(The Center Square) — New York remains one of the top states for inbound tobacco smuggling, according to a new report, which attributes the robust underground market to the state’s high tax burden and anti-smoking policies.
The nonpartisan Tax Foundation report ranked New York second behind California for inbound illegal tobacco smuggling, with an estimated revenue loss of more than $800,000 million in 2023, the latest year for which data is available. While the Empire State dropped from its No.1 ranking, the report estimates that 51.8 % of the cigarettes consumed in the state still come from the illegal market.
The report’s authors said the move by New York and other Northeast states to raise cigarette taxes and ban certain tobacco products has made cigarette smuggling both a national problem and a lucrative criminal enterprise…