Skip to main content

Houston Texas cigarette tax audit

By May 29, 2016April 28th, 2022News and Articles

Houston Texas cigarette tax audit

Smuggling cigarettes into Texas has become increasingly popular as the tax per pack of cigarettes keeps increasing in the state. For example, Texas is now the 8th highest state in terms of having cigarettes smuggled into its borders from neighboring states. It is estimated that nearly 32% of all cigarettes being circulated and sold within Texas are actually smuggled.

From a tax policy perspective, you have the demand of smokers in the state who are willing to pay the high tax, but from the consumer’s perspective, saving about $10.00 per week in your cigarette budget could also be a wonderful thing.

Here is the problem: The penalties of smuggling unstamped cigarettes into Texas carry both a civil and criminal penalty. The civil penalty is usually in the ballpark of $100
For a conventional package of 20 cigarettes, the tax is $1.41 per pack. For a package of 25 cigarettes, the tax is $1.7625 per pack. ($70.50 per 1,000 cigarettes weighing three pounds or less per 1,000. $72.60 per 1,000 cigarettes weighing more than three pounds per 1,000.)

Houston Texas cigarette tax audit.

Mansoor Ansari

Author Mansoor Ansari

More posts by Mansoor Ansari