New York - A federal appellate court on Tuesday allowed New York City to move forward with four lawsuits against roughly 10 online cigarette vendors, accusing the out-of-state companies of violating federal and state laws by failing to report cigarette purchases by city residents.
The 2 to 1 decision, by the United States Court of Appeals for the Second Circuit, was a limited victory for the Bloomberg administration, but the future of the litigation remained uncertain.
Although a 2000 state law banned direct sales of cigarettes over the Internet, and by telephone or mail, officials acknowledge that city residents commonly buy cigarettes online and maintain that, when such sales occur, the state and city are unfairly cheated of excise and sales taxes — to the sum of “tens if not hundreds of millions of dollars a year,” according to the city. More... Nutty News - Cigarettes America Front Page News
The 2 to 1 decision, by the United States Court of Appeals for the Second Circuit, was a limited victory for the Bloomberg administration, but the future of the litigation remained uncertain.
Although a 2000 state law banned direct sales of cigarettes over the Internet, and by telephone or mail, officials acknowledge that city residents commonly buy cigarettes online and maintain that, when such sales occur, the state and city are unfairly cheated of excise and sales taxes — to the sum of “tens if not hundreds of millions of dollars a year,” according to the city. More... Nutty News - Cigarettes America Front Page News
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