Who Could Have Seen This Coming?
March 11th, 2006 | by Craig |The Gazette headline reads: State launches campaign to stop illegal cigarette sales
What?? People are buying cigarettes on-line and out-of-state to avoid paying the tax?
[Montana Department of Justice's Gambling Investigation Bureau supervisor Tom] Oberweiser said the increase in illegal cigarette purchases appears to be tied to the new tobacco tax approved by voters in 2004. Initiative 149, which took effect in January 2005, increased the tax on cigarettes by $1 a pack.
Who woulda thunk it?
I mean, besides me.
At a $1.10 difference per pack in tax alone, going to Cody for just two cartons would damn near pay for your gas.
If you get some of your friends to kick in, and buy in bulk. . .
Wyoming might get some of that sales tax back that they lose to Costco up here.
More from the article:
Montanans who buy cigarettes online are simply trying to save money, he said, but they’re costing local business and the state.
Lee Baerlocher, bureau chief with the Montana Department of Revenue, said a study conducted by his department estimated that illegal tobacco sales cost the state $3 million to $4 million each year in lost tax revenue.
“It’s hard to get a hold of the exact figures because of the nature of the Internet,” Baerlocher said. “It could be much higher.”
I look for this to be seriously criminalized soon. Can’t be losing revenue from a tax that was designed to raise revenue.
3 Responses to “Who Could Have Seen This Coming?”
By Irene on Mar 12, 2006 | Reply
*guffawing* Okay, that made my Sunday morning here in the most densely populated state in the Union. HUNDREDS of Montanans have been buying cigs illegally? OH HORRORS!
Damn I get homesick.
By Jim - PRS on Mar 13, 2006 | Reply
Spaeking as another person from the most densly populated state in the Union, I assure you that no one breaks the law around here. Ever.
By Rocky Smith on Mar 15, 2006 | Reply
Could there be a more heinous crime than denying the state of Montana its rightful tax money? Not if you work for the Department of Revenue. If someone breaks into keno and poker machines and steals the money, my company doesn’t have to pay taxes (15% right off the top and then again on your income- that’s two taxes on the same income) on that lost revenue. The state vigorously pursues thieves of this type. After all- they’re stealing from the government, not some lowly citizen. They’d be as well off to rob a Post Office!