Tax THE. Burden ON TOBACCO

Transcription

1 THE Tax Burden ON TOBACCO HISTORICAL COMPILATION VOLUME 49, 2014

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3 THE TAX BURDEN ON TOBACCO Historical Compilation 2014 i

4 ACKNOWLEDGMENTS This is the 65 th version of the annual compendium on tobacco revenue and industry statistics known as The Tax Burden on Tobacco. The first volume was produced in 1949 by the Virginia-based Tobacco Tax Council under the name Cigarette Taxes in the United States. In 1966, the Council gave the annual its current name. From 1982 through 1998, The Tobacco Institute published the book. The economic consulting firm Orzechowski and Walker has produced The Tax Burden on Tobacco since This volume was prepared with the financial support of Altria Client Services, the Lorillard Tobacco Company, and Reynolds American Services Company. This volume could not have been produced without the cooperation of tobacco tax administrators in the 50 states and the District of Columbia, and the U.S. Department of Treasury s Alcohol and Tobacco Tax Trade Bureau. The data they supply and confirm help make The Tax Burden on Tobacco the definitive source for tobacco tax information. We thank them for their help. We also thank the thousands of cigarette retailers who have taken the time to respond to our annual price survey. It has come to our attention that we had been using preliminary OTP revenue data for California (Table 12). Accordingly, the data for FY 1989 to 2013 have been revised. ii

5 Table Of Contents Acknowledgments... Tax Year Highlights... Page ii iv Charts State Cigarette Excise Tax Rates... v Mounting Burden of Federal and State Cigarette Taxes The Growth of Cigarette Excise Taxes Compared to Farm Value of Domestic Leaf Tobacco Used in... 2 U.S. Total Per Capita Cigarette Consumption Tables 1. Federal, State, and Local Tobacco Taxes A. Federal Tax Collections on Tobacco B. Federal Tax Collections on Tobacco, Federal Fiscal Years Federal Cigarette Tax Collections and Per Capita Consumption Number of States Taxing Tobacco Net State Tobacco Tax Collections State Cigarette Tax Rate Changes Since July 1, State Cigarette Tax Rates Gross State Cigarette Taxes Net State Cigarette Tax Collections State Tax-Paid Cigarette Sales Tax-Paid Per Capita Sales States Which Tax Both and Tobacco A. State Tax Rates on Smokeless Tobacco B. State Tax Rates on All Tobacco Cigarette Taxes as a Percentage of Retail Price Cigarette Taxes as a Percentage of Weighted Average Price Before Taxes General Sales or Gross Receipts Tax Applied to Estimated State General Sales Tax Collections on the Sale of County and City Tobacco Tax Collections For Fiscal Years A. Local Excise Tax Per Pack, Fiscal Years 2000 to History of Federal Tax Rates on Settlement Payments Received by State (in Millions) Historical Cigarette Tax Data (by States) Historical Cigarette Tax Data for All Taxing States iii

6 Tax Year Highlights Federal The federal excise on cigarettes, $1.01 per pack, grossed $13,445,284,687 in tax revenue for fi scal year FY State During FY 2014, state cigarette excise taxes ranged from 17 per pack in Missouri to a high of $4.35 per pack in New York. The weighted average state cigarette excise tax rate was per pack. This average does not include the $1.01 federal excise tax. For FY 2014, the states reaped $16,563,684,714 in gross cigarette excise tax revenues. 12,969,515,448 state tax-paid packs were sold in FY U.S. per capita consumption of cigarettes, based on TTB volume data, was 42.3 packs for FY The average retail price of a package of 20 cigarettes (full-priced brands) as of November, 2014, including federal and state excise taxes, ranged from a low of $ 5.06 in Missouri to a high of $10.56 in New York. The average retail price of a package of 20 cigarettes (full-priced brands) as of November, 2014, was $6.28, including federal, state, and municipal excise taxes. The average retail price of a package of 20 cigarettes (full-priced brands and generic brands weighted by share) as of November, 2014, was $5.84, including federal, state, and municipal excise taxes. Federal and state excise taxes accounted, on average, for 43.8 percent of the retail price of cigarettes. States also received an estimated $8.5 billion in tobacco settlement payments in FY States also generated an estimated $3,996,809,000 in general sales tax revenues from the sale of cigarettes in FY Forty-three states levy general sales taxes on the retail sale of cigarettes. Municipal Municipal cigarette taxes were levied in seven states during FY 2014, ranging from 1 to $3.00 per pack. 602 cities, towns, and counties imposed cigarette taxes, grossing an estimated $432.3 million in the FY ending June 30, Total Federal, state, and municipal excise taxes on cigarettes for the FY ending June 30, 2014, amounted to nearly $30.4 billion, or approximately $96.16 per capita. All cigarette excise and sales taxes and tobacco settlement payments totaled $41.6 billion in FY Federal and state excise taxes on OTP added $2.5 billion, for a total of $44.0 billion in FY iv

7 Cigarette Excise Tax Rates (As of January 1, 2015) AK $2.00 WA $3.025 OR $1.31 CA 87 NV 80 ID 57 UT $1.70 AZ $2.00 MT $1.70 WY 60 CO 84 NM $1.66 ND 44 SD $1.53 NE 64 KS 79 TX $1.41 OK $1.03 MN* $3.426 IA $1.36 MO 17 AR $1.15 LA 36 WI $2.52 IL $1.98 MS 68 IN 99.5 TN 62 AL 42.5 MI $2.00 KY 60 GA 37 OH $1.25 WV 55 SC 57 VA 30 NC 45 PA $1.60 NY $4.35 VT $2.75 MD $2.00 NJ $2.70 DE $1.60 DC* $2.90 NH $1.78 HI $3.20 FL $1.339 *Minnesota sells cigarette stamps for $3.426 per pack. This includes a cigarette excise tax of $2.90, plus a wholesaler fee in lieu of a retail sales tax. The District of Columbia also includes a wholesaler fee in lieu of a retail sales tax. ME $2.00 MA $3.51 CT $3.40 RI $3.50 v

