It appears cigarette sales may have stablized in Iowa after a dramatic decline.
In March of 2007 state officials raised the state tax on a pack of cigarettes by a dollar. In July of 2008 the Iowa Smokefree Air Act went into effect, barring smoking in most public places. In March of 2009 federal taxes on cigarettes and tobacco products went up, too. Those actions started to “noticeably” reduce Iowa cigarette tax revenue according to an analysis from the Iowa Legislative Services Agency.
However, the decrease in state cigarette taxes has “flattened out” and it appears smokers may be shifting to other sources of nicotine. State tax revenue from sales of other tobacco products, like cigars and chewing tobacco, has seen “slow, but steady growth” since 2009.