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An Indian nation from Central New York is
placing tobacco kiosks in some Buffalo-area convenience stores that
will allow the electronic mail ordering of tax-free cigarettes at a
savings of up to $20 a carton. The move, a first according to industry
officials, came Tuesday, the day before today's 39-cents-per-pack state
tax increase. That increase brings the total discount cigarettes online
state tax on a pack of smokes to $1.50, the highest in the nation. The
Oneida Indian Nation, the nation that operates the Turning Stone
gambling casino at Verona, installed its first Internet-based tobacco
kiosk discount cigarettes online in the Yellow Goose
convenience store on Colvin Avenue, the first of six planned
installations.

June 15, 2004 - ANCHORAGE - After receiving
several tips that cigarettes with Russian writing were being sold in
Marshall, the village law enforcement officer busted a local shop. The
discount cigarettes online case involved 500 packs of
Russian-manufactured Marlboros that were purchased over the Internet.
The cigarettes were almost all sold illegally for more than a 400
percent profit, according to the Anchorage Daily News.
Marshall, a western Alaska village discount cigarettes online of 370 in
the Yukon-Kuskokwim Delta, is too small to have its own troopers post,
but Richard Ellis, the local village public safety officer, works
closely with state law enforcement.According to troopers, Ellis got
discount cigarettes online several tips in April that a video store in
Marshall was selling cigarettes with Russian
discount cigarettes online writing on them. He started investigating
with the help of the Alaska Department of Revenue's Tax Division, which
handles the state's cigarette tax program. Cigarettes are taxed a
dollar a pack in Alaska. Residents can legally order cigarettes over
the Internet but are required by state law to get a license from the
Revenue Department first and purchase Alaska tax stamps for every pack
of smokes they bring in, according to Johanna Bales, who manages the
state's tobacco tax program.

The intent of the stamp is to ensure that importers pay the state tax,
Bales said. The shopkeeper in Marshall had neither a license nor
stamps, troopers said.
The cigarette packs he was selling also lacked the required surgeon
general's warning, Bales said. Even if discount cigarettes
online they had a tax stamp on them, it's illegal to put a tax
stamp on them" without that health warning, she said.
On May 12, Ellis seized 15 packs of Marlboros from the shopkeeper - the
last of the 500. The shopkeeper could face felony charges for importing
illegal and untaxed cigarettes into the state. Charles King, a state
tobacco and gambling investigator who assisted in the investigation,
said the shopkeeper bought the cigarettes over the Internet from a
distributor in discount cigarettes online Florida or Alabama for around
$14 a carton, or $1.40 a pack, and then sold them for about $6 a pack.
"He made good money," King said. Trooper Karl Main said he wasn't too
surprised to hear that there were black-market cigarettes in rural
Alaska. With higher prices and less law enforcement than most discount
cigarettes online places, "rural areas can become somewhat of
a popular ground for this type of behavior," he said.

Tobacco taxes put about $47 million into Alaska's coffers annually,
according to Bales, the program manager. State and federal officials
don't know how much revenue is lost to illegal sales. Bales said that
in 2001, two businesses in the Lower 48 that sold cigarettes over the
Internet revealed, at the state's request, how many customers they had
in Alaska. One company reported selling cigarettes to 600 individuals
in the state discount cigarettes online over a 13-month period. The
other showed 400 over a 10-month period. The state believes it lost
about $600,000 in unpaid taxes in those two cases discount cigarettes
online alone, Bales said.