Wyoming

Wyoming Tops In The Nation For Outbound Cigarette Smuggling

Published

1 year ago

December 6, 2024

Wyoming Tops In The Nation For Outbound Cigarette Smuggling

Wyoming has the highest U.S. rate of outbound cigarette smuggling, the Tax Foundation reports.

The group released a study last week, announcing that 49.2% of Wyoming’s cigarette consumption goes to smugglers taking the product outside the state, based on 2022 data.

That’s the highest percentage of outbound smuggling for any U.S. state, based on each state’s cigarette consumption, meaning that Wyoming doesn’t have the highest volume of smuggled-out cigarettes, but that its sales have the highest chance of landing in black or grey markets in other states.

The study consists of estimates comparing states’ tax data to U.S. Census Bureau consumption surveys.

Adam Hoffer, director of excise tax policy at the Tax Foundation, told Cowboy State Daily on Friday that it’s worth noting how small Wyoming’s market is.

“Wyoming is a relatively small consumer of cigarettes, compared to somewhere like California,” he said. “So, small changes in consumption patterns can really swing that smuggling estimate.”

Hoffer, who wrote the Tax Foundation’s recent report, said that the group’s analysts have been “a little intrigued by Wyoming for several years.”

The state’s high smuggling rate is also augmented by the nearness of “more restrictive states,” like Utah and Colorado.

Utah’s 2022 inbound smuggling estimate is 20.46%, the report says — meaning about one-fifth of the cigarettes consumed in Utah were smuggled into it. It taxes cigarettes at $1.70 per pack.

Colorado’s inbound smuggling rate is similar, 19.86%. It taxes cigarettes at $1.94 per pack.

The Tax Foundation noticed an uptick in inbound smuggling in Colorado, plus an increase in outbound smuggling in nearby Wyoming, after Colorado doubled its per-pack tax rate in 2021.

In 2020 when Colorado’s cigarette tax was 84 cents per pack, its inbound smuggling comprised 7.96% of the state’s consumption, the group reported in 2022.

Wyoming’s outbound smuggling at that time comprised 24.35% of its own sales, and the state did not show the highest percentage in that area as it does in the more recent study.

Wyoming considered nearly doubling its cigarette tax rate in 2022, but the House Revenue Committee shut down that effort in 2023, by voting down a bill the joint version of that same committee had advanced before the lawmaking session.

Some Other Smuggler Favorites

Delaware sits in second place after Wyoming with 34.43% of its cigarette consumption going to out-of-state smuggling. New Hampshire is third, at 31.43%.

At 60 cents per pack, Wyoming doesn’t have the lowest cigarette taxation rate in the nation.

Of the 15 states besides Wyoming that show outbound cigarette smuggling, five of them have a lower tax rate per-pack than Wyoming, though all of them have indicated less outbound smuggling than the Cowboy State, according to the study.

For example, Missouri, which is No. 7 for outbound smuggling at 14.67%, only taxes cigarettes at 17 cents per pack.

But again, Hoffer noted, Missouri’s overall market is much larger than Wyoming’s so none of these figures undermine Missouri’s potentially large outbound smuggling volume.

“(Missouri) borders so many states that it is the hub of outbound cigarette smuggling for that region of the country,” said Hoffer. In other words, Missouri feeds its region with cigarettes.

“Probably (Missouri has) more net outbound smuggling than Wyoming, but it’s a smaller percentage of what’s consumed (there),” added Hoffer.

Idaho, the fifth-place state for outbound cigarette smuggling at 27.01%, taxes the product at 57 cents per pack, the study says.

North Dakota only taxes cigarettes at 44 cents a pack, yet ranks ninth for outbound smuggling at 13.83%.

Georgia taxes the product at 37 cents a pack, yet has an outbound smuggling rate of 3.14%, says the study. In the case of Georgia, outbound smuggling doesn’t make as much sense as in other areas, said Hoffer.

“Georgia borders North Carolina and is not far from Virginia,” Hoffer said. “If you’re going to smuggle form Georgia you’re probably only going to do so into Florida.”

North Carolina’s cigarettes are taxed at 45 cents per pack, and Virgina’s at 60 cents per pack, both low figures on the scale. Florida taxes them at $1.34 per pack.

Incoming

New York has the highest rate of inbound smuggling, the study says, with an estimated 54.3% of cigarettes consumed in the state coming from smuggled sources in 2022. The state taxes cigarettes at $4.35 per pack.

Next are California (46.7% smuggled of total consumed), New Mexico (41.2%), Massachusetts (39.7%) and Washington 36.8%).

Those four states tax cigarette packs at $2.87, $2, $3.51 and $3.03, respectively.

The Tax Foundation’s study also discusses other factors in the smuggling world, like flavor bans.

