Brent Auberry Analyzes New York City Cigarette Tax in Law360

In light of significant cigarette excise tax evasion, New York City has increased penalties for selling cigarettes without legal tax stamps, increased the floor price per carton and banned the use of coupons for tobacco products, Law360 reported. Brent Auberry of Faegre Baker Daniels told Law360 that the the strict regulation could actually increase the strong black market for tobacco in New York.

"What legislatures are trying to do is define that point on the spectrum where they can regulate cigarette use...and maximize the effect of that social engineering," Auberry said. "But at some point, the more layers of tax or red tape you place on an activity, [the more] you will induce some people to push outside those boundaries."