NCJ Number
77167
Date Published
1980
Length
84 pages
Annotation
The results of a study of the laws and procedures in Massachusetts and other States for the prevention of cigarette bootlegging are presented.
Abstract
While the State's Department of Revenue estimates that cigarette bootlegging is resulting in losses of about $12 million annually, the Legislative Research Bureau has estimated that $17 million were lost in 1979 alone. This translates into approximately 8 million cartons of cigarettes upon which the State excise tax had not been paid. Information was gathered from reports by a variety of governmental bodies and enforcement agencies and from recent congressional hearings on the subject. In addition, numerous officials in other States were contacted by mail or telephone to solicit their views. As a result, the economic importance of tobacco to both the States and the Federal Government was determined, and the historical development of cigarette taxation on both levels was traced. Furthermore, the following methods of cigarette tax evasion are defined and discussed with particular emphasis on Massachussetts' experiences: nonprofit, casual smuggling by individuals for themselves and friends; organized smuggling for illegal resale; mail order purchases; and purchases through such tax-free outlets as international points of entry and military post exchanges. Past attempts to elicit Federal assistance in curtailing cigarette smuggling are summarized, and the recently enacted Federal 'contraband' law is discussed. Also included is a listing of recent enforcement actions taken by the Federal Bureau of Alcohol, Tobacco and Firearms. Finally, the Department of Revenue's past and present efforts to curtail cigarette smuggling are evaluated, with particular emphasis on factors which have hindered their effectiveness, and current proposals for legislative action to enhance enforcement efforts are presented along with a brief discussion of other States' cigarette tax enforcement programs. Data tables and footnotes are included. (Author abstract modified)