A new report says that Massachusetts, one of the states at the forefront of fighting tobacco and nicotine with taxes and regulations, saw a 21,000% increase in illegal vape seizures last year. The Massachusetts Multi-Agency Illegal Tobacco Task Force (which is under the umbrella of the state’s Department of Revenue) said state police vape seizures jumped from 1,326 units to 279,432.
The report also found there is a thriving market for untaxed menthol cigarettes, flavored cigars, and other banned products, all presumedly powered by state policies like high taxes and strict prohibition.
“It just shows that, in the state’s own report, black market sales will rise or thrive because of this,” V.J. Mayor, the CEO of the Northeast Wholesalers Association told Inside Sources. “And it doesn’t achieve the public health outcome that the state is looking for when it increases state excise taxes on cigarettes.
“Massachusetts’ experience proves that overly restrictive policies do not eliminate the problem, they simply drive it underground. This fuels a thriving black market, undermines legitimate businesses, and ultimately shortchanges the state’s revenue.”
The state’s restrictive policies date back to 2019’s “An Act Modernizing Tobacco Control” law, which banned the sale of flavored tobacco products, added new regulatory requirements, and placed a 75% excise tax on electronic nicotine systems. It also opened the door for local authorities to extend their own controls, with numerous towns adding more taxes, creating generational bans, and outlawing specific products.
“These numbers are absolutely staggering and prove what [we] warned from the start—Massachusetts has created the perfect environment for illegal smuggling,” said Peter Brennan, executive director for the New England Convenience Store and Energy Marketers Association. “Our members are losing customers to the illicit market every day, and the state is bleeding tax revenue because criminals are filling the void created by excessive taxes and product bans.”
Paul Craney, from the free-market Massachusetts Fiscal Alliance think tank, says Massachusetts has one of the highest rates of consumers who buy tobacco products without paying state taxes as people cross the border into New Hampshire to buy the products significantly cheaper, and then also end up doing more shopping for alcohol, groceries, and more. The Tax Foundation and Mackinac Center for Public Policy found that between 2007 and 2022, New Hampshire’s government received $955 million from Massachusetts smokers.
“This report is also clear evidence of just how misguided additional prohibitions would be,” Brennan said. “Ideas like creating a so-called nicotine-free generation or limiting sales of nicotine products to adult-only stores will only make a bad situation worse—driving even more consumers to illegal sellers, costing even more tax revenue, and putting even more pressure on our small businesses.”