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9 Mounting Burden of Federal and State Cigarette Taxes ,000 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 17,347 17,000 17,000 16,564 16,500 16,500 16,000 16,000 15,500 15,500 15,000 15,000 14,500 14,500 14,000 14,000 13,500 13,500 13,445 13,000 13,000 12,500 12,500 12,000 12,000 11,500 11,500 11,000 11,000 10,500 10,500 10,000 9,500 Federal 13,445 State 16,564 10,000 9,500 9,000 9,000 8,500 8,500 8,000 8,000 7,500 7,500 7,000 7,000 6,500 6,500 6,000 6,000 5,500 5,500 5,000 4,500 STATE CIGARETTE TAXES 5,000 4,500 4,000 4,000 3,500 3,500 3,000 3,000 2,500 2,500 2,000 2,000 1,500 1,500 1, FEDERAL CIGARETTE TAXES 1,

10 33,000 The Growth of Cigarette Excise Taxes Compared to Farm Value of Domestic Leaf Tobacco Used in 33,000 32,500 32,000 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 32,500 32,000 31,500 31,500 31,000 31,000 30,500 30,000 30,500 30,441 30,000 29,500 29,500 29,000 29,000 28,500 28,500 28,000 28,000 27,500 27,500 27,000 27,000 26,500 26,500 26,000 26,000 25,500 25,500 25,000 25,000 24,500 24,500 24,000 24,000 23,500 23,500 23,000 23,000 22,500 22,500 22,000 22,000 21,500 21,500 21,000 21,000 20,500 20,500 20,000 20,000 19,500 19,500 19,000 19,000 18,500 18,500 18,000 18,000 17,500 17,500 17,000 17,000 16,500 16,500 16,000 16,000 15,500 15,500 15,000 15,000 14,500 14,500 14,000 14,000 13,500 13,500 13,000 13,000 12,500 12,500 12,000 12,000 11,500 11,500 11,000 11,000 10,500 10,500 10,000 10,000 9,500 9,500 9,000 9,000 8,500 8,500 8,000 8,000 7,500 7,500 7,000 7,000 6,500 6,500 6,000 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 FEDERAL, STATE, AND LOCAL CIGARETTE EXCISE TAXES FARM VALUE OF DOMESTIC LEAF TOBACCO USED IN CIGARETTES 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, ,

11 U.S. Total Per Capita Cigarette Consumption PACKAGES PACKAGES

12 Table 1 Federal, State, and Local Tobacco Taxes Selected Periods Since 1863 (in Thousands of Dollars) Year Ending June 30, 2014 Year Ending June 30, 2013 Percentage Change Through 2014 Federal excises: 13,445,284 14,166, % 311,746,645 tobacco products 907,385 1,100, % 16,321,979 Total 14,352,669 15,267, % 328,068,624 % from cigarettes 93.7% 92.8% 95.0% State excises:* 16,563,685 16,757, % 382,483,425 tobacco products 1,588,355 1,529, % 18,262,797 Total 18,152,040 18,286, % 400,746,222 % from cigarettes 91.2% 91.6% 95.4% Local excises:** Total local tobacco revenue*** 431, , % 11,161,118 Aggregate: 30,440,675 31,349, % 705,391,188 tobacco products 2,495,740 2,629, % 34,584,776 Total 32,936,415 33,979, % 739,975,964 % from cigarettes 92.4% 92.3% 95.3% *The fi rst state cigarette tax was imposed in **The fi rst municipal cigarette tax was imposed in ***Refl ects mostly cigarette revenues. Estimate based on Alcohol and Tobacco Tax Trade Bureau data. 4

13 Table 2A Federal Tax Collections on Tobacco, Selected Fiscal Years (Ending June 30) Year All Tobacco ($000,000) ($000,000) Percent of Total * 0.1% ** , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , *Only $15,000 **Only $21,000 Note: Percentage split between cigarettes and OTP revised to refl ect IRS estimates beginning in

14 Year Table 2B Federal Tax Collections on Tobacco Federal Fiscal Years (Ending September 30) All Tobacco ($000,000) ($000,000) Percent of Total , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Alcohol and Tobacco Tax and Trade Bureau Statistical Release: Tax Collections. Cigarette revenues estimated from TTB monthly tax volume tables. 6

15 Table 3 Federal Cigarette Tax Collections and Per Capita Consumption for Selected Years: Year Ending June 30 Rate Per 1,000 Collections ($000) 7 Consumption b (Million ) Per Capita 1865 $ ,117 2, ,953 2, a 7,921 7, ,262 50, , , , ,681 1, , ,768 1, , ,902 1, c 835, ,220 1, , ,274 1, , ,874 1, ,072, ,514 2, ,145, ,218 2, ,208, ,200 2, ,232, ,208 2, ,242, ,099 2, ,293, ,705 2, c 1,474, ,427 2, ,586, ,695 2, ,513, ,433 2, ,504, ,048 2, ,549, ,260 2, ,610, ,726 2, ,668, ,050 2, ,771, ,780 2, ,863, ,553 2, ,923, ,394 2, ,956, ,437 2, ,010, ,959 2, ,976, ,073 2, ,069, ,958 2, ,006, ,138 2, ,023, ,946 2, ,066, ,555 2, ,082, ,310 2, , ,666 2, ,149, ,577 2, ,151, ,623 2, ,221, ,735 2, ,383, ,881 2, ,261, ,294 2, ,434, ,118 2, ,279, ,256 2, ,374, ,546 2, ,356, ,117 2, ,604, ,765 2, ,488, ,328 2, ,496, ,235 2, c 3,424, ,821 2, ,749, ,739 2, ,442, ,418 2, ,430, ,024 2, ,752, ,310 2, ,446, ,816 2, ,237, ,750 2, ,069, ,730 2, c 4,754, ,530 2, ,043, ,314 2, c 5,528, ,602 1, ,599, ,000 1, ,716, ,360 1, ,679, ,200 1, ,743, ,583 1, ,559, ,267 1, ,193, ,758 1, c 6,230, ,500 1, ,080, ,000 1, c 8,036, ,200 1, ,798, ,500 1, ,702, ,800 1, ,566, ,400 1, ,480, ,196 1, ,267, ,702 1, ,890, ,360 1, c 8,512, ,852 1, ,513, ,205 1, ,101, , ,486, , ,166, , ,445, , a Rate shown above is based on wholesale price of more than $2.00 per 1,000. The rate on cigarettes selling wholesale at $2.00 or less per 1,000 was 54 cents per 1,000, but virtually all cigarettes were taxed under the higher rate of $1.08 per 1,000. b Figures prior to 1960 are based upon dollar collections; from 1960 on fi gures shown are tax paid removals. c The federal excise tax rate changed during the year. See Table 18 for details. Note: Consumption fi gures for are based on TTB and USDA estimates statistics based on TTB estimates.

