Cigarette Surveillance Ends

Source from:  By ERIK SCHELZIG Associated Press 8, January 2008  01/10/2008

Tennessee's Revenue Department is ending its surveillance program to catch people trying to avoid higher taxes by bringing in large numbers of cigarettes from out of state. Commissioner Reagan Farr told The Associated Press on Monday that the program accomplished its objective of educating people that only 20 packs, or two cartons, can legally be transported across state lines. "We feel that we've been very successful in this program, and it's accomplished the majority of our goals," Farr said. "So we are winding down our regularly scheduled surveillance activities." The department will still enforce the law, but it won't conduct scheduled surveillance of tobacco stores in neighboring states, Farr said. Revenue agents seized more than 31,000 packs from the end of September through December. The state launched the program because its cigarette tax had jumped higher than its eight neighbors - from 20 cents a pack to 62 cents - in July. Agents have observed that more people are sticking to the two-carton - or 20-pack - maximum when buying cigarettes in neighboring states, Farr said. The state seized 8,104 packs in December, down nearly 30 percent from the previous month. Agents seized cigarettes but stopped short of issuing citations over the course of the surveillance program. Future violations will be punished with citations, Farr said. Exceeding the two-carton maximum can be charged as a misdemeanor, while anybody bringing in more than 25 cartons can be charged with a felony. Farr has had to defend the enforcement program against criticism that it was a heavy-handed attempt by the state government to force people to pay higher taxes. About 10 agents have been involved in the enforcement program. The increased efforts were in addition to existing enforcement against violations like counterfeit or missing tax stamps or illegal advertising and promotions. Farr said agents will continue to focus on those issues and will also turn their attention to a newer one: "We really feel like we have a problem with Internet sales and we're looking to address it." Farr also wouldn't rule out returning to the border surveillance program if the department receives tips or complaints about violations. Enditem