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Highest
State
Cigarette Taxes
Massachusetts $1.51
New York $1.50
New Jersey $1.50
Washington $1.43
Rhode Island $1.32
Michigan $1.25
Hawaii $1.20
Pennsylvania $1.00
New York
Cigarette Tax
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States charging
the lowest tax
per pack of cigarettes
State Tax Rate, Per Pack
|
| Virginia |
2.5 cents
|
| Kentucky |
3 cents
|
| North Carolina |
5 cents
|
| South Carolina |
7 cents
|
| Georgia,
Wyoming |
12 cents
|
| Alabama |
16.5 cents
|
| Missouri, West
Virginia |
17 cents
|
| Mississippi,
Montana |
18 cents
|
| Colorado |
20 cents
|
| New Mexico |
21 cents
|
| |
|
Source:
Federation of Tax Administrators, as of July 1, 2002 |
Evidence
Cigarette Tax Hikes Increase Crime,
But Don't Reduce Teenage Smoking
 Between 1984 and 1993, Canada doubled its
tax on cigarettes with the aim of reducing smoking and increasing tax
revenues. Last December, Sgt. Alain Giroux testified on the effects of those
tax increases before a U.S. Senate subcommittee on behalf of the Royal
Canadian Mounted Police.
- He reported that only did underage smoking fail to
decrease, but an estimated 40 percent of Canada's cigarettes are now sold
on the black market -- most of which are smuggled over the U.S.-Canadian
border.
The growth in the black market -- due
almost entirely to the high cigarette tax -- spawned violence and nurtured
organized crime.
Being able to get cigarettes on the
black market, rather than being turned down in legitimate stores, underage
youths increased their smoking.
The massive switch to black market sales frustrated
officials' attempts to raise revenues.
Similar evidence of the destructive impact
of increased cigarette taxes is also available in the U.S., experts point
out.
- After New York, California and Michigan increased
cigarette taxes beginning in 1988, each reported a substantial reduction
in cigarette sales -- by 31 percent, 28 percent and 30 percent,
respectively.
Yet the evidence suggests that smoking
did not decrease in these states -- even going up slightly in Michigan as
residents started buying their favorite brands out of state.
In 1995, one year after Michigan raised
its cigarette tax, low-tax states within a one-day drive saw an increase
in their cigarette sales -- ranging from 4.5 percent to 12 percent.
Since California raised its cigarette tax in 1988,
black market sales have risen to an estimated 17.2 percent to 23 percent
of cigarettes sold.
Analysts conclude it is likely proposed
federal cigarette tax increases in the U.S. would have similar effects.
Source: Erin Schiller (Pacific Research
Institute), "Smoking Up North," Washington Times, February 11, 1998.
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