16 Table 4 Number of States Taxing Tobacco Tobacco Year Years prior to 1936 are on calendar year basis; 1936 and later years are ending June 30. The District of Columbia is included from 1950 to the present. 8

17 Table 5 Net State Tobacco Tax Collections (in Thousands of Dollars) Year Total Tobacco Taxes From From Tobacco Percent From 1921 $ 324 $ 324 $ % ,115 1, ,030 2, ,634 4, ,376 6, ,442 8,252 1, ,707 9,457 1, ,523 10,183 1, ,500 11,992 1, ,947 14,457 1, ,997 17,614 1, ,694 19,112 1, ,215 22,427 1, ,014 31,072 1, ,289 47,017 2, ,590 52,963 2, ,452 52,752 2, ,970 56,140 2, ,157 95,296 2, , ,205 3, , ,533 3, , ,018 3, , ,540 4, , ,490 3, , ,901 5, , ,273 6, , ,656 6, , ,040 7, , ,691 7, , ,409 7, , ,311 9, , ,211 8, , ,650 8, , ,225 7, , ,310 8, , ,107 7, , ,819 8, , ,562 9, , ,936 26, ,027, ,144 32, ,106,025 1,085,646 20, ,153,290 1,132,804 20, ,235,069 1,212,320 22, ,351,361 1,327,081 24, ,590,007 1,566,627 23, ,665,709 1,643,039 22, ,939,629 1,915,776 23, ,126,459 2,101,828 24, ,398,470 2,368,077 30, ,624,329 2,594,586 29, ,936,050 2,904,379 31, ,124,916 3,092,844 32, ,257,165 3,225,175 31, ,317,295 3,284,660 32, ,461,653 3,428,902 32, ,517,287 3,483,349 33, ,667,509 3,632,746 34, ,658,240 3,621,625 36, ,752,975 3,714,417 38, ,892,805 3,850,631 42, ,965,566 3,922,180 43, ,165,310 4,117,825 47, ,282,689 4,232,982 49, ,375,554 4,314,268 61, ,503,725 4,422,062 81, ,642,241 4,545,529 96, ,878,642 4,768, , ,114,402 4,995, , ,594,377 5,440, , ,958,312 5,769, , ,131,894 5,924, , ,270,579 6,045, , ,768,216 6,506, , ,352,343 7,051, , ,456,797 7,122, , ,507,570 7,138, , ,814,516 7,403, , ,180,493 7,757, , ,588,719 8,122, , ,695,418 8,222, , ,927,869 8,433, , ,206,656 10,664, , ,236,067 11,627, , ,918,656 12,246, , ,509,878 13,753, , ,087,688 14,285, , ,520,651 15,621, , ,738,702 15,753, , ,765,169 16,532,671 1,232, ,499,008 17,107,803 1,391, ,248,573 16,797,713 1,450, ,051,413 16,527,479 1,523, ,917,852 16,334,249 1,583, Total 382,261, ,077,252 18,183, Note: Net collections represent gross taxes less amounts allowed for affi xing tax indicia. Years prior to 1936 are on calendar year basis; 1936 and later years are ending June 30. Adjustment has been made in totals to account for duplication which occurred when the reporting calendar year 1935 overlapped the reporting fiscal year. 9

