| So, why do you
think cigarettes cost so much? There are two main reasons for that:
1. High State Cigarette Taxes (you can check
out the chart below for Cigarette Excise Taxes).
2. Multi-billion dollar tobacco settlement against
major cigarette manufacturers: In November 1998, the attorneys
general of 46 states entered into a landmark settlement. As of
April 2002, 38 manufacturers have become "participating manufacturers"
by signing the Master Settlement Agreement.
Cigarette taxes in the US are determined by each individual state.
Consumers in states such as Massachusetts, New Jersey, New York,
and Washington pay premium prices for cigarettes because of the
individual state taxes. Total tax payable per carton of cigarettes
in these states is between $14.00 and $15.50! Below you can find
information how to find cigarette sales online.
Taxes in Kentucky are a mere 30c per carton. In North Carolina
it is 50c per carton. Below you will find a listing of the approximate
Cigarette Excise Taxes per state (Source: Bureau
of Alcohol, Tobacco, and Firearms. Date of Report: July 7, 2003).
It is your own responsibility as a consumer to pay your state's
tax. Big part of this money goes to state's medical system. High
cigarettes taxes are also used as a health deterrent mechanism to
encourage people not to smoke.
| STATE |
TAX RATE
($ per carton) |
RANK |
STATE |
TAX RATE
($ per carton) |
RANK |
| Alabama (1) |
1.65 |
47 |
Nebraska |
6.40 |
24 |
| Alaska |
10 |
12 |
Nevada |
3.50 |
39 |
| Arizona |
11.80 |
11 |
New Hampshire |
5.20 |
32 |
| Arkansas (2) |
5.90 |
26 |
New Jersey |
20.50 |
1 |
| California |
8.70 |
19 |
New Mexico |
9.10 |
18 |
| Colorado |
2 |
43 |
New York (1) |
15.00 |
5 |
| Connecticut |
15.10 |
3 |
North Carolina |
.50 |
49 |
| Delaware (3) |
2.40 |
41 |
North Dakota |
4.40 |
34 |
| Florida |
3.39 |
40 |
Ohio |
5.50 |
29 |
| Georgia |
3.70 |
36 |
Oklahoma |
2.30 |
42 |
| Hawaii (3) |
13.00 |
7 |
Oregon |
12.80 |
8 |
| Idaho |
5.70 |
27 |
Pennsylvania |
10.00 |
12 |
| Illinois (1) |
9.80 |
17 |
Rhode Island |
17.10 |
2 |
| Indiana |
5.55 |
28 |
South Carolina |
.70 |
48 |
| Iowa |
3.60 |
37 |
South Dakota |
5.30 |
31 |
| Kansas |
7.90 |
20 |
Tennessee (1) (2) |
2.00 |
43 |
| Kentucky (2) |
.30 |
50 |
Texas |
4.10 |
35 |
| Louisiana |
3.60 |
37 |
Utah |
6.95 |
23 |
| Maine |
10.00 |
12 |
Vermont |
11.90 |
10 |
| Maryland |
10.00 |
12 |
Virginia (1) |
.25 |
51 |
| Massachusetts |
15.10 |
3 |
Washington |
14.25 |
6 |
| Michigan |
12.50 |
9 |
West Virginia |
5.50 |
29 |
| Minnesota |
4.80 |
33 |
Wisconsin |
7.70 |
21 |
| Mississippi |
1.80 |
45 |
Wyoming |
6.00 |
25 |
| Missouri (1) |
1.70 |
46 |
Dist. of Columbia |
10.00 |
12 |
| Montana |
7.00 |
22 |
|
|
|
| |
|
|
U. S. Median |
59.0 |
|
Revised, July 7, 2003
Source: Compiled by FTA from various sources
(1) Counties and cities may impose an additional tax on a pack of
cigarettes in AL, 1¢ to 6¢; IL, 10¢ to 15¢; MO, 4¢ to 7¢; NYC $1.50;
TN, 1¢; and VA, 2¢ to 15¢.
(2) Dealers pay an additional enforcement and administrative fee
of 0.1¢ per pack in KY and 0.05¢ in TN. In AR, a $1.25/1,000 cigarette
fee is imposed.
(3) Tax rate in DE is scheduled to increase to 55¢ per pack on August
1, 2003; and in HI is scheduled to increase to $1.40 per pack on
July 1, 2004.
Besides state tobacco taxes, a federal tax of $3.90 per carton
is paid at the point of manufacturing. This tax is supposed to be
paid on all cigarettes sold in the US, including those sold from
Native American reservations, which are almost all exempt from state
taxes. The sales tax column includes only state sales tax, and does
not include federal tax. Several states, such as California and
New York, also have local sales taxes.
So, how can I save money finding cigarette sales online? Find out
in the next section.
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