Today's Weather
The Ghiorse Factor

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.

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

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.

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)

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)

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)

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)

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)

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)

Enjoy this post? Share it with others.

Sign Up for the Daily Eblast

I want to follow on Twitter

I want to Like on Facebook