In a decision that could put a significant crimp in untaxed cigarette sales from the Poospatuck tribal reservation in Mastic, a federal judge has granted New York City's request for an injunction against sales to nonmembers of the Indian tribe.
U.S. District Judge Carol Amon, following a four-day hearing in May, found that sales from reservation smoke shops fueled a massive bootlegging trade of cheap smokes in New York City that deprived the city of tax revenue and reduced the effectiveness of anti-smoking programs.
Although untaxed sales to tribal members for their personal use are legal, Amon said the privately run smoke shops named in the suit had abused the privilege with bulk sales of massive quantities and efforts to help buyers evade police.
"Defendants' principal business model is to provide customers with the opportunity to purchase cigarettes at significantly reduced prices, without paying taxes," Amon wrote in the decision, issued late Tuesday.
The judge stayed the injunction for 30 days to give the defendants a chance to file an appeal.
New York City, in its lawsuit filed in 2008, alleged that reservation smoke shops had sold 24 million cartons since 2004 - more than 19,000 a day for the 300 residents of the 55-acre reservation. The city said Wednesday that untaxed sales from the reservation had cost it about $225 million in revenue from 2004 to 2008, and cost the state and city combined $840 million.
"The city will go after every dollar that is owed to city taxpayers," Mayor Michael Bloomberg said in a statement lauding the ruling.
Earlier in the case, Amon rejected an argument that the smoke shops and their owners, which are licensed by the Unkechaug tribe, could not be sued because they are part of a sovereign nation.
Lawyers for the smoke shops and their operators did not return calls Wednesday, but Harry Wallace, chief of the Unkechaug Indians who live on the reservation, predicted an appeal.
He said the decision was an unjustified intrusion into tribal affairs, and denounced Amon for ignoring a state court ruling issued last month by an appeals panel in Rochester that said state tax laws don't prohibit Indians from selling untaxed cigarettes to nontribal members on reservations.
"She ignored every legal precedent in our favor," said Wallace. "I'm curious about how a federal judge can simply ignore a state court on state law."
The injunction covers five smoke shops - Monique's, Peace Pipe Smoke Shop, Red Dot & Feather, Smoking Arrow and TDM - and nine individuals. Other reservation smoke shops settled earlier in the case.
Sep 9, 2009
Class offered to help smokers kick the butts
Fond du Lac Area Businesses On Health (FABOH) wants to help its members kick tobacco addiction by reimbursing those who complete a local cessation class.A pack of cigarettes will go up an additional 75 cents in Wisconsin for a total tax of $2.52 per pack starting Sept. 1. The increase makes Wisconsin's cigarette tax the fifth highest in the nation.
With the increase, the average price for a pack of cigarettes could be anywhere from $6 to $8.
"With the tobacco tax increase this September and Wisconsin going smoke-free in 2010, FABOH understands the importance of providing cessation services," said Jeff Butz, FABOH wellness director, in a press release. "For FABOH member company employees (or covered spouses) who are interested in quitting, the cost for the eight sessions is $125."
FABOH, he said, will reimburse the first 20 employees provided they attend a minimum of seven out of the eight classes and submit proof of attendance within 30 days of completing the class.
The class is also open to all community members who are interested, but reimbursement is only offered to FABOH members.
With the increase, the average price for a pack of cigarettes could be anywhere from $6 to $8.
"With the tobacco tax increase this September and Wisconsin going smoke-free in 2010, FABOH understands the importance of providing cessation services," said Jeff Butz, FABOH wellness director, in a press release. "For FABOH member company employees (or covered spouses) who are interested in quitting, the cost for the eight sessions is $125."
FABOH, he said, will reimburse the first 20 employees provided they attend a minimum of seven out of the eight classes and submit proof of attendance within 30 days of completing the class.
The class is also open to all community members who are interested, but reimbursement is only offered to FABOH members.
Class offered to help smokers kick the butts
Fond du Lac Area Businesses On Health (FABOH) wants to help its members kick tobacco addiction by reimbursing those who complete a local cessation class.A pack of cigarettes will go up an additional 75 cents in Wisconsin for a total tax of $2.52 per pack starting Sept. 1. The increase makes Wisconsin's cigarette tax the fifth highest in the nation.
With the increase, the average price for a pack of cigarettes could be anywhere from $6 to $8.
"With the tobacco tax increase this September and Wisconsin going smoke-free in 2010, FABOH understands the importance of providing cessation services," said Jeff Butz, FABOH wellness director, in a press release. "For FABOH member company employees (or covered spouses) who are interested in quitting, the cost for the eight sessions is $125."
FABOH, he said, will reimburse the first 20 employees provided they attend a minimum of seven out of the eight classes and submit proof of attendance within 30 days of completing the class.
The class is also open to all community members who are interested, but reimbursement is only offered to FABOH members.
With the increase, the average price for a pack of cigarettes could be anywhere from $6 to $8.
"With the tobacco tax increase this September and Wisconsin going smoke-free in 2010, FABOH understands the importance of providing cessation services," said Jeff Butz, FABOH wellness director, in a press release. "For FABOH member company employees (or covered spouses) who are interested in quitting, the cost for the eight sessions is $125."
FABOH, he said, will reimburse the first 20 employees provided they attend a minimum of seven out of the eight classes and submit proof of attendance within 30 days of completing the class.
