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

1.)   Restore fairness in taxation of cigarettes and motor fuel.

    New York’s convenience store industry continues to bleed billions of dollars in sales annually – and the State is losing over $1 billion in tax revenue – due to a cigarette and motor fuel tax evasion epidemic caused by the State’s insistence on increasing excise tax rates without closing off channels for routinely dodging those taxes. Mom-and-pop retailers need and deserve immediate relief from the ill effects of this pervasive problem.
    - The 58% cigarette excise tax hike of July 1, 2010 should be suspended until the federal courts get out of the way of the tax fairness initiative that was supposed to mitigate the economic harm to tax-collecting retailers.
    - Once tax collection on tribal sales to the public is implemented, Native American-made cigarettes sold to non-Indian New Yorkers should be subject to tax as well as national brands.
    - Curbing motor fuel tax evasion on Indian land is equally important.
    - Late in the 2010 session, the Legislature unwisely relinquished its duty to ratify any negotiated tax agreements with Native American tribes. That power should be restored.

2.)   That’s it.  No more tax or fee hikes impacting C-stores and their customers.

    Our members are still reeling from billions of dollars in tax and fee hikes inflicted by the last two state budgets that drained our resources and cost our customers more money in the midst of the worst economic downturn in decades. Enough.
    - New York taxes on core convenience-store products (motor fuel, tobacco, beer) are already among the highest in the nation.
    - These exorbitant taxes make New York retailers uncompetitive with those in neighboring states and on Indian reservations, driving away customers, jobs and tax revenue.
    - License fees should reflect the state’s administrative costs, not prop up the General Fund.
    - To preserve small businesses as well as tax and lottery revenue, the State should roll back the 900% to 4,900% increase in tobacco retailer registration fees to a more sensible level.

3.)   Quit nagging our customers about what they should or shouldn’t eat or drink.

    Government should give consumers the nutritional information they need, and then trust them to wisely exercise their freedom to choose food and beverages.  With regard to products containing sugar, salt, and/or other targeted ingredients, our customers who consume them in moderation should not be penalized financially because some of their neighbors overdo it.

4.)   Let the FDA do its job regulating tobacco.

    The U.S. Food and Drug Administration is now implementing new nationwide restrictions on tobacco marketing. While NYACS disagrees with many of them, these regulations are being applied in a uniform and systematic manner. Yet New York State and certain localities seem determined to leap-frog the FDA by enacting duplicative or conflicting restrictions, needlessly burdening retail stores.
    - As parents, citizens, and responsible retailers, we share the community’s commitment to preventing youth access to tobacco.
    - In New York, state-level tobacco restrictions often fail because they are so easy for consumers to circumvent via border states, Indian reservations, or the black market. The product continues to be consumed, but licensed, regulated, tax-collecting New York retailers get hurt.
    - In view of this reality, we oppose further State or local restrictions on tobacco retailing  – such as changing the purchase age, outlawing flavored tobacco or cigar wraps, restricting product placement or signage, or limiting the number or type of licensed outlets – because such actions would only place us at a further disadvantage in the marketplace.

5.)   Stop inhibiting our ability to compete and maintain jobs.

    There are already too many product restrictions, labeling requirements, mandates, and other anti-business policies that stymie the ability of retailers and their suppliers to compete, stay profitable, and retain jobs. No wonder New York’s business climate consistently ranks at or near the bottom.
    - State government should expend as much effort educating us how to comply with laws and regulations as it does enforcing them and penalizing us for non-compliance.
    - If the State wants to audit us, come audit our actual records. Don’t just mail us a notice accusing us of under-reporting our sales tax liability based on algorithmic models.
    - Reject new employer cost mandates such as wage inflation, paid leave, and additional coverages that make health insurance even more unaffordable.
    - Agencies should process license applications swiftly so that new locations can start generating sales tax revenue and employment as quickly as possible.

6.)   Give neighborhood convenience stores a lift, for a change.

    For far too long, our stores have suffered collateral damage from the State’s bad decisions on budgeting, regulation, and tax policy. Many have had to close, others have been deprived of the opportunity to grow and add jobs. It’s time for all that to change. We recommend:
    - Restore the sales tax vendor credit that was eliminated in 2010.
    - Remove sales tax on portion of selling price represented by pass-through tax receipts.
    - Elevate the commission on lottery sales to reflect retailer’s higher costs.
    - Allow us to sell wine – without having to pay a ransom to the State.
    - Raise the outdated $1 cap on the fee that stores can charge for cashing a check.
    - Enable more retailers to offer discounts to motor fuel customers paying with cash.
    - Rescue retailers from excessive credit card swipe fees and acceptance rules.
    - Use DEC’s Petroleum Bulk Storage Advisory Council the way it was intended.

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

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