According to a report from the Tax Foundation, 56.9 percent of cigarettes sold in New York are smuggled.
This is an unintended consequence of high state taxes on cigarettes. Criminals have been obtaining cigarettes in low-tax states before selling them on in high-tax states.
Smuggling is highly lucrative and may take various forms including counterfeit tax stamps, counterfeit brands or hijacked trucks. Arizona and New Mexico are the second and third worst states for cigarette smuggling with rates of 51.5 and 48.1 percent respectively.
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