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Internet Smoke Shops Lure Tax-Averse Cigarette Buyers
Newhouse News Service ^

Posted on 07/31/2002 7:51:30 PM PDT by RCW2001

Internet Smoke Shops Lure Tax-Averse Cigarette Buyers

By HARLAN SPECTOR

c.2002 Newhouse News Service

As state after cash-strapped state slaps hefty tax increases on cigarettes, smokers are flocking to Internet sites where they can buy tax-free.

Hundreds of Internet smoke shops have come online in recent years, offering a vast selection of premium and discount brands and the enticement of tax-free smoking.

Anti-tobacco activists complain that Internet vendors are unregulated, making it easy for kids to buy online.

Meanwhile, some states are looking for ways to collect the excise taxes cigarette smokers are dodging. Massachusetts and other states have sought customer names from Internet vendors, but they have little leverage to force the issue.

The Ohio Department of Taxation asks a handful of out-of-state vendors for customer lists every year.

"We haven't had very good response," says department spokesman Gary Gudmundson.

"None of these (vendors) report," says Gary Kirschner, chief executive of eSmokes.com. Kirschner says his Internet smoke shop now has 450 competitors online, compared with 30 when his company started in 1999.

"Eighty percent are Indian reservations," he says. "They never report anything to anybody." Sales of cigarettes on Indian reservations are exempt from state and local taxes by law.

Demand is greatest from high-tax states like New York and New Jersey, which levy the nation's highest smoking tax -- $1.50 per pack.

Kirschner says eSmokes also is seeing a jump in customers from Pennsylvania, which raised its tax to $1 a pack on July 15.

New York tried to outlaw Internet and mail-order cigarette sales, but a federal judge struck down the provision last year.

Rep. Martin Meehan, D-Mass., is drafting legislation in Congress to prohibit Internet sales to minors and require that cyberstores be licensed in every state in which they do business.

Age verification at dirtcheapcig.com is typical of Web vendors: "Click here to enter only if your (sic) are 18 or older".

Dr. Rob Crane, a Columbus, Ohio, family physician and anti-smoking activist, says Internet sales threaten efforts to reduce smoking rates with higher taxes.

"It ought to be illegal to sell across state borders," says Crane, who is also part of a campaign to raise the smoking age to 21.

The 55-cent-per-pack tax in his state, where adult and teen smoking rates are among the highest in the nation, may not be enough to drive large numbers of smokers to Internet vendors. Shipping charges keep Internet prices in the ballpark with brick-and-mortar retailers.

Tobacco dealers dispute evidence that higher taxes discourage smoking. They say the tax burden only shifts dependence to low-cost brands and out-of-state vendors.

"It's not people giving up the habit," says Joshua Sanders of the Ohio Council of Retail Merchants.

"They're just going somewhere else."

(Harlan Spector is a reporter for The Plain Dealer of Cleveland. He can be contacted at hspector@plaind.com.)


TOPICS: Extended News; Government; Miscellaneous
KEYWORDS: pufflist
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To: E Rocc

Undoubtedly caves were involved.

That's because Al Gore invented caves.

81 posted on 08/01/2002 5:20:07 AM PDT by Zon
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To: Publius6961
They can't keep killers off our airliners, but they can enforce tobacco criminal penalties no problem.

BINGO!!!


82 posted on 08/01/2002 5:30:56 AM PDT by SheLion
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To: Rome2000
You forgot to add that a very large percentage of male cigarette smokers get impotent at a young age (although judging from commentary on another thread, many blame the impotence on being circumcised).
83 posted on 08/01/2002 5:32:29 AM PDT by PJ-Comix
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To: VA Advogado
That's why, before you buy off of the Net, you ask them if they turn in their customer list. Some have. But the ones we post in here do NOT! Your safe! :)
84 posted on 08/01/2002 5:32:51 AM PDT by SheLion
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To: PJ-Comix
You forgot to add that a very large percentage of male cigarette smokers get impotent at a young age (although judging from commentary on another thread, many blame the impotence on being circumcised).

Oh sure! Just like if you "eh eh" too much, you will go blind. One kid said "well, can I "eh eh" until I need glasses?" Give me a break. LOL!

My uncle smoked three packs a day and had "5" girls!

