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As states hike tobacco taxes, concern grows over black market

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  • As states hike tobacco taxes, concern grows over black market

    By David B. Caruso
    New York, New York (AP)

    Tucked away on just 55 acres in a nondescript Long Island suburb, the Poospatuck Indian Reservation is easy to miss on the long drive up the coast from New York City. But to anyone looking for cheap tobacco, the 60-mile haul is worth the trip.

    Cigarettes are sold tax free on tribal lands in New York, and the savings are eye-popping. Once lawmakers approve the state’s latest hike, crafted during April, smokers will be able to avoid $2.75 in taxes per pack by buying on the reservation. The discount jumps to $4.25 if you factor in the municipal tax added in New York City.

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