PHOENIX — Arizona ranks second in the nation for smokers who found a way around a state tax on their cigarettes, a study said.
A study by the Michigan-based Mackinac Center for Public Policy said that, as of 2012, 51.5 percent of the cigarettes smoked in Arizona were purchased in ways that avoid paying a state sales tax of $2 per pack, a 19 percent jump from 2006. There are several places where these “smuggled cigarettes” are sold.
“Indian reservations, Mexico and what we think, but have not tagged a number for yet, is bonded warehouses,” said Michael LaFaive, director of Fiscal Policy for the Mackinac Center for Public Policy. “A bonded warehouse is sort of a weigh station for products that come into the country from overseas.”
LaFaive said that one of these warehouses is believed to be located near Phoenix.
“We think that about 19 percent of the smuggling that occurs inbound into Arizona is from your border with Mexico,” LeFaive said. “However, we think that a portion of that, which is captured as international smuggling, might actually be from bonded warehouses.”
Todd Nesbit, LeFaive’s assistant, said a majority of the “smuggled cigarettes” are purchased as a direct result of Arizona’s cigarette sales tax.
LaFaive said there are two ways to reduce the number of cigarettes being “smuggled” into Arizona: Doing away with the sales tax or getting people to quit smoking.
New York topped Arizona in the survey, with nearly 57 percent of the cigarettes being smuggled into that state. New York has a $4.35 per pack tax on cigarettes. New Mexico is right behind Arizona, followed by Washington, Wisconsin and California, respectively.
- 7 common ways to get sued by your employees
- Why it might be time to upgrade your toilet
- Arizona teachers are building a better future by using technology in the classroom
- How to make summer reading fun for the whole family
- How to find relief for chronic joint pain
- Can the NBA Lottery save the Suns?
- Skip Urgent Care: 5 ailments you can treat with telemedicine
- Skin Cancer in Arizona: Stats, facts and new immunotherapy drugs making strides
- Distracted walking injuries end up not so funny
- Scary situations: 5 quick tips before you let a contractor in your home
- Four ways telemedicine is changing the health care industry
- 5 mistakes homeowners make in the spring
- Three rivers run through it: Exploring Arizona's waterways
- Smart home basics: things you need to know to get started
- 5 Surprising things causing back pain
- Arizona agriculture is a $17.1B industry
- Timeline: Arizona's roots in brewing history
- 5 reasons to love the D-backs this season
- Tips for taking your home entertainment experience to the backyard
- Tech-related injuries your parents never experienced
- Workers comp: Signs your co-worker could be a fraud
- Who's the real founder of America's pastime?
- Epidemic rising? What you need to know about Alzheimer's in Arizona
- 5 unforgettable Wooden Award winners
- Family and hard work are keys to success of modern dairy farmers
- Genetic testing could hold answers for colon cancer survival
- Cold beers and baseball: A beer lover's guide to Spring Training
- Telecommuting: 5 tips to make it work for employers and employees
- See how top CFOs feel about economic growth in the Valley
- Migraine myths that keep patients from effective treatments