New York Task Forces Seize $6.6M in Contraband Tobacco

ALBANY, N.Y. — New York State's Cigarette Strike Force has upped its haul of illicit tobacco products this year.

According to Gov. Andrew Cuomo, the Cigarette Strike Force seized $6.6 million worth of contraband tobacco in 2017, a $1-million increase compared with last year's total.

Untaxed cigars made up the bulk of these confiscations. Specifically, investigators seized more than 1.5 million illegal cigars this year compared with 260,000 in 2016, a 476-percent increase.

In addition, more than 47,000 cartons of untaxed cigarettes were seized along with 134,000 counterfeit tax stamps and nearly $445,000 in cash. 

"This illicit activity not only hurts law abiding businesses, but it also places undue burdens on taxpayers due to the loss of state revenue for vital services," Cuomo said. "This administration will continue to do everything in its power to crack down on these criminals and help ensure a fair and level playing field for all."

This year, Cigarette Strike Force investigators also arrested 85 accused cigarette and tobacco smugglers who face more than $7 million in fines.

The New York Tax Department created the Cigarette Strike Force in 2014 under the director of Cuomo in a bid to stem illegal tobacco trafficking and sales. Since its inception, each year the Strike Force has increased the number of inspections and seizures, Cuomo's office said.

In October, the Tax Department announced that it had joined forces with the Gaming Commission, which oversees lottery ticket sales, and the State Liquor Authority in an initiative to further reduce sales of contraband cigarettes.

Under the policy, a tobacco-licensed retailer found to be in possession of untaxed cigars or cigarettes will face immediate enforcement action, leading to the possible suspension or revocation of licenses to sell tobacco, alcohol and lottery tickets. The agencies are targeting the largest revenue drivers for certain retailers, further deterring illegal cigarette and tobacco sales.

There are approximately 21,000 licensed retailers selling cigarettes and other tobacco products in New York State.

"The collaboration among our criminal investigators and law enforcement partners, and the added deterrence from other state agencies, such as the State Liquor Authority and the Gaming Commission, have been crucial to our success at removing contraband tobacco from our streets," said Acting Commissioner of Taxation and Finance Nonie Manion.

"Gov. Cuomo's foresight to establish the Strike Force continues to benefit all New Yorkers," Manion added.

New York has the highest state excise tax for cigarettes at $4.35 a pack. The New York City local excise tax is $1.50 per pack of cigarettes, bringing the combined tax rate for a pack of cigarettes in the five boroughs to $5.85.