Massachusetts banned menthol cigarettes in June 2020. In the following year, its sales dropped by almost 24% compared to the year preceding the ban, says the study.

“This decline translates to $135 million less in cigarette tax revenue for Massachusetts,” the study notes.

Clair McFarland can be reached at clair@cowboystatedaily.com.

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Wyoming

University of Wyoming sues former energy research partner for $2.5M – WyoFile

Published

3 hours ago

December 17, 2025

Press Room

University of Wyoming sues former energy research partner for .5M – WyoFile

The University of Wyoming filed a lawsuit this week seeking $2.5 million from an energy company it partnered with to research enhanced oil recovery.

The university in 2024 signed a contract with Houston-based ACU Energy to advance research at the university’s Center of Innovation for Flow Through Porous Media, according to the university’s complaint filed Monday in Wyoming’s U.S. District Court. ACU Energy agreed to pay the university $15 million over the six-year research period. The company, according to the complaint, was to pay the university $2.5 million annually with two payments each year.

While the university kept up its end of the bargain — by assembling a research team, training research members and incurring costs to modify laboratory space — ACU Energy “failed to pay the University even a cent owed under the Agreement, leaving $2,500,000 outstanding in unpaid invoices,” the complaint alleges.

ACU Energy did not respond to a WyoFile request for comment before publication.

Old Main, the University of Wyoming’s oldest building, is home to administrative offices. (Tennessee Watson/WyoFile)

The company notified the university in February that it was terminating the contract, and the university notified ACU Energy in May of its breach of contract, according to court filings. The university asked the court for a jury trial.

Enhanced oil recovery refers to methods used to squeeze more crude from reservoirs that have already been tapped for primary production, extending the life of an oilfield.

The university commonly accepts money from private businesses in return for lending resources and expertise to advance research. The Center of Innovation for Flow Through Porous Media is part of the university’s Research Centers of Excellence in the College of Engineering and Physical Sciences.

The Center of Innovation for Flow Through Porous Media, led by Mohammad Piri, a professor of petroleum engineering, bills itself as “the most advanced oil and gas research facility in the world.” The center conducts research at the university’s High Bay Research facility, which “is funded by $37.2 million in state dollars and $16.3 million in private contributions, with an additional $9.2 million in private gifts for research equipment,” according to the center’s website.

The center has received donations from oil industry heavyweights like ExxonMobil, Halliburton and Baker Hughes.

Piri was tapped to serve as “principal investigator” for the UW-ACU Energy partnership, according to the university’s complaint. As of press time, ACU Energy had not filed a response to the lawsuit.

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Wyoming

Search for fugitive wanted for child-sex crimes leaves Wyoming town on alert

Published

15 hours ago

December 16, 2025

Press Room

Search for fugitive wanted for child-sex crimes leaves Wyoming town on alert

With a population under 600, Byron, Wyo., is generally a quiet town. In recent weeks, streets have been even quieter as both local and federal law enforcement search for 39-year-old fugitive Anthony Pease, who is wanted for six counts of sexual assault involving a minor.

Authorities have been searching the area for weeks, and a reward for information leading to an arrest now sits at $2,000.

See how the search impacts the town:

Search for fugitive wanted for child sex crimes leaves Wyoming town on alert

Saturday morning, law enforcement shared there was a confirmed sighting of Pease near town and reminded residents to remain vigilant by locking their doors and reporting suspicious activity. According to Wyoming’s Big Horn County Sheriff’s Office, before the weekend sighting, Pease hasn’t been seen since Nov. 1.

The Big Horn County Schools Superintendent, Matt Davidson, told MTN News a school resource officer on staff stays up to date with the latest on search efforts, and some parents say they’ve been keeping their kids indoors when they’re not at school.

As the search continues, the mayor as well as some residents, say they are taking law enforcement’s advice while keeping a watchful eye.

“I never used to lock my house during the day. I didn’t even lock my vehicles at night. In fact, a lot of the time I’d leave the keys in them. I’ve talked to other people and there is quite a few people that are nervous. I would hope that a lot of us are nervous because this is a bad thing,” said Byron Mayor Allan Clark.

In fact, investigators could be seen around Byron knocking on doors and scanning land outside of town.

“There’s just so much area and a low population, so much area for him to hide and seek shelter,” Clark said.

With so many wide-open spaces and abandoned buildings in the area, Clark understands why the search has gone on so long.

According to the US Marshals Service, Pease is 5 feet 11 inches tall and may also be going by the name Abraham. They also ask that anyone nearby who has a collection of silver dollars to ensure they are still there, and if not, to report to authorities.

Marshals say Pease is considered dangerous, and the public is told to not approach him and instead call 9-1-1. As the search has stretched over six weeks, many residents hope a capture will bring life back to normal.

“I hope that they capture him soon, and I hope that us as community members and around the area keep our eyes open and report anything suspicious,” said Clark.

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