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Fines and Penalties Individuals can be fined: 1st offense $100 $250 2nd offense $250 -$ 500 After 2 offenses $500 $1,000 Businesses can be fined: 1st offense $100 $500 2nd offense $500 -$ 1,000 3rd offense $1,000 $3,000 After 3 offenses $3,000 $5,000 In addition, upon the third conviction of a retailer in a 24-month period, the PA Department of Revenue may, after the opportunity for a hearing, suspend the retailers cigarette license for up to 30 days

In economist-speak, this is because taxes introduce "deadweight loss" check out the chart below to see how this works: In this scenario, we've imposed a new tax on the good in question

the effect lasted for 7 months and was sustained for an additional 15 months

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