18 Table 6 State Cigarette Tax Rate Changes Since July 1, 1950 Through January 1, 2015 Year First Enacted Rate July 1, 1950 Changes 10 Rate Jan. 1, 2015 AL /1/55; /1/59; /1/65; /1/67; /30/69; /28/80; /1/84; /1/04 AK* /1/59; 5-8 7/7/61; /1/85; /10/89; 29 -$ /1/97; $2.00 $1.00-$1.60 1/1/05; $1.60-$1.80 7/1/06; $1.80-$2.00 7/1/07 AZ /1/65; /22/68; /1/74; /1/84; /1/90; $ /29/94; 58 -$ /26/02; $1.18-$ /4/06 AR /9/51; 6-8 3/5/65; /21/69; /1/70; $1.15 3/22/71; /18/83; /1/91; /1/93; /1/93; /1/01; /1/03; 59 -$1.15 3/1/09 CA /1/59; 3-7 8/1/67; /1/67; /1/89; /1/94; /1/99 87 CO /1/64; 3-5 6/1/65; /1/73; /1/77; /1/78; /1/83; /1/86; /1/05 CT /1/56; /1/56; 3-5 7/1/61; 5-6 7/1/63; 6-8 7/1/65; /1/69; $ /23/71; /1/83; /1/89; /1/91; /1/93; /1/94; 50 -$1.11 4/3/02; $ /15/03; $1.51-$2.00 7/1/07; $ /1/09; $ /1/11 DE /1/53; /1/61; 5-7 8/1/65; /1/69; /1/71; $1.60 8/1/90; /1/91; /1/03; 55 -$1.15 8/1/07; $1.15-$1.60 8/1/09 DC /1/54; /1/66; /1/69; /1/72; /1/75; /1/76; $ /1/87; /1/91; /1/92; /1/93; 65 -$1.00 1/1/03; $1.00-$ /1/08; $2.00-$ /1/09; $2.50-$ /1/11 ; $2.86-$ /1/14 FL /1/63; /1/68; /1/71; /1/77; /1/86; /1/90; $ $ /1/09 GA /1/51; 3-5 7/1/55; 5-8 3/1/64; /1/71; /1/03 37 HI* /1/60; /1/65 (Rate is 40% of wholesale price); 60 7/1/93; /1/97; $ $1.00 2/1/98; $1.00-$1.20 9/30/02; $1.20-$1.30 6/30/03; $1.30-$1.40 6/1/04; $1.40-$1.60 9/30/06; $1.60-$1.80 9/30/07; $1.80-$2.00 9/30/08; $2.00-$2.60 7/1/09; $2.60-$3.00 7/1/10; $3.00-$3.20 7/1/11 ID /4/55; 4-5 7/1/59; 5-6 7/1/61; 6-7 5/19/63; /1/72; /1/87; /1/94; /1/03 IL /1/59; 4-3 6/8/60; 3-4 5/1/61; 4-7 8/1/65; 7-9 8/1/67; /1/69; $ /1/85; /1/89; /14/93; /16/97; /1/02; 98 -$1.98 7/1/12 IN /1/63; 4-6 5/1/65; /1/77; /1/87; /1/02; /1/07 IA /1/53; 3-4 7/4/59; 4-5 7/4/63; 5-8 7/1/65; /1/67, /13/71; $ /1/81; /1/85; /1/88; /1/89; /1/91; 36 -$1.36 4/1/07 KS /1/57; 4-6 4/1/64; 6-8 5/1/65; /1/70; /1/83; /1/85; /1/02; /1/03 KY /1/54; /1/60; /1/70; /1/05; /1/09 60 LA /1/70; /1/84; /1/90; /1/00; /1/02 36 ME /1/55; 5-6 7/1/61; 6-8 7/1/65; 8-9 7/1/67; /1/67; /1/69; $ /1/71; /1/74; /23/83; /15/84; /1/89; /1/91; /1/91; /1/97; 74 -$ /1/01; $1.00-$2.00 9/19/05 MD /1/58; 3-6 7/1/61; /1/75; /1/80; /1/91; $2.00 5/1/92; /1/99; 66 -$1.00 6/1/02; $1.00-$2.00 1/1/08 MA /29/58; 6-8 1/1/65; /3/66; /2/69; /1/71; /1/75; $ /11/83; /1/93; /1/96; 76 -$1.51 7/25/02; $1.51-$2.51 7/1/08; $2.51-$3.51 7/31/13 Ml /1/57; 5-6 2/1/60; 6-5 7/1/61; 5-7 7/1/62; /1/70; /1/82; $2.00 1/1/88; /1/94; 75 -$1.25 8/1/02; $1.25-$2.00 7/1/04. MN** /1/59; /1/61; 7-8 5/21/63; /30/69; /31/71; /1/85; $ /1/87; /1/91; /1/92; 48 -$ /1/05; $1.485-$ /1/11; $1.592-$ /1/13; $3.323-$ /1/14; $3.342-$ /1/15 MS /1/55; 5-6 7/1/58; 6-8 7/1/62; 8-9 7/1/64; /1/73; /1/85; /15/09 68 MO /1/56; 2-4 5/1/61; 4-9 7/15/69; /13/82; /1/93 17 MT /7/50; 4-5 2/25/57; 5-8 7/1/57; /5/71; /1/83; /1/89; /15/92; /15/93; /1/03; 70 -$1.70 1/1/05 $1.70 *Alaska became a state January 3, 1959; Hawaii, July 4, **MN sells stamps for $3.426 per pack. It is a composite of a $2.90 excise tax, and a 52.6 cents per pack wholesale sales tax assessed in lieu of a general sales tax. The sales tax component changes annually. DC exempted cigarettes from the sales and use tax in October of 2011 and replaced it with a surtax of 36 per 20 pack. The tax listed in the table is the cigarette excise tax of $2.50 plus the cigarette surtax of 36. The surtax was raised to 40 on 10/1/14.

