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State Cigarette Smuggling as a Percentage of Total State Cigarette Consumption (Legal and Illegal), 2013

January 14, 2015

This report, part of the Mackinac Center for Public Policy and Tax Foundation’s annual study of trends in interstate cigarette purchase behavior, lists and updates interstate smuggling rates for all 50 states.

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This report, part of the Mackinac Center for Public Policy and Tax Foundation’s annual study of trends in interstate cigarette purchase behavior, lists and updates interstate smuggling rates for all 50 states. The study differentiates between causal tax evaders and organized commercial evasion, as well as international smuggling from Canada and Mexico.

According to the study’s executive summary, “the top five inbound smuggling states are New York (58 percent), Arizona (49.3 percent), Washington (46.4 percent), New Mexico (46.1 percent) and Rhode Island (32 percent). The top cigarette smuggling states in the other direction — that is, exporters — include New Hampshire (28.7 percent), Idaho (24.2 percent), Delaware and Virginia (22.6 percent and tied for third) and Wyoming (21 percent). For every 100 cigarettes consumed in New Hampshire in 2013, an additional 28-plus were smuggled out.”

Author
Todd Nesbit is assistant professor of economics at the College of Charleston.