Anarchy in action: it seems that $3 tax on a $2 pack of cigarettes is a bit much to pay. Fortunately, there are Indian nations within striking range of NYC. Businesses in the nations are cleaning up, selling untaxed cigarettes.
This illustrates an important principle that I shall have more on eventually: competition in supplying law has the practical effect of laissez faire. As long as there are multiple sources of law, any of which one might affiliate with, there tends to be a "race to the bottom" effect between the law suppliers, bidding for customers. What's the "bottom"? Freedom - no law at all. In this case, huge taxes are applied by the monopoly protection agency covering most of the New York state area, but tiny agencies are starting to have a serious effect. Fewer taxes are collected, and the businesses affiliated with the tiny protection agencies are enriched.
Meanwhile, cigarette selling businesses who are subjects of the large and evil monopoly are fighting like hell to use legal means to crush the competition. (Let's hope for the sake of New Yorkers that they fail in that.) They do this because it's the easiest way for them to get an even playing field with the Indian merchants. (Getting the tax repealed in NY would be better, but they know it is practically impossible.) In full anarchy, they would simply switch agencies, voting with their feet that $3/pack is too much tax.