The state is losing nearly $2 billion dollars in untaxed cigarettes.
That’s according to a report from the State Association of Convenience stores.
The report says smokers don't pay taxes on half of all the cigarettes they smoke in New York.
The study says the state loses at least $1.67 billion in tax revenue on those cigarettes, which are bought at Indian reservations, military bases, duty-free or in states where taxes are lower. That doesn't include black-market and counterfeit cigarettes.
The report furthers the convenience store owners argument that its members are hampered by poor enforcement of tax laws on cigarettes.
The study also says that if taxes were paid on all cigarettes smoked in New York it would generate 6,776 jobs and $257 million in wages.
New York State's cigarette excise tax rate is $4.35 per pack is the highest in the country. New York City adds $1.50 per pack on top of the state tax.