The intended and unintended consequences of a legal measure to cut the flow of illegal cigarettes into New York City: the case of the South Bronx

• Published in: American journal of public health (1971) Vol. 105; no. 4; pp. 750 - 756
• Main Authors: Kurti, Marin, von Lampe, Klaus, Johnson, Jacqueline
• Format: Journal Article
• Language: English
• Published: United States American Public Health Association 01.04.2015
• Subjects: Censuses; Cigarette industry; Cigarettes; Commerce - legislation & jurisprudence; Commerce - statistics & numerical data; Discount coupons; Humans; Indians, North American - statistics & numerical data; Jurisdiction; Native North Americans; Native reservations; New York City - epidemiology; Population; Public health; Purchasing; Research and Practice; Smoking - epidemiology; Sovereignty; State taxes; Tax exempt organizations; Tax exemptions; Taxation; Taxes - legislation & jurisprudence; Taxes - statistics & numerical data; Tobacco Control; Tobacco Products - statistics & numerical data; New York City; United States > US; South Bronx-Bronx NY; New York City New York
• ISSN: 0090-0036; 1541-0048
• DOI: 10.2105/AJPH.2014.302340

We examined the impact of a change in New York tax law on the numbers of untaxed cigarettes bootlegged from Native American reservations and resold in the South Bronx. Discarded cigarette packs were systematically collected in 30 randomized South Bronx census tracks before and after the amended tax law went into effect in 2011. Also, administrative data were gathered on the number of taxed cigarettes sold in New York State, including sales to Native American reservations. Before the tax amendment, 42% of discarded cigarette packs collected in the South Bronx had no tax stamp. After the tax law went into effect, the percentage of cigarette packs without tax stamps declined to 6.2%. Simultaneously, the percentage of packs with out-of-state tax stamps rose from 18.3% to 66.3%. The percentage of packs with a combined New York State and New York City tax stamp did not change after the tax amendment. After the tax amendment, the supply of contraband cigarettes appears to have quickly shifted from one lower-priced jurisdiction to another without a change in the overall prevalence of contraband cigarettes.