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You are here: Home / Taxes / Cigarette tax revenues get snuffed out

Cigarette tax revenues get snuffed out

February 1, 2010 By WRN Contributor

Smokers are apparently finding ways to avoid Wisconsin’s cigarette tax.

It’s now estimated the 75-cent a pack tax that took effect in September will generate $92 million less revenue for the state than originally projected. Wisconsin Taxpayers Alliance President Todd Berry says that’s not a big surprise. He says the hike gave the Badger State one of the highest tobacco taxes in the nation, and also the Midwest.

As a result, he says many smokers are likely crossing the borders to neighboring states with a lower tax or are finding ways to buy cigarettes online. Berry also suspects a black market for tobacco products has cropped up, with many people trying to find cheaper smokes.

Wisconsin’s cigarette tax is sixth highest in the country.

AUDIO: John Colbert reports (:39)

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Filed Under: Taxes



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