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Nationally, the rate was 8.0%.2 Economics of tobacco use and tobacco control Economics of tobacco use in Michigan Michigan received $1.2166 billion (estimated) in revenue from tobacco settlement payments and taxes in fiscal year 2019.4 Of this, the state allocated $1.6 million in state funds to tobacco prevention in fiscal year 2019, 1.5% of the Centers for Disease Control and Preventions annual spending target.4 Smoking-caused health care costs: $4.59 billion per year.4 Smoking-caused losses in productivity: $4.78 billion per year.5 Michigan tobacco laws Cigarette tax in Michigan Tobacco taxes Michigan is ranked 17th in the U.S