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Tobacco Retailing - Tax Evasion - Motor Fuels - Beverage Retailing - Store Operations - Positions

2010 NYACS Legislative and Regulatory Agenda

NYACS Will Actively Support…

• Full and fair tax collection on cigarettes and motor fuel

The state Tax Department's failure to enforce the March 1, 2006 state law mandating collection of taxes on Indian sales of tobacco and motor fuel to non-Indian New Yorkers is inexcusable. The casualties for non-Indian retailers, state and local tax revenues, and anti-smoking efforts are mounting. NYACS will pursue every legal, legislative and other tool available to attain the level playing field the law requires and our members deserve. Negotiated settlements that fall short of full and fair tax collection are unacceptable. The State must also more aggressively enforce its laws restricting untaxed sales of cigarettes via Internet or mail order.

Efforts to reduce credit card fees for retailers and their customers

The processing/interchange fees paid to banks and credit card companies by New York convenience stores now often exceed the typical retailer’s net margin on motor fuel. These fees are excessive. In many cases retailers are forced to pay fees for processing credit-card payment on the state and local taxes included in the cost of a gallon of gas. NYACS supports the National Association of Convenience Stores’ effort to address this issue at the federal level, but will also support New York State-specific initiatives to remedy this growing problem. In addition, NYACS supports state-level legislation to require credit and debit card companies and issuing banks to fully disclose to merchants all rules, rates, and terms for processing card transactions.

Higher lottery commissions to reflect merchant’s higher costs

Despite escalating labor, energy, insurance, taxes and other costs, the commission rate paid to lottery retailers has remained as 6% for more than 30 years. NYACS advocates increasing the commission to 8% to reflect the merchant's sharply higher costs of selling lottery games. By reallocating administrative resources, this increase can be achieved without impacting the net amount New York Lottery contributes to education.

Reform of CMSA minimum markup requirements

For 20 years, the Cigarette Marketing Standards Act has discriminated against mom-and-pop stores by forcing them to pay suppliers a higher wholesale price for cigarettes than larger retail chains they compete with. With single-store operators comprising two-thirds of our retail membership, NYACS supports amending the CMSA to establish one, uniform wholesale price level that is acceptable to all NYACS member retailers and wholesalers. In addition, NYACS seeks to increase the state minimum retail markup on cigarettes from the current 7% to 18%, due to escalating costs of doing business. NYACS also supports a concurrent modest increase in the wholesale markup, keeping in mind that in 2002 the wholesale industry received a substantial boost in the form of a statutory 20¢-per-carton "handling fee" paid by retailers to wholesalers.

Reforming ABC laws to reflect a 21st century marketplace

In order to maximize compliance by the industry, Alcoholic Beverage Control laws and regulations governing the sale of beer for off-premise consumption need to be clear, sensible, and reflect the realities of today’s marketplace. In many cases, they don’t. NYACS supports amending ABC laws and regulations so that licensed retailers of beer understand exactly what the rules are surrounding licensing, inventory, signage, supply chain, and other issues.

Approval for convenience stores and supermarkets to sell wine

NYACS supports amending the Alcoholic Beverage Control law to permit food and grocery stores that sell beer to apply for a license to sell wine for off-premise consumption, as is common practice in 35 other states.

Enactment of civil penalties for minors who possess tobacco

Preventing youth access to tobacco should be a shared responsibility among retailers, their employees, the community, and young people themselves.  Since most underage smokers get cigarettes not from stores, but from adult relatives or acquaintances, the only way to stop teen smoking is to stop teens who are smoking.  Therefore, New York must make it illegal for minors to possess and/or use tobacco, as 45 states already do.

The agenda of the NY Main Street Small Business Coalition

NYACS supports the legislative and regulatory agenda of the New York Main Street Small Business Coalition, an Albany-based alliance of statewide membership organizations representing independent retailers, farmers, truckers, hoteliers, and other neighborhood businesses. It provides a unified voice on statewide legislative and regulatory issues that broadly affect the ability of small businesses to contribute to New York's economic vitality.


NYACS Will Actively Oppose…
Further expansion of bottle bill to additional non-carbonated beverages

NYACS opposes expansion of the deposit container law to include fruit juices, sport drinks, iced tea and other non-carbonated beverages.  Redemption and storage of returnable bottles and cans is already a nuisance for smaller stores; the additional handling and storage burdens and heightened sanitation risk would make it a nightmare. The retail handling fee, recently increased from 2 cents to 3.5 cents per redeemed container, should remain as is.

Mandatory increases in personnel costs i.e. forced health coverage

New York retailers are already struggling with upward pressure on payroll costs triggered by the state-mandated three-step hike in the minimum wage (3rd increase to $7.15 took effect 1/1/07). NYACS vehemently opposes any further government-inspired, job-killing wage inflation or "pay or play" health insurance spending mandate such as that enacted by New York City and Suffolk County.

Higher taxes/fees directly impacting C-stores and their customers

NYACS opposes increasing state taxes on motor fuel, beverages, tobacco, and/or other core products, all of which are already among the highest taxed in the nation. Licensing fees should reflect the state's actual administrative costs, not be used to balance the budget.

Unwarranted marketing restrictions on retailers and wholesalers

- NYACS recognizes that protecting the safety of the nation's food supply necessitates proper labeling of certain products, and we are committed to complying with such practices.  But we will oppose the proliferation of excessive and unwarranted labeling requirements.

- While our members share society's concern about proper nutrition, NYACS believes no customer should be denied access to or charged more for a particular food product due to knee-jerk public policies arising from irrational theories about eating habits.

- In defense of our members' First Amendment rights, NYACS opposes statewide or local efforts to prohibit retailers from displaying tobacco, beer or other product signage in windows of their premises.

- NYACS opposes any attempt to limit or prohibit overnight sales of beer at stores that also sell gas.  Such proposals are rooted in the theory that such sales promote drinking and driving. There is no factual basis for that conclusion.  NYACS also opposes further statewide restrictions on hours when licensed retailers may sell beer for off-premises consumption.

Changing the tobacco purchase age without holding minors accountable

The concept of raising the tobacco purchase age from 18 to 19 merely nibbles around the edges of the youth smoking problem and will yield no meaningful progress. Since most underage smokers get cigarettes not from stores, but from adult relatives or acquaintances, the only way to stop teen smoking is to stop teens who are smoking by passing a possession law, as 45 states already have.

Excessive, penalty-driven DEC pump-and-tank enforcement

In parts of the state, the Department of Environmental Conservation has levied exorbitant fines against retailers for seemingly minor deficiencies related to monitoring underground petroleum storage tank inventories. The expectations of the Department in this area should be clarified, and enforcement practices from one region to the next made more consistent. The overall goal of enforcement should be corrective action and achieving compliance, not excessive punishment or revenue enhancement.

Required licensing of non-bank-owned ATM machines

Some state legislators and localities are seeking to require retailers who own their own automated teller machines to pay annual fees to register them, ostensibly to guard against "identity theft." The state can easily compile a list ATM locations without requiring stores to pay $50 or $100 a year for the privilege of keeping the ATM they've responsibly operated for 10 years or more.

OHA 2010 State of State Summary

Sampling of State of the State Reaction

Testimony 1/22/10:  Senate Health Testimony

Testimony 1/25/10: SLA Divisional Order #780

Testimony 1/25/10:  Senate Investigations and Government Operations


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