About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Ulrik Boesen, Cigarette Taxes and Cigarette Smuggling by State, 2019 1 (2021)

handle is hein.taxfoundation/cttxadcge0001 and id is 1 raw text is: Cigarette Taxes and Cigarette Smuggling by State, 2019 FISCAL FACT No. 782 Nov. 2021 Ulrik Boesen Senior Policy Analyst, Excise Taxes Key Findings: The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and global levels. We are a 501(c)(3) nonprofit organization. ©2021 Tax Foundation Distributed under Creative Commons CC-BY-NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 taxfoundation.org Excessive tax rates on cigarettes in some states induce substantial black and gray market movement of tobacco products into high-tax states from low-tax states or foreign sources. New York has the highest inbound smuggling activity, with an estimated 52.2 percent of cigarettes consumed in the state deriving from smuggled sources in 2019. New York is followed by California (43.4 percent of consumption smuggled), Washington (42.6 percent), New Mexico (37.2 percent), and Minnesota (35.2 percent). New Hampshire has the highest level of outbound smuggling at 71.3 percent of consumption, likely due to its relatively low tax rates and proximity to high- tax states in the northeastern United States. Following New Hampshire is Idaho (29 percent outbound smuggling), Virginia (29 percent), Wyoming (23.1 percent),, and North Dakota (18.3 percent). Oklahoma, following a cigarette tax increase from $1.03 to $2.03 in the Summer of 2018, has seen a significant increase in smuggling into the state, moving it from a ranking of 30th to 17th highest inflow of cigarettes in the U.S. Cigarette tax rates increased in 39 states and the District of Columbia between 2006 and 2019. Lawmakers interested in taxing and regulating flavored tobacco and nicotine products should understand the policy trade-offs related to high taxation or bans. With distribution networks already well-developed, criminal gangs are poised to expand into nicotine products.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most