2009 State Cigarette Excise Taxes

Bookmarks:      State Cigarette Excise Taxes:  2007                                        State Cigarette Excise Taxes:  2006

State Cigarette Excise Taxes-2007

Cigarette Excise Tax Rates (in $) and State Ranking
Cigarette Excise Tax Facts

 Cigarette excise tax facts

• The federal cigarette excise tax is $0.39 (as of January 1, 2006).
• At least ten states, Alaska, Arizona, California, Colorado, Maryland, Massachusetts, Michigan, Oklahoma, Oregon and Utah, use cigarette excise tax revenue to fund their tobacco control programs.
• The U.S. Center for Disease Control & Prevention estimates that smoking-caused health costs total $7.18 per packed sold and consumed in the United States.
• According to the CDC, for 1997-2001, cigarette smoking was estimated to be responsible for $167 billion in annual health-related economic losses in the United States ($75 billion in direct cost and $92 billion in lost productivity), or about $3,701 per adult smoker.
• Adolescents and young adults are more responsive than adults to changes in cigarette prices.
• Increasing a cigarette excise tax can result in stockpiling of cigarettes prior to the implementation of the tax and a temporary drop in sales immediately following the tax increase.

Sources:

NCSL Staff Research, March 2007.

Campaign for Tobacco-Free Kids, State Cigarette Excise Tax Rates & Rankings, March, 2007.

Federation of Tax Administrators, State Excise Tax Rates on Cigarettes. January 2007.

State Legislated Actions on Tobacco Issues: 2005; The American Lung Association.

Centers for Disease Control and Prevention, Fact Sheet: Economic Facts About U.S. Tobacco Use and Tobacco Production. Updated March 2007

Reducing Tobacco Use: A Report of the Surgeon General, Department of Health and Human Services; Office of Smoking and Health; Centers for Disease Control and Prevention, 2000.

Footnotes:

1. Additional $0.20 increase effective 7/1/07.
2. Effective 5/1/07.
3. Additional $0.20 each year until 2011.
4. Includes $0.75 Health Impact fee.
5. Additional $0.20 increase effective in 7/1/07.

State Cigarette Excise Taxes: 2006

Cigarette Excise Tax State Ranking
Cigarette Excise Tax Facts

Cigarette Excise Tax State Ranking As of July 2006
Rhode Island	2.46		New Hampshire	.80
New Jersey	2.40		Kansas	.79
Washington	2.025		Wisconsin	.77
Maine	2.00		Utah	.695
Michigan	2.00		Nebraska	.64
Montana	1.70		Wyoming	.60
Alaska	1.60		Arkansas1	.59
Hawaii	1.60		Idaho	.57
Massachusetts	1.51		Indiana	.555
Connecticut	1.51		Delaware	.55
New York2	1.50		West Virginia	.55
Texas3	1.41		South Dakota	.53
Pennsylvania	1.35		North Dakota	.44
Ohio	1.25		Alabama4	.425
Minnesota	1.23		Georgia	.37
Vermont	1.19		Iowa	.36
Arizona	1.18		Louisiana	.36
Oregon	1.18		Florida	.339
Oklahoma	1.03		North Carolina	.35
District of Columbia	1.00		Virginia	.30
Maryland	1.00		Kentucky5	.30
Illinois6	.98		Tennessee7	.20
New Mexico	.91		Mississippi	.18
California	.87		Missouri8	.17
Colorado	.84		South Carolina	.07
Nevada	.80

Cigarette excise tax facts

• State excise taxes range from $0.07 per pack in South Carolina to $2.46 per pack in Rhode Island.

• The federal cigarette excise tax is $0.39 (as of January 1, 2006).

• At least ten states, Alaska, Arizona, California, Colorado, Maryland, Massachusetts, Michigan, Oklahoma, Oregon and Utah, use cigarette excise tax revenue to fund their tobacco control programs.

• The U.S. Center for Disease Control & Prevention estimates that smoking-caused health cost total $8.44 per packed sold and consumed in the United States

• Adolescents and young adults are more responsive than adults to changes in cigarette prices.

• Increasing a cigarette excise tax can result in stockpiling of cigarettes prior to the implementation of the tax and a temporary drop in sales immediately following the tax increase.

Sources:

NCSL Staff Research

Federation of Tax Administrators, State Excise Tax Rates on Cigarettes. January 2006.

State Legislated Actions on Tobacco Issues: 2005; The American Lung Association.

Reducing Tobacco Use: A Report of the Surgeon General, Department of Health and Human Services; Office of Smoking and Health; Centers for Disease Control and Prevention, 2000.

Footnotes:

1.  Dealers pay an additional fee of $1.25/1,00 cigarettes
2.  Counties and cities may impose an additional tax up to $1.50 per pack
3.  Effective Jan 1, $0.08, then, $0.55 on July, 06; with another increase of $0.25 in Jan., 07; and the final increase of $0.25 in Jan., 08
4.  Counties and cities may impose an additional tax up to $0.06 per pack
5.  Dealer pay addition enforcement and administrative fee of $0.1 per pack
6.  Counties and cities may impose an additional tax of $0.10 per pack
7.  Counties may impose an additional tax of $0.1 and dealers pay an additional enforcement fee of $0.05 per pack
8.  Counties and cities may impose an additional tax up to $0.07 per pack