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RI Black Market Tobacco Sales Rampant, Among Worst in Nation

Monday, December 23, 2013

 

Up to 40 percent of cigarettes smoked in Rhode Island are smuggled into the state according to one estimate.

That analysis comes from the Mackinac Center for Public Policy, a nonpartisan research group that draws a direct correlation between tobacco taxes and the drug's illicit distribution.


Related Slideshow:
Black Market Cigarettes in New England

Scholars at Michigan's Mackinac Center for Public Policy have analyzed tobacco sales data to estimate smuggling rates for each state.

The report uses 2011 data and finds that smuggling rates generally rise in states after they adopt large cigarette tax increases. Smuggling rates have dropped in some states, however, often where neighboring states have higher cigarette tax rates.

This means that people are buying cigarettes in lower-taxed states legally, and bringing them into nearby higher-taxed states to sell at a lower price with higher profits.

See which New England states have the highest percentage of smuggled cigarettes in the slides below:

Source: Mackinac Center for Public Policy; Tax Foundation.

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6. New Hampshire

National Rank (1 is Most): 47

2011 Consumption Smuggled*: -26.8%

2006 Consumption Smuggled*:-29.7%

2011 Cigarette Tax Rate (Per Pack): $1.68

 

*Positive is inflow (smuggled in), Negative is outflow (smuggled out)

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5. Vermont

National Rank (1 is Most): 40

2011 Consumption Smuggled*: -16.9%

2006 Consumption Smuggled*: 4.5%

2011 Cigarette Tax Rate (Per Pack): $2.24

 

*Positive is inflow (smuggled in), Negative is outflow (smuggled out)

Prev Next

4. Maine

National Rank (1 is Most): 23

2011 Consumption Smuggled*: 13.7%

2006 Consumption Smuggled*: 16.6%

2011 Cigarette Tax Rate (Per Pack): $2.00

 

*Positive is inflow (smuggled in), Negative is outflow (smuggled out)

Prev Next

3. Massachusetts

National Rank (1 is Most): 19

2011 Consumption Smuggled*: 18.1%

2006 Consumption Smuggled*: 17.5%

2011 Cigarette Tax Rate (Per Pack): $2.51

 

*Positive is inflow (smuggled in), Negative is outflow (smuggled out)

Prev Next

2. Connecticut

Overall Rank (1 is Most): 14

2011 Consumption Smuggled*: 22.2%

2006 Consumption Smuggled*: 12.3%

2011 Cigarette Tax Rate (Per Pack): $3.00

 

*Positive is inflow (smuggled in), Negative is outflow (smuggled out)

Prev Next

1. Rhode Island

Overall Rank (1 is Most): 5

2011 Consumption Smuggled*: 39.8%

2006 Consumption Smuggled*: 43.2%

2011 Cigarette Tax Rate (Per Pack): $3.46

 

*Positive is inflow (smuggled in), Negative is outflow (smuggled out)

 
 

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Comments:

Odd Job

let's get it above 50%. starve the beast




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