Use of Tobacco Tax Stamps to Prevent and Reduce Illicit Tobacco Trade—United States, 2014

May 29, 2015 / Vol. 64 / No. 20

Tax stamps are required on cigarettes by 48 states (including DC).
Three states do not require any tax stamps (North Carolina, North Dakota, and South Carolina).
Four states authorize the use of encrypted tax stamps (California, Massachusetts, Michigan, and New Jersey); New Jersey has not implemented its use.
Of the 17 states that taxed little cigars at an amount equivalent to cigarettes, which makes them subject to stamping, only five of these states’ laws explicitly required stamps on little cigars (Illinois, Iowa, Massachusetts, Rhode Island, and Vermont).
Of the five states that taxed roll-your-own tobacco (RYOT) as cigarettes, which makes them subject to stamping, only two explicitly required stamps on RYOT (Vermont and Washington).

Of the 34 states with federal reservation land within their borders, 20 regulated tribal tobacco sales.
Of the 20 states that regulate tribal tobacco sales, nine require stamps on all products sold on a reservation (Arizona, Florida, Nebraska, Nevada, New Mexico, New York, Oklahoma, Washington, and Wisconsin).
Of the 20 states that regulate tribal tobacco sales, four only require stamps to products sold to non-members of the tribe or on all products sold to tribes without tax agreements with the state (Idaho, Minnesota, Montana, and Utah).