85 posted on 08/01/2002 5:38:13 AM PDT by SheLion
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To: ladyinred; chadsworth
smoking lamp is lit
86 posted on 08/01/2002 5:39:40 AM PDT by Clovis_Skeptic
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To: VA Advogado
In Maine at the Military Guard Unit BX, cartons are over $30 dollars a carton. So it's not worth the gas now to go down there to stock up. So, I roll our own.
87 posted on 08/01/2002 5:40:55 AM PDT by SheLion
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To: Clovis_Skeptic
smoking lamp is lit

Smoking Lamp?

88 posted on 08/01/2002 5:42:48 AM PDT by SheLion
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To: HowlinglyMind-BendingAbsurdity
Dr Fahid Mohammed Camel

89 posted on 08/01/2002 5:45:01 AM PDT by Clovis_Skeptic
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To: Rome2000
#52....... 15% is not factual, it's more like 3%.
90 posted on 08/01/2002 5:50:08 AM PDT by Great Dane
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To: SheLion
Oh sure! Just like if you "eh eh" too much, you will go blind.

For just being a "myth," there sure is a lot of literature out there on the subject including THIS.

Just check google and you will see TONS of similar material online.

91 posted on 08/01/2002 5:53:14 AM PDT by PJ-Comix
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To: Rome2000
I wouldn't assume that all smokers know that they have a 15% chance of getting lung cancer.

I saw one article citing a survey concluding that most smokers think cigarettes are eight times as harmful as they actually are.

92 posted on 08/01/2002 5:56:26 AM PDT by maryz
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To: SheLion
LOL!! That would be a great bumper sticker, or, better yet, a great "no smoking" sign for businesses, restaurants and other establishments run over by the Politically Correct Express, Limited. I know Der Fuehuer doesn't want us to smoke, but.. Come to think of it, how did a homosexual non-smoking socialist vegetarian get lumped into the 'right wing' anyway...? Hm.
93 posted on 08/01/2002 5:57:24 AM PDT by Freedom4US
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To: PJ-Comix
You have to consider the source. We have found through much research, that the anti smoking cartel will spin everything and twist the true facts.

For every link that the anti's put in print, we can produce a link to counteract it.

Medical Liars - Do It For The Money

And Doctors are the WORST ones to put forth inaccurate, deceitful and dishonest information about smoking. Most of them or their hospitals, are in the pocket of the Robert Wood Johnson Foundation. The more health care controls and restricts smoking, the higher grant money they will receive. They are chopping off the head of the smoker in order to feed from blood money from the RWJ Foundation:

More States Receive Funding To Fight Tobacco Use

94 posted on 08/01/2002 6:08:06 AM PDT by SheLion
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To: AppyPappy
The last time I bought a carton, it cost me $3.50

Geez, ya look great for your age, Methuselah.
;O)

95 posted on 08/01/2002 6:18:05 AM PDT by metesky
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To: PJ-Comix
Also, PJ, I don't know how old you are, but smoking has been around for hundreds and hundreds of years. How the heck did ANY of us live a good long life since we smoked?

Also, if smoking causes impotence, how do you explain the huge families people are having?

The anti's have an agenda to do away with smokers and smoking. They will blame EVERYTHING on smoking hoping to scare enough smokers into quitting. Once we have researched all of this nonsence, we aren't falling for it.

96 posted on 08/01/2002 6:21:55 AM PDT by SheLion
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Comment #97 Removed by Moderator

To: SheLion
When asked how many cartons of cigarettes he sells per month, Chief Wallace, a stocky man wearing two braids, denim shorts and flip-flops, responded, "It's none of your business."

Chief Wallace shrugged and lighted another cigarette. "If they're so bad, make them illegal," he said. "In the meantime, leave me alone."

ROFLOL! I adore Chief Wallace!

98 posted on 08/01/2002 6:29:39 AM PDT by RikaStrom
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To: LindaSOG
Good post, there!

Also:

The American Medical Association will KILL You!

99 posted on 08/01/2002 6:31:04 AM PDT by SheLion
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To: LindaSOG
These issues always remind me of a 20+ year WHO study released in 97/98 that revealed (much to their dismay) the risk factors of second hand smoke were negligible at best. They were damned embarrassed and the study received almost NO press coverage (I only found out about it cause I was on the ‘net and FR back then). If memory serves, only the overseas press had much to say about it.
I noted recently they tried to backpedal on the study and have “revised” its outcome/effects.

I smoke, it’s a dirty nasty filthy habit but hey, I’ve helped pay for the Browns and Indians stadium (sin tax) and now I’m paying more tax to help balance the state budget. Doesn’t that entitle me to a little respect? Perhaps not.

100 posted on 08/01/2002 6:32:06 AM PDT by fone
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