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tax free cigarettes New York Losing Tax Revenues
Concerned about the booming trade in online cigarette sales, New York state officials have begun using a variety of techniques to clamp down on the trade, saying New York City alone is losing more than $75 million a year in uncollected tax revenues because of the sales.

The Highest State Cigarette Taxes:
Massachusetts $1.51 New York $1.50 New Jersey $1.50 Washington $1.43	Rhode Island $1.32 Michigan $1.25 Hawaii $1.20 Pennsylvania $1.00

tax free cigarettes Stung by criticism that New York is not doing enough to encourage people to quit smoking, health officials are pledging to wage a stronger anti-tobacco campaign. The majority of the anti-smoking commercials aired across New York are produced by other states that do not always resonate with New Yorkers, health officials said. This year, the state is polling focus groups to see how they react to certain advertisements.

New York City Cigarette Taxes
According to the NY city's estimates, the tax increase would raise $249 million even as it caused sales to drop by 165 million packs, or nearly 50 percent. That would cost the state, which also taxes cigarettes, $247.5 million; the loss could be partly made up if people went to other parts of the state, instead of, say, New Jersey, to buy their cigarettes.

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Lawmakers approved the largest cigarette tax hike in state history. The 75-cent hike brings Massachusetts' cigarette tax up to $1.51 per pack, the highest of any state in the country.

Maine's cigarette tax is among the nation's highest. Effective Oct. 1, 2001, Maine's excise tax on cigarettes increased from 74 cents to $1 per pack of 20 cigarettes. The increase made cigarette taxes the state's third largest revenue line, behind the individual income and sales tax lines. Each time Massachusetts lawmakers have increased cigarette taxes during the past two decades, the state has enjoyed an injection of new cash, according to an Associated Press review of revenue statistics.

Each high is followed by a steady but small decline. In 1985, two years after lawmakers hiked the cigarette tax from 21 cent to 26 cents, the state pulled in nearly $175 million in tobacco excise taxes. By 1992, revenues had fallen 21 percent, to $140 million. Lawmaker then raised the cigarette tax to 51 cents, sparking another spike in revenues up to $237 million in 1994, the first full year the tax was in effect. Three years later, revenues had slipped to $233 million.

Anti-smoking groups called the move a scheme that keeps those smokers who may have been convinced to quit with the new higher taxes to remain as tobacco users. "We're concerned about anything that encourages tax avoidance," said Russell Sciandra, director of the Center for a Tobacco Free New York. "We support the tax increase because of the public health impact it will have in reducing tobacco use." Sciandra said he is also concerned that the new kiosk system will make it easier for teenagers to buy cigarettes.

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