According to news reports, the number of cigarettes sold in New York City has dropped by almost half since the city upped the tax on a pack of cigarettes from $.20 to $1.50 July 1. Some brands now cost up to $7.50 per pack.

New Jersey Governor Jim McGreevey followed suit, signing a $.70 tobacco tax increase into law on July 1. New York State and New Jersey now have the highest tax in the country, at $1.50 per cigarette pack.

And, the American Cancer Society’s (ACS) Eastern Division said it has seen a 120% percent increase in calls from New York and New Jersey residents who want help quitting.

"We all know that smoking kills, and increasing the cigarette tax saves lives," said Mayor Michael R. Bloomberg, who signed the bill in a special ceremony, Sunday, June 30.

The health department estimates the tax will prevent more than 33,000 premature deaths among [New York City] children and more than 1,200 additional premature deaths among the children born in [New York City] each year.

Studies have shown that when the price of cigarettes increases, the number of youth who smoke decreases. One study the mayor cited said a 22% tax increase would reduce smoking among youth by 15%. That would mean roughly 70,000 less smokers, which will prevent more than 20,000 additional premature deaths, he said.

"We’re very pleased, because it’s been proven that higher prices decrease use among young teens," commented Dave Momrow, the ACS' eastern division’s senior vice president of cancer control.

"Reducing the number of smokers will assist in addressing smoking-related illnesses and reduce the tremendous burden smoking has placed on the city's public health system," Bloomberg said. "This may be the most important measure my administration takes to save people's lives."

The mayor said that in addition to saving thousands of lives, the tax would raise money. Some news reports have been critical of the tax, saying it would actually lose money because of decreased cigarette sales.

The reports said this could endanger financing for the state's Health Care Reform Act (HCRA) programs. HCRA was signed into law April 2, by New York Gov. George E. Pataki to improve the state's health care system. Its main purpose is to provide funding for training and recruiting healthcare workers.

Smokers may turn to other sources for their cigarettes, such as the Internet, mail order, or other states, said reports.

But an article in a recent issue of Tobacco Control (Vol. 11, No. 2: 130-134) said California smokers studied after their state increased cigarette taxes in 1999 did not appear to go out of their way to find cheaper cigarettes.

More than 70% bought by the pack rather than the carton, which was more expensive, and almost 90% of smokers who bought their cigarettes from convenience or liquor/drug stores (where prices were highest) also bought by the pack, said the study.

The California study proved that a state's excise tax could successfully raise revenues while at the same time, reduce smoking.

Bloomberg said the bill will generate approximately $111 million for the City of New York for fiscal year 2003. He estimated it would raise $116 in fiscal year 2004, and help close the city's $4.8 billion budget gap.