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State Cigarette Taxes in Michigan - $67 per Carton! The average cost of a pack of cigarettes is $6.75 in Michigan. That price varies upon brand and location, but smokers looking to purchase a carton of a brand-name cigarette in the state of Michigan are going to have to cough up about $67.50 for the pleasure of lighting up. According to several sources, one of the worst problems that Michigan is experiencing due to the higher cigarette prices is smuggling. Out-of-state sales, internet sales, and bootleggers who traffic in cigarettes from areas such as Kentucky, Tennessee and even Nebraska where taxes fall far below the national average put a big dent in the potential income from taxes for the state. Smuggler's Blues While many states with high cigarette taxes experience this problem to a large degree, according to Michigan Capitol Confidential.com, Michigan is dealt a blow of 26 percent of cigarettes smuggled into the state. That does not include the number of sales lost to consumers who drive to other states to make their purchase, or who buy cigarettes online. Consumer smuggling, out-of-state consumer purchases, is commonly labeled "casual smuggling." Michigan holds the 5th highest rate of such smuggling activity in the nation, at 11.6 percent. It is common for Michigan smokers to cross the border into Indiana to make their cigarette purchases, because the cost of a carton is up to $10 cheaper due to lower state taxes. Smuggling of any type isn't without its consequences, however. The penalties for getting caught with cigarettes not carrying the Michigan tax stamp can be quite heavy. Possible costs include seizure of products without compensation, and even seizure of vehicles used to transport goods across state lines. There are also prison penalties of up to five years in jail as well as a possible $5,000 in fines. Higher Taxes Has its Own Consequences In spite of all of the smuggling, and a warning by Michael LaFaive, Mackinac Center's director of the Morey Fiscal Policy Initiative Michigan Governor Jennifer Granholm still attempted to raise taxes again in late 2009 by 25 cents per pack. LaFaive said, "It is tempting to raise taxes on cigarettes, but few people realize the vast array of unintended consequences, such as theft and violence, inflicted on job providers, consumers, police and sometimes innocent civilians." The tax hike didn't happen at that time, but Michigan is still high in the overall national rankings for cigarette taxes according to the tobaccofreekids.org website. They are currently at 11th place, with a $2.00 per pack tax. Their 11th place standing is shared by Alaska, Arizona, Maine and Maryland. Even with the smuggling, taxes on tobacco products in the state of Michigan are expected to net the state around $1 billion for the year. Cigarette sales make up the lion's share portion of that amount, with other tobacco-related products such as cigars, loose tobacco and dip making up only 4% of the total amount. That disparity may not last long, however. Lawmakers are on the move to target non-cigarette tobacco products as smokers are seeking lower-cost alternatives to cigarettes such as loose-tobacco and tubes to make their own, and even cigars to curb their addiction without the price hit. Conquering the Habit For Michigan smokers who would rather quit than submit to the high prices, or break the law to support their habit, there are ways out. Local hospitals have smoking cessation classes and support groups, and there are toll-free hotlines to help smokers though the struggle of addiction. It is important for smokers to seek help from some source, because it is not easy to go it alone, and the chances for success are much higher if you have help. General Information | Frequently Asked Questions | Shipping | Order Status | Help
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