19 Table 6 State Cigarette Tax Rate Changes Since July 1, 1950 Through January 1, 2015 (Continued) State Year First Enacted Rate July 1, 1950 Changes Rate Jan. 1, 2015 NE /20/57; 4-6 6/1/63; 6-8 4/1/65; /28/71; /30/81; /1/82; /1/86; /1/87; /1/93; /1/02 NV /1/61; /1/69; /1/83; /1/87; ; 7/1/89; /1/03 NH (15%) 7/1/51; (21%) 7/1/65; (30%) 7/1/67; (34%) $1.78 7/1/70; (42%) 7/7/71; 42% of retail price to 12 7/1/75; /15/83; /1/89; /20/90; /1/97; /1/99; /1/05; 80 -$1.08 7/1/07; $1.08-$ /2/08; $1.33-$1.78 7/1/09; $1.78-$1.68 7/1/11; $1.68-$1.78 7/1/13 NJ /1/56; 5-6 1/6/61; 6-7 5/23/61; 7-8 6/1/63; /16/66; $2.70 6/4/68; /16/72; /18/82; /1/83; /1/87 (surtax escalator); /1/90; /1/98; 80 -$1.50 7/1/02; $1.50-$2.05 7/1/03; $2.05-$2.40 7/1/04; $2.40-$ /1/06; $2.575-$2.70 7/1/09 NM /1/55; 5-8 7/1/61; /1/68; /1/86; /1/93; $1.66 7/1/03; 91 -$1.66 7/1/10 NY /1/59; /1/65; /1/68; /1/72; /1/83; $4.35 5/1/89; /1/90; /1/93; 56 -$1.11 3/1/00; $ /3/02; $1.50-$2.75 6/3/08; $2.75-$4.35 7/1/10 NC /1/69; 2-5 8/1/91; /1/05; /1/06; /1/09 45 ND /1/51; 6-7 7/1/63; 7-8 7/1/65; /1/69; /1/79; /1/83; /1/87; /1/89; /1/91; /1/93 OH /1/56; 3-5 6/1/59; 5-7 9/1/67; /19/69; /20/71; $ /15/81; /15/87; /1/93; /1/02; 55 -$1.25 7/1/05 OK /1/61; 7-8 7/1/65; /1/68; /1/79; /1/87; 23 -$1.03 $1.03 1/1/05 OR /1/66; 4-9 2/17/72; /1/81; /1/82; /1/85; $ /1/89; /1/93; /1/94; /1/97; 68 -$ /1/02; $1.28-$1.18 1/1/04; $1.18-$1.31 1/1/14 PA /1/55; 5-6 6/1/59; 6-8 6/1/63; /16/67; /15/70; $1.60 8/19/91; 31 -$1.00 7/15/02; $1.00-$1.35 1/7/04; $1.35-$ /1/09 Rl /1/58; 5-6 6/1/60; 6-8 6/1/64; /1/68; /1/75; $3.50 3/15/82; /1/85; /1/86; /1/88; /1/89; /1/93; /1/94; /1/95; /1/97; 71 -$1.00 7/1/01; $1.00-$1.32 5/1/02; $1.32-$2.46 7/1/04; $2.46-$3.46 4/10/09; $3.46-$3.50 7/1/12 SC /1/51; 3-5 7/1/59; 5-6 7/1/69; 6-7 7/1/77; /1/10 57 SD /1/55; /1/59; 5-6 7/1/63; 6-8 7/1/65; /1/69; $1.53 7/1/79; /1/81; /1/85; /1/95; /18/03; 53 -$1.53 1/1/07 TN /2/51; 5-7 6/1/63; 7-8 6/1/67; /1/69; /1/02; /1/07 62 TX /6/55; 5-8 9/1/59; /1/65; /1/69; /1/71; $ /2/84; /1/85; /1/87; /1/90; 41 -$1.41 1/1/07 UT /19/54; 4-8 7/1/63; /1/79; /1/82; /27/87; $ /1/91; /1/97; /1/02; $1.70 7/1/10 VT /1/57; 5-7 7/1/59; 7-8 7/3/63; /1/65; /1/69; $2.75 8/15/83; /1/91; /1/92; /1/92; /1/95; /1/02; 93 -$1.19 7/1/03; $1.19-$1.79 7/1/06; $1.79-$1.99 7/1/08; $1.99-$2.24 7/1/09; $2.24-$2.62 7/1/11; $2.62-$2.75 7/1/14 VA /1/60; /1/66; /1/04; /1/05 30 WA /1/55; 5-6 6/1/59; 6-7 4/15/61; /1/65; /1/71; $ /1/81; /1/82; /1/82; /1/86; /1/89; /1/93; /1/94; /1/95; /1/96; $ /1/02; $1.425-$ /1/05; $2.025-$ /1/10 WV /1/51; 4-5 7/1/56; 5-6 7/1/61; 6-7 4/1/68; /1/70; /1/78; /1/03 WI /1/55; 4-5 7/1/57; 5-6 9/1/61; 6-8 8/15/63; /1/65; $2.52 9/1/69; /5/71; /1/81; /1/82; /1/87; /1/92; /1/95; /1/97; /1/01; 77 -$1.77 1/1/08; $1.77-$2.52 9/1/09 WY /1/51; 2-3 7/1/57; 3-4 7/1/59; 4-8 7/1/67; /1/89; /1/

20 Table 7 State Cigarette Tax Rates (During Fiscal Years Ending June 30) State AL AK 5 AZ AR 4 6* CA CO CT * 3* 3 3 DE * DC FL 5* GA Hl ID * IL IN IA KS * 4 4 KY LA ME MD 3 MA * Ml MN MS * MO 2* MT 2 4* * 8 8 NE * 4 NV NH NJ * NM NY * NC ND OH * 3 3 5* OK OR PA * 5 5 6* Rl * 5 SC SD TN 3 5* TX 4* * UT * VT VA WA 4* * * WV Wl WY *Indicates that the rate change shown became effective after the beginning of the fi scal year. 12

21 Table 7 State Cigarette Tax Rates (During Fiscal Years Ending June 30) State AL * 10 AK 5 5 8* AZ * 10 AR * * CA * 10 CO 5* CT DE 3 3 5* * DC * 3 3 FL * 15 GA * Hl ID * IL 3* * 7 9* 9 IN * 4 6* IA 4* * * 10 KS * 8* KY LA ME * 12* MD MA * 10* * Ml 6* MN * * MS MO 2 4* MT NE * 6 8* NV NH NJ 5 7* 7 8* * 11 14* 14 NM NY * * 12 NC ND OH * 7 OK * 13 OR PA * 13 Rl 6* * SC SD TN * * 8 13* TX 8* UT VT * * VA 3* * WA 6 7* * WV * 7 Wl 5 5 6* 6 8* 8 10* WY *Indicates that the rate change shown became effective after the beginning of the fi scal year. 13

22 Table 7 State Cigarette Tax Rates (During Fiscal Years Ending June 30) State AL 12 * AK AZ AR * CA CO CT * DE * DC 4* 4 4 6* * FL GA 8 12* Hl ID IL 12* IN IA 10 13* KS KY LA 8 11* ME MD * MA 12 16* Ml 11* MN MS MO 9* MT 8 12* NE 8 13* NV NH * NJ * NM NY * NC 2* ND OH 10* 10 15* OK OR 4 4 9* PA 18* Rl * SC SD TN TX 15.5* UT VT VA WA 11 16* WV * 17 Wl 14* 14 16* WY *Indicates that the rate change shown became effective after the beginning of the fi scal year. Hawaii tax was 40% of wholesale price until July 1, New Hampshire tax was 42% of retail price until July 1,

