8/14/2019 092107 Cigarette Enforcement FINAL

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FOR IMMEDIATE RELEASE CONTACT: SOPHIE MOERYSEPTEMBER 21, 2007 (615) 741-2461 (OFFICE)(615) 545-1734 (CELL)

REVENUE PLANS FOR CIGARETTE SURVEILLANCE AT STATE LINE

TRANSPORTING MORE THAN TWO CARTONS ACROSS STATE LINE IS ILLEGAL

NASHVILLE, Tenn. The Tennessee Department of Revenue’s Special Investigations Section will beconducting surveillance of out-of-state tobacco retailers located near the state line for Tennessee residentspurchasing cigarettes. On July 1, 2007, Tennessee’s cigarette tax increased from 20 cents per pack to 62 centsper pack.

“As a result of this legislation, Tennesseans may travel to neighboring states to purchase cigarettes in order toavoid paying Tennessee cigarette tax,” said Revenue Commissioner Reagan Farr. “Tennesseans should knowthat the law requires cigarettes purchased outside of the state to bear a Tennessee tobacco stamp, otherwise thecigarettes may be considered contraband.”

Possessing more than 20 packs (or two cartons) of cigarettes not bearing Tennessee revenue stamps is amisdemeanor. Such products and any vehicle(s) used to transport them are subject to seizure. Possession of more than 25 cartons of untaxed cigarettes is a Class E felony.

“If Revenue agents believe that an individual is transporting more than two cartons of cigarettes into Tennessee,the vehicle carrying the cigarettes will be stopped and searched,” Commissioner Farr said. “If more than two

cartons are found, the cigarettes will be seized and agents have the discretion to make arrests and seize thevehicle.”

Public Chapter 368 increased the tax on cigarettes from $0.20 to $0.62 per pack. Additional revenue from theincrease is earmarked for education (approximately $195 million annually), agricultural enhancements ($21million annually) and trauma centers statewide ($12 million annually). The Department of Revenue administersthe collection and enforcement of Tennessee tobacco taxes.

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title andregistration laws established by the legislature and the collection of taxes and fees associated with those laws.The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2006-2007fiscal year, the department collected $11.0 billion in state taxes and fees. In addition to collecting state taxes,$1.9 billion of local sales tax was collected by the department for local governments during the 2006-2007 fiscalyear. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort toencourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution tothe various state funds and local units of government. To learn more about the department, log on towww.Tennessee.gov/revenue .

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This press release can be accessed online at http://state.tn.us/revenue/newsreleases/2007/cigenforce.htm .