Crains New York - June 24, 2013 - (Page 7)

Bodegas balk at anti-cig plan Group opposes measures aimed at discouraging smoking BY KEN CHRISTENSEN A s the setting sun cast a shadow over the awning of Red Apple Deli Supermarket on West 143rd Street in Hamilton Heights, owner Ramon Murphy walked out onto the sidewalk and received a familiar greeting from a passerby: “King!” “I’ve been on this corner 17 years,” said Mr. Murphy.“Everybody knows me; that’s what they call me.” But lately Mr. Murphy, president of the Manhattan-based Bodega Association of the U.S., finds himself fighting for attention as the group opposes public-health proposals that, it argues, threaten members’ livelihood. After helping to defeat Mayor Michael Bloomberg’s controversial “soda ban”—rejected by a state Supreme Court judge in March—members are opposing what they see as another affront: a trio of anti-tobacco bills. Display ban At the request of Mr. Bloomberg, City Council members proposed a law in late March that would forbid the display of tobacco products and packaging in stores. A second bill would ban retailers from redeeming discounts for tobacco products, require individually sold cigars to be bundled in packs of four, and increase the minimum price of a pack of cigarettes to $10.50. And a third proposal, co-sponsored by City Council Speaker and mayoral candidate Christine Quinn, would raise the minimum age for INCREASE in tobacco purNew York state excise tax rate on chases to 21 cigarettes, 2006 from 18. to 2011 “It’s one after the other, and it’s already difficult to INCREASE in tobacco smuggling make a busirate, same period ness in this Source: Tax Foundation city,” said Mr. Murphy, who noted that his four-employee store is profitable. “When someone hits us, we’re going to hit back.” The Bodega Association has joined a coalition of 13 business groups, backed by tobacco giant Altria Group Inc., the parent of Philip Morris USA, to fight the measures. There are 2,636 bodegas licensed to sell tobacco products in the city, generating an average of almost $60,000 in annual tobacco sales, according to a June report issued by the coalition. The typical bodega stands to lose 15% of total annual revenue if the proposals take effect, the association estimates. Publichealth advocates say the proposals would deter young tobacco users. Opponents in the association worry about the fines built into the tobacco display ban—$1,000 for one violation and $5,000 for three. They say that prohibiting discounts and raising the legal age for tobacco purchases will drive customers to scofflaw tobacco peddlers. To sign up for Crain’s SMALL BUSINESS newsletter, go to www.crainsnewyork.com/smallbiz. ‘Pandemic’ tax evasion Mr.Rodriguez,who joined the association last year, said he loses sales on more profitable fare,like deli sandwiches, when customers buy ciga- UP IN SMOKE: Ramon Murphy says antitobacco laws would hurt bodegas’ sales. GET ENERGY EFFICIENT AND START SAVING TODAY The Green Team can get your 5- to 75-unit building energy ﬁt. GET UPTO ©2013 Consolidated Edison Company of New York, Inc. Ad: Arnell Group 190% 70% Sellers on the black market “don’t pay taxes, and they don’t ask for ID from kids,” said Radhames Rodriguez, owner of Tinton Grocery Store on East 163rd Street in the Bronx,which he says is profitable and brings in $16,000 in weekly revenue. rettes on the street and don’t visit. The city’s finance commissioner, David Frankel, called cigarette-tax evasion “pandemic” at a hearing in May. Nearly 61% of cigarettes statewide in 2011 were smuggled and sold on the black market, as smokers avoided the highest state excise tax in the nation, according to a 2013 Tax Foundation study. On each pack, customers pay $5.85 in excise taxes—$4.35 from the state and $1.50 from the city. Not every owner is worried. “It’s not such a big part of the business,” said Bassam Ali, who sells five or six cartons a week at Junior’s Deli & Grocery in Park Slope, Brooklyn. Ⅲ buck ennis SMALL BUSINESS $20,000 when you install an energy management system GET BIG REBATES on most high efﬁciency light ﬁxtures in common areas GET $115 for each thermostatic radiator valve you install E N E RGY E F F ICIE N CY E XPE RT S 1-877-870-6118 conEd.com/GreenTeam SAVE BIG ON LIGHTING, HEATING AND COOLING UPGRADES. CALL TODAY FOR YOUR FREE ENERGY SURVEY. June 24, 2013 | Crain’s New York Business | 7 http://www.conEd.com/GreenTeam http://www.crainsnewyork.com/smallbiz

Table of Contents for the Digital Edition of Crains New York - June 24, 2013

Crains New York - June 24, 2013
IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
SMALL BUSINESS
BUSINESS PEOPLE
OPINION
ALAIR TOWNSEND
GREG DAVID
REAL ESTATE DEALS
REPORT: 50 MOST POWERFUL WOMEN IN NEW YORK
CLASSIFIEDS
DIGITAL NY
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - June 24, 2013