In 2005, tobacco taxes contributed $13 billion to state budgets. But cigarette tax collections that year were down in 15 states compared with the year or years before, according to a study backed by the tobacco industry. States such as New York, Massachusetts and Illinois are all forecasting a drop in revenue.
Similarly, the federal cigarette tax has been bringing in less money each year since 2002. The amount dropped from $8.1 billion in 2002 to $7.7 billion in 2005, according to the same study.