Monday, April 22, 2024
Hawai'i Free Press

Current Articles | Archives

Wednesday, May 10, 2017
How High Are Cigarette Taxes in Your State?–Hawaii Ranks 5th
By Tax Foundation @ 12:50 PM :: 5246 Views :: Hawaii Statistics, Taxes

How High Are Cigarette Taxes in Your State?

by Morgan Scarboro, Tax Foundation, May 10, 2017 

For this week’s map, we look at state cigarette tax rates across the country, which are levied on top of the $1.0066 federal rate per 20-pack of cigarettes. As of 2014, taxes accounted for almost half of the retail cost of a pack of cigarettes.

Related: How Stable is Hawaii Cigarette Tax Revenue?

The average state tax rate is $1.68 per pack. New York, however, remains in the top spot with the highest state rate in the country at $4.35 per pack. Connecticut ($3.90), Rhode Island ($3.75), and Massachusetts ($3.51) follow closely behind. There is wide variation in cigarette tax rates – Missouri, for instance, levies the lowest tax in the country at $0.17. Virginia ($0.30), Georgia ($0.37), North Dakota ($0.44), and North Carolina ($0.45) levy similarly low rates.

Cigarette Taxes

Not included in this map but important to remember is that local cigarette taxes also apply in some states. In Chicago, combined state, county, and city taxes add $6.16 to the price of a pack of cigarettes. In New York City, smokers pay $5.85 in taxes alone on a pack of cigarettes. 

Cigarette taxes are sometimes touted as a fix for large, structural problems when states face revenue shortfalls. However, cigarette tax revenue is declining as fewer Americans smoke, meaning cigarette tax revenue is not a reliable funding source for important policy priorities. To illustrate this point, we have built an interactive web tool that allows taxpayers to see how cigarette tax revenues have changed since 1955.

Revenues can also suffer from intrastate cigarette smuggling, which we’ve covered extensively.

Broad-based, low-rate taxes are the proper way to correct structural problems in a state’s tax code, not high rates on already narrow bases.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT