Tax Revenue Losses From Cigarette Smuggling in Florida

According to a report by the Tax Foundation, 19.1 percent of all cigarettes consumed in the US State of Florida in 2011 was smuggled into the state and sold without tax payment.

$1.24 Billion in cigarette taxes was paid in Florida in 2012. Based on the percentage of smuggled cigarettes, Florida lost around $240 Million in tax revenue to cigarettes sold on the black market.

Smugglers are able to purchase cigarettes in the neighboring state of Georgia and make a $1 profit by selling the pack in Florida.

Source:  “Cigarette smuggling in Florida increases,” Action News Jax, September 6, 2013.