As you may have noticed, most states are finding themselves in fiscal straights. States took in $87 billion less in tax revenue between October 2008 and September 2009 than they did in the prior 12 months, according to the Center on Budget and Policy Priorities. That has led to all sorts of service cuts and tax hikes. This weekend I noticed a big one in New York state: as of July 1, cigarettes cost $1.60 more a pack. No, I wasn’t buying cigarettes—they kill you, people—but there was a big sign at my local drug store explaining the change, ostensibly to prevent customers from getting mad at the drug store itself.
If I were a smoker, I’m sure I would have already been aware of this change, since cigarettes are now more expensive in New York than anywhere else in the U.S., costing up to $11 a pack. That, along with a conversation I had with John, made me wonder how New York stacks up on other excise taxes—those levied on things like gasoline and beer. Here are some state-by-state comparisons, which, depending on where you live, might make you feel better about how much you’re paying in taxes.
On the gasoline front, New Yorkers are (again) among the highest tax payers in the nation. Here is a link to a PDF put out by the American Petroleum Institute. As of April, the states with the highest gas taxes in cents per gallon, including the 18.4-cent federal tax are, California (67 cents), Hawaii (63.5 cents), New York (63.3 cents), Connecticut (61.0 cents) and Illinois (58.8 cents). The states with the lowest gas taxes are Alaska (26.4 cents), Wyoming (32.4 cents), New Jersey (32.9 cents), South Carolina (35.2 cents) and Oklahoma (35.4).
That New Jersey is so far down on the list surprised me, considering how ruthlessly the state has been forced to cut services—among other things, the state got rid of motor vehicle inspections and $820 million from school funding. New Jersey does, however, like to tax its smokers. Here’s a rundown of cigarette taxes from the Federation of Tax Administrators. Although that list is from January, and some states have upped their taxes since then. South Carolina, for instance, recently added 50 cents to its cigarette tax—yes, South Carolina!—so it’s no longer last in the nation with a 7-cent tax.
Another set of numbers that are interesting to compare are taxes on beer, wine and spirits. States are really all over the map on taxing alcohol. The Tax Foundation gives a state-by-state breakdown here. Wine taxes range from 11 cents per gallon in Louisiana to $2.50 in Alaska (North Carolina is also up there, at $2.34.) Beer taxes go from 6 cents per gallon in Wisconsin to $1.07 in Alaska (Alabama is a close second at $1.05).
As for New York? Well, I may have to pay extra for cigarettes and gasoline, but at least the state keeps alcohol relatively cheap, adding just 30 cents in tax per gallon of wine and 14 cents per gallon of beer.
