September 30, 2005

NILES.  The Michigan State Police (MSP) Tobacco Tax Enforcement Team recently seized 139 cartons of cigarettes, 435 loose packs of cigarettes and 70 units of non-cigarette tobacco from a store in Niles.   The retail value of the untaxed tobacco is estimated at $8,200.  Felony charges for violation of the Tobacco Tax Act will be sought against the store’s owner.

During an inspection at the store, investigators observed cigarette cartons that were being held together with tape, instead of glue.  Upon further inspection it was noticed that the packs of cigarettes either did not contain stamps or had partially affixed Michigan tax stamps, which is an illegal method referred to as tape lifting. 

Tape lifting is a process in which a legitimate Michigan tax stamp is partially lifted off a pack of cigarettes, then taped onto a different pack to make it appear as if the appropriate taxes have been paid.  Since the cigarettes often times come from a state that does not utilize the stamping system, this allows the retailer to make an illegal profit from the sale by selling the contraband cigarettes for the same cost as a legitimate stamped pack. 

The MSP Tobacco Tax Enforcement Team has statewide responsibility for ensuring compliance with the Michigan Tobacco Tax Act.   It is a violation of the Act to possess, acquire, transport or sell any quantity of untaxed tobacco in Michigan.  Persons in violation are subject to five years imprisonment, along with forfeiture of all illegally possessed tobacco and vehicles used to transport the product, along with civil fines and penalties from the Michigan Department of Treasury.

If anyone has information on individuals or retailers smuggling tobacco into Michigan to avoid paying the required tax, please contact the Michigan Department of Treasury tip line at 1-800-292-2894.   Callers can remain anonymous.

FOR ADDITIONAL INFORMATION:

Detective Sergeant Angie Fleming, MSP Tobacco Tax Enforcement Team, (734) 525-4514