23 Table 7 State Cigarette Tax Rates (During Fiscal Years Ending June 30) State AL * AK * AZ AR * CA CO * 15 15* CT * DE DC * FL * GA Hl * 30 * ID * IL * IN IA * KS * KY LA ME * 20 28* MD MA * Ml * MN * MS * MO * MT NE * * NV NH * NJ * NM * NY * NC ND * OH * OK * OR * * PA RI * SC SD TN TX * UT * * VT * VA WA * 23* * WV Wl * WY *Indicates that the rate change shown became effective after the beginning of the fi scal year. Hawaii tax was 40% of wholesale price until July 1,

24 Table 7 State Cigarette Tax Rates (During Fiscal Years Ending June 30) State AL AK AZ * * AR * CA * CO CT * DE * DC * FL GA Hl ID IL * IN IA * KS KY LA * ME * MD * 36* MA * * 76 Ml * MN MS MO * MT * 18* NE NV NH NJ NM NY * NC * ND OH * OK OR * 68 PA * 31* RI SC SD TN TX UT VT * VA WA WV Wl * WY *Indicates that the rate change shown became effective after the beginning of the fi scal year. Hawaii tax was 40% of wholesale price until July 1,

25 Table 7 State Cigarette Tax Rates (During Fiscal Years Ending June 30) State AL AK AZ AR CA CO CT DE DC FL GA Hl ID IL IN IA KS KY LA ME MD MA Ml MN* MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV Wl WY *Starting in FY 2005, MN tax rate includes wholesale sales tax assessed in lieu of a general sales tax. 17

26 Table 7 State Cigarette Tax Rates (During Fiscal Years Ending June 30) State AL AK AZ AR CA CO CT DE DC** FL GA Hl ID IL IN IA KS KY LA ME MD MA Ml MN* MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV Wl WY *Starting in FY 2005, MN tax rate includes wholesale sales tax assessed in lieu of a general sales tax. In FY 2013, the MN excise tax was increased to $2.83, and the wholesale sales tax was adjusted accordingly. For details, see footnote on Table 6. **Starting in October 2011, DC exempted cigarettes from the sales and use tax and replaced it with a surtax of 36 per 20 pack. 18

27 Table 8 Gross State Cigarette Taxes (in Thousands of Dollars) (During Fiscal Years Ending June 30) State AL 7,002 6,854 7,341 7,450 7,120 7,007 9,916 10,297 10,721 11,488 AK 1,095 AZ 1,684 1,708 1,938 2,013 1,986 2,087 2,158 2,345 2,586 2,853 AR 4,929 5,703 7,043 7,301 7,065 6,861 7,914 7,788 7,909 8,733 CA CO CT 8,008 8,349 8,760 9,215 9,145 8,853 10,852 10,660 10,047 10,756 DE 1,057 1,083 1,099 1,170 1,488 1,521 1,632 1,694 1,788 1,955 DC 1,427 1,414 1,423 1,393 1,239 2,465 2,162 2,190 2,259 2,660 FL 15,729 17,347 18,555 19,685 19,681 21,081 22,663 25,648 27,966 30,666 GA 12,583 13,067 9,375 9,660 9,437 10,097 15,081 16,327 16,659 17,635 Hl ID 1,732 1,751 1,737 1,795 1,674 1,757 2,212 2,315 2,391 2,565 IL 29,819 29,411 30,611 32,773 32,752 32,212 33,961 35,575 36,915 39,122 IN 13,706 13,872 14,221 14,710 14,396 14,203 14,871 15,444 15,919 16,768 IA 5,222 5,299 5,267 5,344 7,624 7,381 7,471 7,675 7,991 8,876 KS 5,358 5,410 5,754 5,980 5,697 5,686 5,873 6,573 8,395 8,938 KY 5,486 5,678 6,148 6,446 6,441 8,184 8,849 9,159 9,208 10,313 LA 17,927 17,926 17,841 19,586 19,520 19,781 21,281 23,180 24,296 25,643 ME 4,850 4,672 4,836 4,957 4,765 4,798 5,807 5,967 6,116 6,412 MD 11,079 MA 25,930 29,497 27,607 28,546 28,011 28,112 28,944 29,904 30,847 38,093 Ml 22,598 23,510 24,352 25,996 26,192 25,706 26,966 27,456 43,149 46,939 MN 11,708 11,658 12,074 12,215 11,852 11,781 12,223 12,697 13,396 14,314 MS 6,322 6,737 6,836 6,620 6,519 6,610 7,446 7,811 8,068 10,180 MO 4,980 9,948 10,246 10,989 MT 1,490 2,168 2,910 3,077 2,938 2,907 2,089 3,286 5,410 6,036 NE 4,042 4,103 4,201 4,247 4,088 4,080 4,162 4,133 5,231 5,931 NV ,062 1,057 1,157 1,241 1,239 1,330 1,503 NH 2,315 2,497 2,904 2,854 2,733 2,732 2,890 3,022 3,331 3,759 NJ 18,723 19,383 20,135 20,708 20,518 20,277 24,736 34,736 36,297 38,909 NM 2,328 2,529 2,550 2,700 2,745 2,733 3,391 3,519 4,049 4,433 NY 59,149 61,072 62,898 64,056 62,007 60,789 62,695 64,620 67,389 84,717 NC ND 2,767 2,538 3,177 3,214 3,001 3,005 3,045 3,091 3,323 3,517 OH 19,099 20,058 20,905 21,851 21,515 20,993 26,250 34,012 34,821 37,480 OK 9,864 9,709 9,989 10,401 10,134 10,025 10,452 10,795 11,305 12,146 OR PA 44,541 46,965 46,215 47,547 46,169 44,917 54,313 58,481 61,223 66,490 Rl 3,265 3,430 3,508 3,648 3,502 3,340 3,442 3,595 3,897 5,982 SC 5,559 7,465 5,528 5,900 5,483 5,341 5,504 5,586 5,890 6,663 SD 1,853 1,850 1,850 1,888 1,829 1,809 1,963 1,952 2,100 2,234 TN 8,324 9,702 13,144 13,609 13,328 13,567 13,933 14,687 15,054 16,415 TX 30,965 34,075 36,006 37,636 36,028 36,016 43,329 46,321 48,677 51,453 UT ,018 1,051 1,298 1,877 1,983 2,067 2,113 2,278 VT 1,922 1,861 1,973 1,985 1,880 1,803 1,828 1,945 2,357 2,599 VA WA 6,843 10,322 10,632 10,961 10,742 10,971 13,320 13,788 13,963 15,001 WV 2,286 2,550 7,973 7,656 7,193 6,371 7,280 9,145 9,328 9,565 Wl 10,365 10,706 10,912 11,189 10,943 10,998 14,786 15,414 19,211 20,820 WY ,173 1,253 Total 440, , , , , , , , , ,258 19

