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Posted on 07/20/2009 10:48:21 AM PDT by markomalley
States across the U.S. have been taking a harder line against an old problem -- cigarette smuggling -- as part of the widening search for solutions to their budget problems.
States including Florida, Maryland, Michigan, New York, Rhode Island and Virginia this year have stepped up law-enforcement efforts with the aim of recouping taxes lost to bootleg cigarette sales.
Studies indicate states are losing about $5 billion annually in tax revenue because of illegal tobacco sales, said Phil Awe, who heads the tobacco-diversion division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
"We do not want to have our tax laws ignored and lose tax revenue from legitimate sales of cigarettes," Maryland State Comptroller Peter Franchot said of the crackdown. He estimates that his state is losing "hundreds of thousands of dollars" annually.
The focus on cigarette smuggling is one of several initiatives gaining momentum as states hunt for new revenue to avoid cutting services or raising taxes. Some are contemplating revising current laws or creating new ones that could force out-of-state online retailers to collect sales taxes.
(Excerpt) Read more at online.wsj.com ...
In other words, I would have a hard time blaming anybody for doing it (not that I'd EVER do anything like that myself, mind you)
Next Mexico will become a major smuggler of tobacco products into the United States.
Where do I go to buy $30.00 per carton cigs?
Can they be bought cheaper?
Stupid. Meanwhile real criminals walk free.
Actually, the united states will be the supplier.
Smugglers buy them wholesale, tax-free in the US for export.
Then they bring them right back.
You really want cigarette tax avoidance - and be totally legal about it?
Buy an e-cigarette (the cigarette and nicotine packs), you’ll be bypassing that altogether, pay a lot less and be able to use it in all non-smoking places because it is not a cigarette, it does not produce smoke. No second hand smoke, no odor. It will pay for itself in about 2-3 weeks, then after that you’ll be saving a lot of money. the nicotine packs are equiv to 20 cigs (a pack) and cost $2 per cartridge, compared to 6-7 bucks per pack of real cigs.
We have a large border with Mexico, and all have duty free shops, this side of the border.. buy a carton run it across, and your home free, declare it. and do it again.. I know people who are making thousands a month doing this.. San Diego is lucky we have two border crossing with multiple duty free shops..You are allowed 200 cigarettes in 30 days, but ICE does not keep track, so it is good money in this recession
Excessive tax just moves products from the free market to the black market.
Uganda the land of cheap smokes
Back a year or so ago, Marlboros used to be as cheap as $26 a carton in South Carolina. Don’t know if SC has upped their tax or how the new Fed tax impacted it.
I also seem to remember prices being pretty cheap in KY and MO, as well (at least relative to neighboring states)
As far as cheaper, perhaps on Indian reservations.
Actually, terrorists are using this to gain funds.
Just roughing the numbers for an order of magnitude, the trailer would hold roughly 971,107 packs of cigs. @ $5 each, we're talking $4,855,537 smackeroo's. A guy could get rich just hijacking one of these loads.
And they won’t have nearly the class Al Capone had. Thanks, prohibitionist bastards!
Don’t know exact prices, but taxes are ultra-low in Virginia and the Carolinas. There is no shortage of truck stops along the interstates in any of these three states avertising outlet prices. The locals are generally friendly enough to steer you to the best buys.
Attacking electronic cigarettes shows us the government is really worried that people will quit smoking, seriously cutting into their revenues from tobbacco. Myself, I've been using e cigarettes for almost 3 years now; it's how I quit smoking a 2 pack a day habit, and between my wife and I, saving over $7000 a year in what was mostly taxes to governments on tobacco. We don't even use e-liquid containing nicotine anymore, we just enjoy "vaping" they various flavors we make ourselves using the base ingredients contained in commercial e cigarette juice, which is mostly propylene glycol (usp), a commonly used ingredient in food products, and/or vegetable glycerine (soy based) plus whatever concentrated extract oil flavoring ( LorAnn flovorings) we like. If you have never been able to quit smoking but want to, invest in a electronic cigatette and a couple bottles of e juice. (joye510 kit/manual batteries are very good) Best under $100 investment you'll ever make. With just a tiny wee bit of determination, you WILL be able to quit smoking. Alternatively, you can use a e juice flavoring which doesn't have nicotine added, and use a nicotine patch while using the e cig to replace the handling and smoking cigarettes part of the nasty habit.
Keep in mind that our dear government is trying to ban e cigs, so stock up on e-juice with nicotine if you use it.
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