The governor of the State of New York Andrew Cuomo has shown his presidential ambitions over the past two years with very limiting laws towards marijuana rights of terminally ill patients of the state. Since then he has set his sights on the vape industry, New York City which has one of the highest tobacco taxation mandates in the world has drastically lost the generating of income based on tobacco product sales through both the boom of the vaping industry as well as its smoke free campaign which offers residents of the state the option of nicotine gum or patches as long as they are of legal age.
Countless studies have shown that nicotine gum and patches have a very low success rate and thus the state has dumped 42 million dollars annually into it's TCP (Tobacco Control Program). One would imagine that a state that sees prices of cigarettes on average at $13 per pack would've prepared for the loss of this revenue, more so because by their own acknowledgement spending 42 million dollars is a lot less than the cost of treating smokers who become cancer patients. Back when I became a vaper the only vape shops in the state were in outer boroughs because vaping had not penetrated the mass market of potential converters and even then it was being scrutinized by the likes of politicians seeking television coverage, so it comes as no surprise that the governor of the state is latching on in wanting to milk a new industry that is replacing one he has had a hand in killing off.
While the TCP is a commendable program it is a not a perfect fix and charging a 10cent per milliliter tax is even more flawed. Our business structure has been of mid-tier pricing with top tier manufacturing. Considering we as a company pay some of the highest rent prices of any vape company in the world for the benefit of manufacturing in NYC this can be a business killer for us as a retailer. The additional cost of $12 per 120ml bottle sold brings our price to $42 which is not a very attractive situation for either the vendor or the consumer. Vaping has generated revenue for the state, employed many, and has led to the creation of many first time entrepreneurs. Penalizing us now may lead many of us to consider a move to neighboring states to counter the price adjustments we will have to make in order to remain attractive enough to in-state vapers. Decisions that hurt a growing industry to pay for budgets that you've blown wide open with heavy infrastructure development and fixes should not come at the expense of an industry that has significantly lowered the cost of health care in a state that boasted some of the highest rates of smoking adults which has dramatically decreased but is only known to credit the TCP program as the reason why.
He may want to implement taxes on us but it will not happen without a fight, so while Mr. Cuomo has his eyes set on a 2020 run he should worry about right now because three years is a long time to put up a fight and one that may end up terminating your presidential run before it even begins.