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The advanced notice of proposed rulemaking sought public comment on these topics and offered newly published estimates of one possible policy scenario for a nicotine product standard

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Other peer-reviewed studies provide support for these findings.[3] A 2018 study in Public Finance Review examined littered packs of cigarettes across 132 communities in 38 states, finding that 21 percent of packs did not have proper local stamps.[4] As noted by LaFaive and Nesbit, primary authors of the Mackinac Center study, smuggling comes in different forms: casual smuggling, where smaller quantities of cigarettes are purchased in one area and then transported for personal consumption, and commercial smuggling, which is large-scale criminal activity that can involve counterfeit state tax stamps, counterfeit versions of legitimate brands, hijacked trucks, or officials turning a blind eye.[5] The Mackinac Center has cited numerous examples over the many editions of this report, including stories of a Maryland police officer running illicit cigarettes while on duty, a Virginia man hiring a contract killer over a cigarette smuggling dispute, and prison guards caught smuggling cigarettes into prisons

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Each year, in partnership with scholars at the Mackinac Center for Public Policy, we estimate cigarette smuggling rates for each US state and the District of Columbia.[1] The most recent report uses 2022 data and finds a strong positive relationship between cigarette smuggling and tax rates across the country