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Michael Farrar,[link widoczny dla zalogowanych], deputy director of compliance and enforcement at the state Authority Budget Office, said auditors would likely find the expense logs to be insufficiently detailed and he questioned the public benefit of entertaining at smoke shops.[link widoczny dla zalogowanych]. “If entertaining takes place, you have to ask, ‘What is the result?’” Farrar said.
“If it is simply to entertain because that’s what’s done in the private sector and that’s how business is done, that is not a valid reason for a public benefit corporation.” The authority expends tax dollars for capital projects and benefits from tax-free bonds, but its annual operating budget of about $32 million is derived from airline landing and rental fees, concessions, parking, rental cars and the like. Several reports claimed sales have been soaring up in Indian smoke shops, where Tribal Nations have so far impeded Gov.
Paterson’s efforts to impose taxes on cigarettes sold to non-members of the tribes. “We have warned the lawmakers that it would happen, and now it is indeed happening,” admitted James Calvin, spokesman of New York Association of Convenience Stores. “Every time excise tax goes up, smokers opt for that dark,[link widoczny dla zalogowanych], backstreet, unregulated, untaxed trade in cigarettes on the streets. This measure is obviously self-defeating.”[link widoczny dla zalogowanych].
In case the tendency continues, New York State may fail to collect the $260 million revenue Paterson estimated from the 58 percent tax increase. The hike has generated only $13.8 million each month so far,[link widoczny dla zalogowanych], in conformity with state sales numbers, meaning the policy could be short of as much as $136 million by March 31, 2010. Erik Kriss , Budget Department spokesman confirmed that fiscal analysts predicted a 22 percent decline in cigarette sales in their estimates, so they believe they would reach the target amount for the fiscal year. Budget Department did recently decrease by $113 million the amount expected to be collected by taxing cigarettes sold in reservations.
That measure has been stuck in the courts,[link widoczny dla zalogowanych], with tribes challenging it on grounds that it violated their sovereignty. “I thought it was a (forum) for exploring all avenues, but the issues that were raised were not even technical and they were attacking the bill. There was even a suggestion to drop the phrase ‘graphic warnings’ from the title of the bill and have it replaced by something more generic�Dand we all know that won’t work.”[link widoczny dla zalogowanych].
“This may not be an accurate assessment of the situation because it was a snapshot in a long process and I only attended one meeting,” Assunta said. “(But) it was quite clear that the tobacco industry had great influence on some of the members of that technical committee and that it was reflected in the way the congressmen behaved.” Not surprisingly, Assunta, a senior policy adviser of the Bangkok-based Southeast Asia Tobacco Control Alliance (SEATCA), was never asked for her views during the meeting. And all that huffing and puffing eventually choked the graphic warning bill.