Skip to content

Cigarette and Tobacco Taxes

All Related Articles

Colorado proposition 121 Colorado proposition FF Colorado income tax reduction or cut election results 2021 tax ballot measures Colorado proposition 119 Colorado proposition 120 Colorado proposition CC, Colorado TABOR, Colorado public education, Colorado education funding

Colorado Tobacco Tax Bill Includes Positive Change

While it is understandable that lawmakers and organizers are worried about Colorado’s financial situation, they should remember that narrow taxes are volatile and disrupt markets. Excise taxes can play a role in state revenues even as policymakers appreciate that excise taxes are not viable long-term revenue tools for general spending priorities.

4 min read
state vapor taxes, vaping taxes by state, vape taxes by state, state vapor taxes, vapor taxes in your state

Vaping Taxes by State, 2020

Many states may be looking toward vapor and other excise taxes to fill budget holes caused by the coronavirus crisis. While those areas may represent untapped revenue sources for many states, taxing those activities is unlikely to raise much revenue in the short term.

3 min read
payroll tax cut, payroll taxes

Can States Close Budget Deficits with Excise Tax Hikes?

We examine whether excise taxes are a solution to budget deficits, and while the short answer to that question is no, there are of course nuances. Excise taxes can play a role in state revenues even as policymakers appreciate that excise taxes are not viable long-term revenue tools for general spending priorities.

21 min read
How high are vapor taxes in your state? State nicotine tax rates, state taxes on nicotine products

Excise Taxes on Vapor Products Are Trending

While lawmakers are working through the design of vapor tax proposals, they must thread the needle between protecting adult smokers’ ability to switch and barring minors’ access to nicotine products. A good first step is creating appropriate definitions for the new nicotine products to avoid unintended disproportionate taxation based on design differences or bundling.

7 min read
Maryland digital advertising tax litigation internet tax, Maryland digital ad tax, Maryland tax increases and Maryland tax proposals 2021

Maryland Legislature Seeks Revenue with Risky Proposals

One notable consequence of high state tobacco excise tax rates is increased smuggling as people procure discounted products from low-tax states and sell them in high-tax states. Smugglers wouldn’t have to look far to find cheaper smokes. All of Maryland’s neighboring states have rates lower than $4 per pack, including Virginia ($1.20) and West Virginia ($0.30). Such an increase would impact the many small business owners operating vape shops around the state and convenience stores relying heavily on vapers as well as tobacco sales.

7 min read
e-cigarette tax, taxing nicotine products, nicotine tax, vaping, vapor

Banning Flavored Tobacco Could Have Unintended Consequences

The prospect of a ban on flavored tobacco and nicotine products highlights the complications of contradictory tax and regulatory policy, the instability of excise taxes that go beyond pricing in the cost of externalities, and the public risks of driving consumers into the black market through excessive taxation or regulation.

6 min read
e-cigarette tax, taxing nicotine products, nicotine tax, vaping, vapor

Taxing Nicotine Products: A Primer

New nicotine products, along with a greater consciousness about the dangers of smoking, have prompted millions to give up smoking. This has contributed to federal and state excise tax collections on tobacco products declining since 2010. Our new report outlines the best way to tax nicotine products based on health outcomes and revenue stability.

49 min read
Virginia local option sales tax

Virginia Governor Looks to Excise Taxes

The proposed budget reflects a growing trend as policymakers across the country look to excise taxes as long-term solutions to budget woes. While excise taxes can be a part of the revenue picture, they are not a sustainable revenue source due to their narrow base, which is easily affected by changes in consumer behavior or market conditions.

2 min read
2019 Election Day 2019, state and local tax ballot measure results, 2019 tax ballot measures, 2019 ballot results

Results of 2019 State and Local Tax Ballot Initiatives

Election Day 2019 will feature notable tax-related ballot measures in California, Colorado, New Mexico, Pennsylvania, Texas, and Washington. Once the polls close tonight, beginning with Pennsylvania and Texas at 8 PM EST, we will begin tracking the results as they come in.

4 min read
European tobacco tax, Tobacco taxes in Europe, Cigarette taxes in Europe, European cigarette taxes, Cigarette taxes in the EU, tobacco tax, cigarette taxes EU, European cigarette tax, EU cigarette taxes

Cigarette Taxes in Europe

Today, Ireland and the United Kingdom levy the highest excise duties on cigarettes in the European Union (EU), at €7.57 (US $8.93) and €6.57 ($7.75) per 20-cigarette pack, respectively. This compares to an EU average of €3.09 ($3.64). In contrast, Bulgaria (€1.76 or $2.07) and Hungary (€1.96 or $2.31) levy the lowest excise duties.

2 min read