Internet smokes put out for good

New York Daily News ^ | 2/14/03 | ROBERT GEARTY and WILLIAM SHERMAN

[kattracks]

Internet sales of tax-free cigarettes in New York State went up in smoke yesterday after a federal appeals court upheld a state ban on direct sales to consumers.

The ruling means more than $700 million a year in increased tax revenues for the state, according to estimates.

But it's a big blow to city smokers who save more than $4 a pack by buying online or ordering from Indian reservations that have tax-exempt status.

The ruling also applies to cigarette sales by telephone and by mail, according to Attorney General Eliot Spitzer.

The decision by a three-judge panel of the 2nd Circuit Court of Appeals overturned a lower court ruling that found a state law unconstitutional.

Cigarette companies, including Brown & Williamson Tobacco, had challenged the 2000 law, saying it discriminates against interstate commerce, restricting access to a product.

But in a 44-page opinion, the appeals court said the state law "does not prohibit New York consumers' access to cigarettes ... it merely requires that they purchase cigarettes in a manner that allows the seller to verify the buyer's age and to collect the state excise tax."

Double benefit

Gov. Pataki lauded the ruling and said the state law "will play a critical role in our aggressive efforts to prevent minors from purchasing cigarettes," as well as pumping revenue into the strapped state coffers.

The ruling means consumers can buy cigarettes only from licensed dealers who sell taxed cigarettes with the familiar stamp at the bottom of each pack.

"It will help the city and state with their budget problems," said Leonard Schwartz, president of the state tobacco wholesalers association, who estimated the state was losing $1.6 billion a year through Internet sales, cigarette smuggling and other untaxed sales.

Eric Proshansky, a lawyer with the city corporation counsel's office, said that while enforcing the ban could be a problem, law enforcement officers would cruise the Internet to make sure cigarette dealers comply with the law.

[kattracks]

ping

[goldstategop]

I expect New Yorkers to go out of state or to Indian reservations to buy their cigarettes. Shame on the New York courts for siding with the Tobacco Gestapo to prevent smokers from buying cigarettes at the lowest possible price online.

[StriperSniper]

Music to the ears of smugglers, New Hampshire smokes are $3 a pack and only 3 hours away.

[RightOnline]

"Gov. Pataki lauded the ruling and said the state law "will play a critical role in our aggressive efforts to prevent minors from purchasing cigarettes,"..."

Nonsense and balderdash. It's about two things and two things only: "mon" and "ey".

[sit-rep]

Another intervention by the Fed when it suits them. So much for compassion for our "Native Americans"

SR

[cgbg]

This approach will have several obvious side effects:

() Creating a new line of business for organized crime enxuring that certain Families That Shall Nto Be Named shall remain rich and powerful into the far future.

(2) Creating a new line of business for small-time entrepreneurs.

(3) Creating a war on the street between (1) and (2). Yes, there will be civilian casualties, so then the geniuses in the legislature will have to go to

(4) More gun control.

Wildly overtaxing one product relative to all others has never worked in the history of man.

But since the only history they teach these days is politically correct history which ignores the accumulated wisdom of thousands of years of dead white men we are destined to keep making the same stupid mistakes over and over and over again. :-(

[THEUPMAN]

Is there a limit on how many cigarets one may have that do not have a ny tax stamp?

[Grit]

...it merely requires that they purchase cigarettes in a manner that allows the seller to verify the buyer's age and to collect the state excise tax."

I wonder if New Yorkers can still buy porn online? I thought that congress passed a law that says a credit card is a valid way to prove that one is not a minor. Or maybe its just the tax they are worried about? Hmmm? Ya think?

[Grit]

I can't imagine that they would not address that issue. MY guess is 2 cartons - anything above that is possession with intent to sell. Have a nice day.

[Grit]

One ping to rule them all...

[CPOSharky]

And this would be a legal precedence working toward a ban all direct selling?

[metesky]

How is the state going to enforce it?

Snoop everyone online?

Random snooping?

Sounds unenforcable.

[ContemptofCourt]

The easiest way is to check your pack of smokes and see if it has a tax stamp.....then go from there.

[Phaedrus]

Nonsense and balderdash. It's about two things and two things only: "mon" and "ey".

And how the courts interpret the law to enhance the power of the state.

[Renatus]

Modern day stamp act. History does repeat itself.

[Fred Mertz]

The ruling means consumers can buy cigarettes only from licensed dealers who sell taxed cigarettes with the familiar stamp at the bottom of each pack.

New Yorkers ain't stupid. This stupid ruling will create a new set of criminals...smokers who want to save a buck.

[metesky]

Random street shake downs for cigarette tax stamp inspections?

You're a lawyer, how long do you think that crap will fly?

[TechJunkYard]

Sounds unenforcable.

Fact: Posession of lottery tickets is illegal in North Carolina.

Fact: South Carolina and Virginia have state lotteries.

State law enforcement agents have observed cars with NC plates in convenience store parking lots just over the state line, followed them as they crossed back into North Carolina, and busted them. It's an easy $2000 for the state.

I'm sure the cops in NY can be just as innovative when faced with the smuggling of "contraband" cigarettes.

[Glenn]

how long do you think that crap will fly?

Prohibition is the historic model to view this through. It's unenforceable except for anecdotal arrests of dealers. They aren't going to clog the courts with smokers.