The class is also open to all community members who are interested, but reimbursement is only offered to FABOH members.
Sep 7, 2009
Eyewitness News Tests Fire Safe Cigarettes
Smokers in Kansas may not realize it, but the cigarettes they're buying now are different from what was on the shelves just two months ago. In July, fire safe cigarettes became the only kind available in the state.
Experts hope the new cigarettes will cause fewer fires because they go out much more quickly. Fire safe cigarettes have several layers of paper surrounding the tobacco making it more difficult for oxygen to feed a burning cigarette. It means if the cigarette isn't actively being smoked, it'll burn itself out.
Since 2006, Wichita has seen 226 cigarette-caused fires.
"We deal with people who are having their worst day ever," says Wichita Fire Captain Stuart Bevis.
Capt. Bevis joined Eyewitness News Thursday to help compare the differences between the old and new cigarettes. He's investigated around 2,000 fires in his time with the department.
"They'll say nothing bad's ever happened to them when they've fallen asleep with their cigarette or had too much alcohol with their cigarette," says Capt. Bevis, "because it only takes one time. When that one time happens, it's a tragedy."
In our first test, we simply lit one of each type of cigarette and laid them in an ash tray. The fire safe cigarette went out in less than two minutes while the old cigarette burned all the way to the filter for 16 minutes.
"It does have a chance to be a little bit better," Capt. Bevis says of the new cigarettes. "Two and a half minutes smoldering against 15? That gives us a much better chance of it going out before something bad happens."
In the second test, we placed the lit cigarettes on an old recliner's cushion. Once again, the fire safe cigarette only takes a couple of minutes to go out, leaving a small burn in the polyester fabric. The old cigarette burns to the filter, leaving a long burn mark and almost getting to the cotton fabric inside the cushion's cover.
We use our last two tests checking what typically happens in a cigarette-caused fire, a cigarette that falls in a cushion corner or into a crevice. In these tests, both types of cigarettes burn to the filter.
In one of the tests, the fire safe cigarette chars a piece of highly-combustible lint. It likely means the recliner wasn't far from going up in flames. Capt. Bevis says it's a sign that just because the product is safer doesn't mean it's safe.
"They can have cigarettes that are supposed to put themselves out in two-and-a-half minutes, but if all the right circumstances fall into place, it can still lead to a fire if they're dealt with carelessly," says Capt. Bevis.
We wanted to know if you've ever heard of fire safe cigarettes. The results of our exclusive Fact Finder 12 scientific survey show 28% of you say you've heard of the new cigarettes while most, 72%, say you have not.
Not everyone likes the new cigarettes. More than 8,600 smokers nationwide have signed an online petition calling for a repeal of fire safe cigarettes. They complain the new cigarettes taste bad and have more carbon monoxide in each drag.
Experts hope the new cigarettes will cause fewer fires because they go out much more quickly. Fire safe cigarettes have several layers of paper surrounding the tobacco making it more difficult for oxygen to feed a burning cigarette. It means if the cigarette isn't actively being smoked, it'll burn itself out.
Since 2006, Wichita has seen 226 cigarette-caused fires.
"We deal with people who are having their worst day ever," says Wichita Fire Captain Stuart Bevis.
Capt. Bevis joined Eyewitness News Thursday to help compare the differences between the old and new cigarettes. He's investigated around 2,000 fires in his time with the department.
"They'll say nothing bad's ever happened to them when they've fallen asleep with their cigarette or had too much alcohol with their cigarette," says Capt. Bevis, "because it only takes one time. When that one time happens, it's a tragedy."
In our first test, we simply lit one of each type of cigarette and laid them in an ash tray. The fire safe cigarette went out in less than two minutes while the old cigarette burned all the way to the filter for 16 minutes.
"It does have a chance to be a little bit better," Capt. Bevis says of the new cigarettes. "Two and a half minutes smoldering against 15? That gives us a much better chance of it going out before something bad happens."
In the second test, we placed the lit cigarettes on an old recliner's cushion. Once again, the fire safe cigarette only takes a couple of minutes to go out, leaving a small burn in the polyester fabric. The old cigarette burns to the filter, leaving a long burn mark and almost getting to the cotton fabric inside the cushion's cover.
We use our last two tests checking what typically happens in a cigarette-caused fire, a cigarette that falls in a cushion corner or into a crevice. In these tests, both types of cigarettes burn to the filter.
In one of the tests, the fire safe cigarette chars a piece of highly-combustible lint. It likely means the recliner wasn't far from going up in flames. Capt. Bevis says it's a sign that just because the product is safer doesn't mean it's safe.
"They can have cigarettes that are supposed to put themselves out in two-and-a-half minutes, but if all the right circumstances fall into place, it can still lead to a fire if they're dealt with carelessly," says Capt. Bevis.
We wanted to know if you've ever heard of fire safe cigarettes. The results of our exclusive Fact Finder 12 scientific survey show 28% of you say you've heard of the new cigarettes while most, 72%, say you have not.
Not everyone likes the new cigarettes. More than 8,600 smokers nationwide have signed an online petition calling for a repeal of fire safe cigarettes. They complain the new cigarettes taste bad and have more carbon monoxide in each drag.
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