From: NACS
Richmond Times-Dispatch report analyzes the increasingly common practice along the east Coast, from Virginia to New York.
RICHMOND, Va. — Earlier this week, the Richmond Times-Dispatch published an extensive article analyzing the growing problem of illicit interstate cigarette trafficking, particularly along the East Coast from Virginia (with a state cigarette tax of 30 cents per pack) to New York (with a state cigarette tax of $4.35 per pack, higher in New York City).
According to the article, the economics driving the trafficking are simple and irresistible: a $4 or $5 pack of cigarettes in Virginia can fetch up to $12 to $15 in New York City, although most sell there for $8 to $9 because savvy shoppers expect a discount for cigarettes with Virginia tax stamps. The two states are just a few hours apart on Interstate 95, and a one-day round trip in a car or a van can earn thousands of dollars.
