Cigarette sales in Pennsylvania have been dropping like a hot ash onto a carpet. But at the same time, tax revenues generated by cigarette sales are rising like a stream of smoke.

According to figures compiled by the state Department of Health, the numbers of packs of cigarettes sold dropped from 1.064 billion in 2002 to 719 million in 2010, a 32 percent decrease.The annual gross cigarette excise tax collected, however, grew from $313 million in 2002 to $1.09 billion in 2010.In January, 2002, the tax on a pack of cigarettes was 69 cents; in November 2009, it climbed to $1.60.Proceeds from the tax help fund the children's Health Insurance program (CHIP) which provides health insurance to low-income children; the Agricultural Conservation Easement Purchase Fund to help preserve farmland; and the Health Care Provider Retention Fund for malpractice insurance, according to the state Department of Revenue.Pennsylvania's cigarette excise tax is the 22nd highest in the United States. The state with the highest levy is New York, with a $4.35 tax. The lowest is Missouri, which charges 17 cents a pack, according to figures from the Federation of Tax Administrators.