UPDATE Tobacco Tax Increases = High Tobacco Smuggling. Texas #10.

The vitcims of tobacco smuggling:

  • Consumers, “who pays full price for the cigarettes”
  • Texas Tax Coffers/Taxpayers – no Texas tax revenue is collected on the sale

Houston Chronicle | Quarter of Texas cigarettes are from smugglers avoiding taxes

informed:intel on January 19, 2017:

The Tax Foundation  ranks the states based on the portion of cigarette smuggling in comparison to the state tobacco taxes. How the states measure up:

  • #1 NY has 55.4% of the cigarettes consumed, are smuggled cigarettes
  • #10 TX has 25.9%of the cigarettes consumed, are smuggled cigarettes
  • In 2013, MA raised its cigarette tax by $1, smuggling rate increased by 12% t 29.3%, making it #7
  • TX smuggled cigarette rate has increased 244% since 2006