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Wash. Cracks Down on Internet Tobacco Sales
July 18, 2005

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News Summary

A merchant selling cigarettes for the Seneca Nation has agreed to give Washington officials his customer list so the state can collect unpaid taxes on sales made over the Internet, the Buffalo News reported July 16.

The agreement reached in federal district court in Tacoma, Wash., is expected to have a huge impact on cigarette sales by the upstate New York tribe, as well as on purchasers in Washington, who will now be getting tax bills from the state. Some experts say the agreement will encourage other states to take similar steps to crack down on Internet tobacco sales, which have cost them millions in lost tax revenue.

"If this approach is followed by attorneys general in other states, it could have a very significant impact on curtailing cigarette sales," said Eric Lindblom of the Campaign for Tobacco-Free Kids. "I don't see why other states couldn't do the same thing if they choose to do so," agreed Cam Comfort, Washington's senior assistant attorney general.

While the defendant might have tried to raise tribal sovereignty as a defense, the defense lawyer in the Washington case said that would not have shielded the seller from the federal Jenkins Act, which requires all tobacco merchants to report their sales to out-of-state customers.

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