New York Has Highest Rate of Smuggled Cigarettes in the Nation

As addicted New York cigarette smokers stress about the high taxes on tobacco products, there are many people throughout the city that smuggle in low cost cigarettes from surrounding states.

In fact, New York has the most smuggled cigarettes in the nation, but this makes sense considering New York has the highest cigarette taxes in the country as well.

Although the intent was to increase revenues and create economic stability, the rising taxes have led to a fluctuating economy and growth in criminal activity.

Approximately 58 percent of the total cigarette market in the state was from smuggled cigarettes in 2013, according to Iohud.

New York’s cigarette tax is at $4.35 a pack, and New York City has its own $1.50 tax per pack. Since 2006, cigarette smuggling has increased by 62 percent.

“Public policies often have unintended consequences that outweigh their benefits,” Tax Foundation economist Scott Drenkard said in a statement. “High tax rates on cigarettes have led to unreliable revenue and increased criminal activity.”

Last March, Gov. Andrew Cuomo began a “Cigarette Strike Force” of state, local and federal officials to limit bogus and untaxed tobacco products from coming into New York

In fifteen states, smuggled cigarettes made up 20 percent of the sales. After New York, Arizona (49.3 percent), Washington (46.4 percent), New Mexico (46.1 percent) and Rhode Island (32.0 percent) rounded out the top five.

The highest outbound smuggling rates were in New Hampshire (28.6 percent), Idaho (24.2 percent), Virginia (22.6 percent), Delaware (22.6 percent), and Wyoming (21.0 percent).

New York has tried to crack down on cigarette smuggling, but with the product being legal and easily accessible this proves to be very difficult.

Despite having immense difficulty controlling the smuggled cigarettes from coming into the state, health officials say there has been a drop in smoking among young people. A report from 2013 shows that high school smoking has decreased 56 percent since 2000, and 70 percent in middle school youth.