Court Blocks Tobacco Registration Fee Hike

Restraining Order Freezes Fee at $100 Per Store, For Now

In a lawsuit filed by NYACS and its allies, State Supreme Court Justice Thomas Feinman issued a temporary restraining order on Wednesday, September 16, barring the state Tax Department from implementing -- for now -- the astronomical increase in retail tobacco registration fees.

This permits retailers to file their 2010 registration renewal forms with the Tax Department with payment of the old fee of $100 per store. Please understand, however, that this is only a temporary ruling, and if the court ultimately rules against us, you would then have to pay the higher fee.

Co-plaintiffs in the court action against Governor Paterson were NYACS, the New York State Association of Service Stations and Repair Shops, Long Island Gasoline Retailers Association, Service Station Dealers of Greater New York, and the United 7-Eleven Franchise Owners of Long Island and New York, with backing from Harold Levinson Associates and 7-Eleven Inc. Kudos to our attorneys -- the Long Island firm of Forchelli, Curto, Deegan, Schwartz, Mineo, Cohn & Terrana -- who drafted the case and made persuasive oral arguments before Judge Feinman in court this morning. 

The restraining order is in effect pending a court decision on our motion for a preliminary injunction. We do not know how long it will take for the court to decide this, but our attorneys expect it will be sometime after December. Therefore, the battle is not over, but for the moment, NYACS member retailers can breathe a temporary sigh of relief.

Today's ruling also alows us more time to lobby the Legislature to pass a NYACS-backed Magee/Stachowkasi bill that would roll back the fee hike to a more reasonable level.

Our attorneys advise that retailers should now proceed with filing the NYS Department of Taxation and Finance Form DTF-719-MN, known as Renewal Application for the Registration of Retail Dealers and Vending Machines for Sales of Cigarettes and Tobacco Products, with a $100-per-store flat fee by next Monday's September 21st deadline.

Read Judge Feinman's Order