Vaping Taxes by State, 2023
If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.
3 min read
Expert
Adam Hoffer
Director of Excise Tax Policy
Adam Hoffer is the Director of Excise Tax Policy at the Tax Foundation. Dr. Hoffer earned his PhD in Economics from West Virginia University and his undergraduate degree from Washington & Jefferson College.
Prior to joining the Tax Foundation, Dr. Hoffer was the Menard Family Associate Professor of Economics at the University of Wisconsin-La Crosse and the inaugural Director of the Menard Family Midwest Center for Economic Engagement and Research. Dr. Hoffer was also a Bradley Freedom Fellow with the Wisconsin Institute for Law & Liberty and a senior editor with the Center for Growth and Opportunity at Utah State University.
Dr. Hoffer published 30 peer-reviewed academic journal articles and he is the lead author and editor of two books: For Your Own Good: Taxes, Paternalism, and Fiscal Discrimination in the Twenty-First Century and Regulation and Economic Opportunity: Blueprints for Reform.
He lives in La Crosse, Wisconsin with his wife and two children.
Latest Work
How Should Alternative Tobacco Products Be Taxed?
The potential for alternative tobacco products to save lives is clear and well established. The framework described in this paper uses a scientific approach to tax strategy that will both reduce harm and create a reliable revenue stream for public expenditures.
17 min read
Gas Tax Rates by State, 2023
California pumps out the highest state gas tax rate of 77.9 cents per gallon (cpg), followed by Illinois (66.5 cpg) and Pennsylvania (62.2 cpg).
2 min read
Taxes and Illicit Trade
Taxation plays a key role in driving illicit trade. People respond to incentives, and sizable price markups for legal cigarettes create incentives for tax avoidance.
4 min read
Diesel and Gas Taxes in Europe, 2023
As the EU pursues massive changes in public policy as part of its green transition, expect fuel taxes to be central to any policy discussions.
5 min read
Beer Taxes by State, 2023
Taxes are the single most expensive ingredient in beer, costing more than the labor and raw materials combined.
3 min read
Distilled Spirits Taxes by State, 2023
Of all alcoholic beverages subject to taxation, stiff drinks—and all distilled spirits—face the stiffest tax rates. Like many excise taxes, the treatment of distilled spirits varies widely across the states.
4 min read
Compare Tobacco Tax Data in Your State
Tobacco is the most highly taxed consumer product in the United States. The tools on this page allow you to explore state tax rates and the effects tax policy and tobacco regulations can have on state revenues, smuggling, and effective tax rates for different income groups.
2 min read
How Stable is Cigarette Tax Revenue?
This web tool allows taxpayers to see how cigarette tax revenues have changed since 1955. Across almost all states, a clear pattern of volatility emerges. Tax rate hikes are met with a momentary bump in revenue, followed by a falloff.
2 min read
How to Unlock Global Growth: The Role of Taxation
Our recent policy conference brought together academics and political leaders to present research on some of the most pressing issues in global tax policy and to discuss solutions that can unlock genuine global growth.
9 min read
Recreational Marijuana Taxes by State, 2023
Recreational marijuana taxation is one of the hottest policy issues in the U.S. Currently, 21 states have implemented legislation to legalize and tax recreational marijuana sales.
6 min read
Global Excise Tax Application and Trends
When designed well, excise taxes discourage the consumption of products that create external harm and generate revenue for funding services that ameliorate social costs. The effectiveness of excise tax policy depends on the appropriate selection of the tax base and tax rate, as well as the efficient use of revenues.
83 min read
Shrinking Revenue from Sin Taxes: A Small Price to Pay for Healthier Behaviour
Younger and healthier Brits have created a $17.1 billion budget hole by smoking and drinking less. Yet, despite this resounding piece of positive news, some see any decline in tax revenues as a public finance crisis. Excise taxes target a tax base that is intended to shrink. Less consumption is a stated goal of the policy.
3 min read
Vermont Tobacco Flavor Ban Would Cost Nearly $16 Million Per Year
Vermont lawmakers must weigh the potential benefits of cessation for some smokers against increased smuggling (and related criminal activity), and a loss of tax revenue not commensurate with a decline in smoking.
6 min read
California Flavored Tobacco Ban May Cost More than $300 Million in First Year
California is losing tax revenue while consumers turn to cross-border purchases or, often, illicit trade of flavored cigarettes, which makes everyone worse off.
4 min read
New York’s Proposed Cigarette Tax Hike and Flavor Ban Will Fuel Illicit Markets and Decrease Revenue
Earlier this month, New York Governor Kathy Hochul (D) proposed increasing the state’s cigarette tax rate by $1.00 a pack, banning the sale of flavored vaping products, and ceasing the sale of all flavored tobacco products. If enacted, these policies would fuel black markets and create a fiscal hole for the state to fill, all while hurting New York businesses and consumers.
4 min read
State Tax Changes Taking Effect January 1, 2023
Most of the 2023 state tax changes represent net tax reductions, the result of an unprecedented wave of rate reductions and other tax cuts in the past two years as states respond to burgeoning revenues, greater tax competition in an era of enhanced mobility, and the impact of high inflation on residents.
20 min read
Excise Taxes and Fees on Wireless Services Increase Again in 2022
While the wireless market has become increasingly competitive in recent years, resulting in steady declines in the average price for wireless services, the price reduction for consumers has been partially offset by higher taxes.
41 min read
Cigarette Taxes and Cigarette Smuggling by State, 2020
People respond to incentives. As tax rates increase or products are banned from sale, consumers and producers search for ways around these penalties and restrictions.
19 min read
The Future of Tobacco Taxation in Europe
Later this week, the European Union is expected to release a new Tobacco Tax Directive, the first update in more than a decade. Early reports indicate that the EU will propose a significant increase to the existing minimum cigarette tax rates levied across the Union and expand the product categories that are taxed, including a block-wide vaping tax.
7 min read