New York city doesn't get its taxes if someone sells cigarettes outside a store. Its all about nanny state taxation to try and stop people from smoking
Mainly taxes. If you buy cigarettes, you pay the tax on them upon purchase. You resell those cigarettes, tax money isn't coming in.
But why is this specific to cigarettes? When you buy anything legally, cigarettes included, you're paying tax on it, and when you resell that same item, there are no taxes applied, so why is it just for cigarettes? Is it the same for alcohol?