There's already a massive black market for people who want to smoke in the form of tax stamp fraud. It used to be even bigger than it currently is, but there are two forces working against it: the overall decline of organized crime starting in the 1980s, and the overall decline in the number of smokers.
Black markets are a reality under current economic conditions, and they're a reality even in completely legal markets (there's always someone willing to pay XX% less in exchange for YY% more legal risk). Putting extreme taxes and/or fines on smoking might pour gas on that market, but long-term trends just don't support its survival.
And as for fines: we already have a legal structure for that[1].
[1]: https://www.dol.gov/general/topic/wages/garnishments