How Many Cigarettes Are Smuggled Into Your State Each Year?
February 9, 2015
Today’s map is from our report released today on cigarette smuggling rates across the states. In it, we find that large differentials in cigarette taxes across states create incentives for black market sales. Smuggled cigarettes make up substantial portions of cigarette consumption in many states, and greater than 20 percent of consumption in 15 states.
(Click on map to enlarge)
New York is the highest net importer of smuggled cigarettes, totaling 58.0 percent of the total cigarette market in the state (a slight increase since last year’s edition of the report). New York also has the highest state cigarette tax ($4.35 per pack), not counting the local New York City cigarette tax (an additional $1.50 per pack). Smuggling in New York has risen sharply since 2006 (+58 percent), as has the tax rate (+190 percent).
On the other end of the spectrum, New Hampshire has the highest outbound smuggling rate of 28.6 percent, as its relatively moderate cigarette excise taxes and close geographical proximity to high tax states makes cigarette trafficking lucrative.
Read the full report.