August 19, 2002

State Treasurer Douglas B. Roberts is issuing a warning to Michigan residents: Beware of illegal cigarette sales. On at least two occasions this week, advertisements have appeared in local newspapers promoting the sale of "tax free cigarettes," either through the Internet or by calling a toll-free phone number. Treasurer Roberts says, it’s important to know these advertisements violate both Michigan and federal law. "In addition, any individual who buys these ‘tax free cigarettes’ is also violating state law, and would personally be responsible for the full amount of the tax plus penalties of up to one-hundred percent of the tax."

According to Michigan law, any cigarettes sold directly to consumers in Michigan, must include the state cigarette tax and display a Michigan cigarette stamp on each pack. Cigarettes that do not carry a stamp and therefore have not been properly taxed are illegal. Not only are consumers liable for the above-mentioned tax and penalties for each illegal pack of cigarettes, possession of 15 or more cartons of unstamped cigarettes constitutes a felony, punishable by up to five years in jail and a $50,000 fine. "It is unfortunate that some newspapers have chosen to run ads promoting tax evasion," says Roberts. "But what may be even more unfortunate is the possibility that honest, forth-right taxpayers might be duped into buying illegal cigarettes." Roberts also says, the Michigan Department of Treasury will pursue enforcement of those who choose to sell and/or purchase contraband cigarettes.