This study re-evaluates the efficacy of cigarette taxation in curtailing smoking. I use recent advancements in the difference-in-differences (DiD) literature to account for heterogeneous treatment effects and compare the findings to the two-way-fixed effect (TWFE) estimates. Using data from the Behavioral Risk Factor Surveillance System Selected Metropolitan/Micropolitan Area Risk Trend (BRFSS SMART) for sample periods 2004-2010 and 2015-2020, the study presents three main findings. First, the results for 2004-2010 sample show that the TWFE estimate is only about 65% of the size of the overall average treatment effect on the treated (ATT) estimate obtained using DiD framework. Second, the event-study type estimates increase gradually in magnitude following the treatment year, thus demonstrating dynamic treatment effects ignored by the TWFE estimate. Third, the ATT estimate pertaining to 2015-2020 sample is only about 63% of the ATT estimate for 2004-2010 sample. Overall, the findings point out that relying on TWFE models to obtain elasticity estimates may bias the estimates towards zero.