28 Table 8 Gross State Cigarette Taxes (in Thousands of Dollars) (During Fiscal Years Ending June 30) State AL 15,848 18,119 18,361 18,910 19,168 20,134 22,694 23,497 29,328 31,983 AK 1,231 1,513 1,877 2,105 2,121 2,083 2,599 2,451 2,550 2,656 AZ 3,201 3,421 3,619 3,771 3,774 4,099 11,913 12,315 14,400 18,923 AR 9,437 10,029 10,745 11,314 11,437 12,786 15,503 16,086 16,367 17,577 CA 65,157 67,720 69,593 72,274 72,989 75,946 76,369 77, , ,124 CO 8,342 12,128 12,208 12,478 12,729 CT 11,505 12,680 19,723 20,575 22,989 24,953 32,786 33,497 33,504 35,335 DE 2,107 2,320 3,427 3,888 4,067 4,192 5,552 5,667 6,034 6,560 DC 2,865 3,279 3,596 3,863 3,755 3,984 4,739 5,327 5,443 5,150 FL 33,267 35,277 36,642 37,527 56,611 59,843 60,964 63,113 73, ,822 GA 19,752 21,219 21,163 22,196 27,239 35,539 36,551 38,052 37,873 39,683 Hl 1,725 1,967 2,053 2,074 2,060 2,279 3,252 4,178 4,475 4,856 ID 3,316 3,431 4,088 4,133 4,498 4,612 4,567 4,772 4,849 4,949 IL 51,038 44,270 57,704 59,041 58,859 61, , , , ,981 IN 17,839 18,484 19,021 20,471 25,245 28,937 38,748 39,790 40,293 40,353 IA 11,911 12,296 12,594 12,759 15,249 15,989 24,500 24,980 29,832 29,929 KS 9,225 9,592 9,995 10,282 11,044 15,062 18,178 18,227 18,214 18,820 KY 10,275 9,234 9,339 9,734 9,829 10,166 10,653 11,088 11,384 11,777 LA 27,787 28,639 29,133 30,366 31,173 32,590 33,855 34,592 34,374 34,534 ME 6,788 7,107 8,314 8,293 8,093 8,256 10,744 10,696 12,720 13,453 MD 11,492 11,492 22,960 23,495 24,112 24,923 25,567 26,383 26,885 27,556 MA 39,992 42,149 43,395 44,045 43,412 49,565 59,904 70,073 69,399 72,056 Ml 52,488 59,840 51,813 68,810 70,987 74,721 77,364 78,756 80,621 81,592 MN 20,028 21,820 25,481 27,823 29,422 30,846 31,561 32,781 32,606 33,822 MS 10,901 11,330 11,924 15,031 15,785 17,443 18,167 18,437 18,806 19,201 MO 11,470 14,053 22,642 23,155 22,510 22,968 25,027 24,945 25,284 25,384 MT 6,149 6,462 6,535 6,742 6,378 6,654 6,488 6,623 6,514 6,511 NE 6,276 6,753 6,833 7,184 9,312 10,444 12,539 12,810 12,567 12,482 NV 1,669 1,801 4,425 4,988 5,315 5,505 5,668 5,589 5,902 6,218 NH 4,018 4,281 4,573 4,733 4,913 5,346 8,659 9,131 12,806 12,210 NJ 42,038 48,547 61,211 62,567 70,212 73,781 79,708 99, , ,385 NM 4,830 4,997 7,253 7,508 7,272 7,721 7,893 7,757 7,976 10,306 NY 120, , , , , , , , , ,979 NC ND 3,675 3,814 3,848 3,980 4,526 4,659 5,229 5,010 4,959 4,859 OH 62,615 63,310 65,136 65,840 65,720 68,074 69,429 70,276 91,891 95,439 OK 12,989 13,866 18,559 19,461 19,448 19,992 23,222 23,238 26,482 35,625 OR 12,911 12,957 12,862 PA 80,351 82,160 87,317 90, , , , , , ,937 Rl 6,223 7,391 7,600 7,505 7,653 9,741 9,994 10,387 10,290 14,284 SC 10,265 10,611 10,819 10,739 11,132 11,509 11,869 12,300 12,434 13,875 SD 3,518 3,666 3,824 3,820 4,394 4,234 5,592 5,433 5,413 5,378 TN 17,500 18,721 19,581 20,625 27,273 28,734 29,590 30,690 34,013 35,537 TX 74,556 86,637 89,768 91,771 91, , , , , ,425 UT 2,420 2,553 2,612 2,784 5,031 5,158 5,202 5,182 5,268 5,425 VT 3,302 3,545 3,630 3,646 4,018 4,023 5,145 5,149 5,370 5,780 VA 14,332 15,110 15,384 15,399 16,197 16,073 14,102 13,928 14,238 WA 17,514 18,430 20,669 20,896 20,424 21,463 28,666 32,768 34,535 36,157 WV 9,927 9,974 12,127 11,891 11,627 11,918 12,093 12,227 13,588 14,147 Wl 22,073 22,891 26,738 27,102 33,620 35,970 43,108 45,085 46,649 47,067 WY 1,827 1,868 1,864 1,834 1,807 1,842 1,813 1,806 3,381 3,419 Total 964,885 1,032,062 1,126,733 1,175,701 1,256,078 1,372,960 1,614,786 1,693,410 1,969,674 2,157,350 20

