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Issue Date: Vol. 50, No. 7, July 2010, Posted On: 6/30/2010

New York Legislature Passes Budget Without Governor's 'Soda Tax'

Tim Sanford
New York State Automatic Vending Association, New York soda tax, Governor David Paterson tax, cigarette tax, vending, vending machine, soda vending

ALBANY, NY -- New York lawmakers have passed a budget bill that imposes an estimated $1 billion hike in taxes and fees on the state's residents, but does not include the 1¢-per-fl.oz. tax on sugar-sweetened soft drinks proposed by Gov. David Paterson (and endorsed by New York City Mayor Michael Bloomberg).

That proposal provoked fierce opposition from labor and industry groups, including the New York State Automatic Vending Association, and sparked rallies here to protest a measure that opponents said would cost jobs and impose an undue burden on the average family.

The governor had hoped that the measure would raise $1 billion in revenues to help rectify a projected $9.2 billion deficit.

The budget measure includes an increase of $1.60 a pack in the state cigarette tax to a total of $4.35 -- breaking the record $3.46 per pack record previously held by Rhode Island, and raising the average price of a pack to $9.20.

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