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NYC sues online
cigarettes sellers
New
York City sued seven operators of cigarettes online retailers, charging
them with making illegal shipments and evading taxes.
The suit seeks to
bar the defendants from buy cigarettes into the state
and to recoup millions of dollars in tax losses. The retailers are charged with
violating a state law enacted in March that bans Internet and mail-order sales
of cigarettes. The suit also alleges
violations of the federal "Jenkins Act," which requires retailers shipping
cigarettes across state lines to report the shipments for tax purposes. City
officials say that with more than 400 such Internet sites in existence, it is
difficult to pin down the total tax losses, but they are expected to be
substantial.
According to a source, one online retailer was able to
deliver enough cigarettes in eight months through the United Parcel Service to
create a $1.5 million tax loss for the state.
In January, the City filed
a lawsuit against a separate set of Cigarettes Store , alleging
violations of the "Jenkins Act". The suit is still pending.
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