Get ready for $11 a pack cigarettes By Aaron Smith, CNNMoney.com staff writer June 22, 2010: 12:05 PM ET NEW YORK (CNNMoney.com) -- New York City smokers already pay the highest cigarette taxes in the nation, but a new state law will push those taxes even higher this summer. The state legislature on Monday approved a bill adding an additional state tax of $1.60 to every pack sold, effective July 1. This bill, which was signed by Gov. David Paterson on Monday, will raise the state tax to $4.35 per pack. New York City smokers pay an additional municipal tax of $1.50 per pack, for a current total tax of $4.25 per pack. That's the highest state-local tax whammy in the country, according to the Campaign for Tobacco-Free Kids. Chicago is the runner-up, at $3.66 per pack. This new tax increase means that smokers in the city will pay $5.85 per pack in taxes. This drives the average local price up to nearly $11 per pack, according to some estimates. The tax hike is aimed at generating an additional $440 million in 2010-2011 tax revenue to support healthcare programs. The bill also requires that taxes to be imposed on cigarettes sold at Indian reservations, including the Shinnecock Indian Nation, which was recently recognized by the federal government. "We've had very preliminary talks with not only Gov. Paterson but the Spitzer administration, so we knew this was coming and we're following it closely," said Randy King, chairman of board of trustees for the Shinnecock Indian Nation in Southampton, where several stores sell tax-free cigarettes. "We're just going to take the information back to the tribe and see what direction we get on how to approach it."