Three out of every five cigarettes that are smoked in New York State were smuggled into the state, according to a study by the Mackinac Center for Public Policy. The rate of cigarette smuggling in New York was the highest in the country.
The state of New Hampshire had the most cigarettes that were smuggled out of state, with 26.8 percent of its tobacco being brought out of the state. The reason for the high rate of smuggling was due to the high rate of taxes for cigarettes in the states surrounding New Hampshire.
In 2010, it was estimated that the State of New York lost at least $1 Billion in tax revenue from cigarette smuggling.
Source: Catherine Rampell, “Cigarette Taxes vs. Cigarette Smuggling,” New York Times, Economix Blog, January 10, 2013.