New York State Lawmakers Approve Cigarette Tax Hike

In an effort to raise revenue and get New Yorkers to quit smoking, lawmakers passed the new tobacco legislation that will raise taxes on cigarettes from $2.75 to $4.35.

With the $1.60 cent tax already in place, the tax will jump to $5.85 per pack in the city. The new law also authorizes the state to collect taxes on cigarettes from non-tribal customers on Native American lands.

Several Democrats opposed the bill but voted for it because it was attached to a budget bill that raises $440 million in revenue for the state.

Opponents say the law will set a bad precedent.

"It gives the governor the unprecedented power in this bill to settle a case without legislative approval, and not just settle any case but settle in a way that would change the law as it relates to Native American tax collection," said Jose Luis Murillo, Jr. of the Altria Group.