29 Table 8 Gross State Cigarette Taxes (in Thousands of Dollars) (During Fiscal Years Ending June 30) State AL 36,739 39,491 42,198 43,329 45,943 47,956 50,409 51,517 54,461 54,496 AK 2,737 2,996 3,255 3,274 3,444 4,056 4,649 4,868 4,676 4,451 AZ 19,510 19,640 23,116 24,963 27,387 34,513 35,349 35,911 37,232 38,136 AR 24,494 27,439 35,848 37,918 39,654 42,028 44,721 45,878 48,464 49,073 CA 239, , , , , , , , , ,823 CO 13,101 13,967 15,328 16,255 32,364 32,710 33,914 34,098 50,757 35,108 CT 57,913 57,202 69,983 70,720 72,582 71,458 73,701 76,803 76,700 76,544 DE 9,328 9,805 11,983 12,236 12,206 11,847 12,409 12,493 12,672 12,260 DC 5,801 6,416 6,532 8,022 8,165 7,640 10,137 12,669 11,640 11,201 FL 117, , , , , , , , , ,444 GA 40,789 49,778 65,455 67,861 71,031 72,018 74,435 75,841 78,514 79,159 Hl 5,219 5,786 5,871 6,406 7,430 7,825 8,603 9,275 9,875 10,652 ID 5,142 5,446 6,459 8,492 8,805 8,967 9,332 9,453 9,577 9,388 IL 159, , , , , , , , , ,296 IN 41,334 43,543 47,223 49,554 50,996 51,934 53,081 55,024 84,459 84,004 IA 30,156 33,339 40,548 41,441 43,976 44,852 46,500 46,895 47,623 46,818 KS 21,175 25,020 27,567 28,610 29,741 30,821 32,063 32,492 32,518 32,656 KY 12,587 15,938 17,662 19,983 21,292 22,457 23,527 23,588 23,305 22,550 LA 34,727 47,468 50,730 51,868 53,786 55,323 58,209 59,158 61,526 61,133 ME 15,081 15,898 19,165 19,885 20,452 23,565 24,549 24,919 24,988 24,172 MD 27,906 29,936 31,975 33,419 35,351 38,263 56,168 56,233 55,490 54,636 MA 81,570 88, , , , , , , , ,272 Ml 85, , , , , , , , , ,421 MN 50,169 57,866 61,452 74,856 77,610 78,648 82,524 83,667 85,172 85,350 MS 19,844 21,021 22,467 23,431 29,391 29,870 31,195 31,607 32,820 32,771 MO 50,999 54,050 55,576 56,509 57,975 58,307 59,808 60,568 61,263 61,335 MT 6,167 6,996 10,379 10,344 10,549 10,908 11,204 11,479 11,618 11,337 NE 12,529 14,171 20,623 21,119 22,153 22,892 23,744 23,759 23,822 23,614 NV 8,729 9,366 10,039 10,546 11,130 11,665 11,756 11,648 11,871 12,128 NH 13,332 17,821 24,229 23,666 23,477 23,913 28,508 27,498 27,463 26,610 NJ 120, , , , , , , , , ,389 NM 10,731 11,258 12,233 12,574 13,252 13,876 14,101 14,347 14,717 14,688 NY 261, , , , , , , , , ,650 NC 13,459 19,098 22,040 23,623 23,973 24,238 25,092 23,730 22,708 22,004 ND 6,261 6,696 7,140 7,599 7,780 8,261 8,760 8,641 8,756 8,706 OH 127, , , , , , , , , ,049 OK 36,186 38,578 41,295 42,488 45,179 46,797 48,871 50,503 52,475 53,000 OR 12,760 13,280 19,540 30,495 31,199 31,489 32,219 32,606 33,423 33,151 PA 194, , , , , , , , , ,213 Rl 14,682 15,231 16,769 17,873 18,482 19,352 25,351 24,823 24,711 24,530 SC 16,738 17,911 18,928 20,383 21,210 21,800 23,171 23,441 28,274 27,714 SD 7,360 7,730 8,280 8,438 8,909 9,283 9,561 9,515 9,665 9,721 TN 51,530 54,325 57,839 57,504 61,589 62,999 66,254 68,265 71,136 72,047 TX 169, , , , , , , , , ,670 UT 5,473 5,794 6,272 6,535 6,994 7,111 7,518 7,756 8,077 8,270 VT 6,459 6,675 7,586 8,136 8,454 8,776 9,672 9,674 9,413 9,404 VA 14,508 14,934 16,147 17,043 17,997 18,736 19,630 19,842 20,017 19,535 WA 36,210 37,668 48,833 50,113 54,106 55,315 56,868 57,489 59,298 61,252 WV 14,580 23,472 24,717 24,924 25,830 26,495 28,102 29,284 30,369 38,961 Wl 59,274 65,437 73,981 79,207 81,904 82,735 85,040 86,415 86,984 87,984 WY 3,381 3,517 3,806 3,894 4,117 4,614 4,834 5,003 5,205 5,720 Total 2,432,818 2,665,127 2,983,459 3,171,091 3,308,000 3,368,089 3,518,872 3,573,236 3,728,378 3,715,498 21