Increased cigarette taxes in New York City evident in discarded packs strewn about city streets

In a recent study led by Kevin Schroth, a researcher at Rutgers University's Institute for Nicotine and Tobacco Studies, it has been discovered that high taxes on cigarettes in New York City may not be as effective in reducing cigarette sales as previously thought.

The study, conducted to understand the impact of high taxes on cigarette sales and smoking rates in the city, found that most of the discarded cigarette packs collected in New York City were brought in from states with lower taxes on the product. Georgia emerged as the primary source, making up 27.8% of the littered packs, followed by Virginia with 20.6%.

The proportion of packs with the proper New York City tax stamp has decreased significantly since 2011 and 2015, according to the Rutgers University study. Of 252 discarded cigarette packs found on the streets across the five boroughs, just 17% had the proper New York City tax stamp.

This situation is an example of "arbitrage," where people profit by purchasing in a cheaper location and selling in a more expensive one. Customers signal their interest in the tax-free cigarettes by using code phrases like "special price." Schroth stated that this practice allows smugglers and their customers to split more than $6 in savings on each pack of cigarettes.

The city's health departments have reported a decrease in smoking rates, with the prevalence of smoking halving from 22% in 2002 to 8.4% in 2023. However, researchers have noted limitations in the study, including uncertainty about whether littered packs are representative of all packs smoked in New York City.

People who litter may be more likely to have bought untaxed cigarettes, according to the study's researchers. The smoking rate dropped below 10% for the first time in 2023, according to the state department.

The city's sheriff's office conducts tobacco inspections, seizing illegal or unlicensed tobacco products, issuing violations, and making arrests where appropriate. The New York State cigarette tax is very high at $4.35 per pack, while other states like North Carolina or Virginia have significantly lower tax rates, making them common sources for smuggled cigarettes.

Despite these findings, it is important to note that high taxes on cigarettes in New York City remain among the highest in the United States, contributing to the city's efforts to reduce smoking rates and improve public health. The study serves as a reminder of the complexities involved in tobacco control policies and the ongoing need for research and enforcement to combat illicit cigarette sales.

Increased cigarette taxes in New York City evident in discarded packs strewn about city streets