Confiscation of illegal cigarettes plummets

The number of illegal cigarettes confiscated in Wisconsin plummeted to 763 packs in the fiscal year that ended June 30 after soaring after a $1 per pack cigarette tax increase in January 2008. In the months surrounding the 2008 increase, the state Department of Revenue confiscated 12,040 packs of cigarettes that lacked the required Wisconsin tax stamp. 
Confiscation numbers vary from year to year based on market and enforcement activity, said Department of Revenue spokeswoman Jessica Iverson. Ahead of the tax increase in 2008, revenue agents were working to educate retailers about the increase and check existing inventories for the tax stamp, she said. 
"Because we had such a wide presence out in the field leading up to the cigarette tax increase, our agents do shift focus to other enforcement activities," Iverson said.
The number of cigarettes confiscated this fiscal year could jump again with another tax increase on the horizon. 
The state cigarette tax will increase from $1.77 a pack to $2.52 a pack on Sept. 1. The increase, part of the budget passed this summer, is expected to generate about $300 million for the state over the next two years, according to the Legislative Fiscal Bureau. 
The Revenue Department is mounting a similar field presence ahead of that tax increase, Iverson said. All retailers are required to do an inventory of their cigarettes and pay a floor tax on those packs. 
Pam Christenson, director of public affairs for the Wisconsin Petroleum Marketers and Convenience Store Association, said the group’s members typically buy cigarettes from wholesalers that already have tax stamps. 
"(Our members) are very aware of the regulations and are good about following the rules and purchasing the legal stamped cigarettes," Christenson said. 
With the Sept. 1 increase, Wisconsin’s cigarette tax will be fifth highest nationally and tops among surrounding states, according to the Campaign for Tobacco-Free Kids. In Minnesota, it is $1.56 a pack; in Michigan, $2; in Iowa, $1.36; and in Illinois, 98 cents. The federal cigarette tax rose by 62 cents a pack in April.

Business owners worry about recent cigarette thefts

BOCA RATON, Fl -- Police in Boca Raton are still looking for the people involved in 5 recent cigarette thefts.
The most recent robbery happened at a Publix, where 3 thieves made out with $8,000 worth of cigarettes.
Police say it may be a sign of the tough economic times.
"There is a black market for anything out there, what these criminals are doing is, they are probably selling the cigarettes out in the street or to smaller convenience stores,' said Mark Economou, with Boca Raton Police. 
Since the Federal Government's $1.00 tax hike, Police say cigarettes have become a lot more valuable to criminals.
Business owners like Muhammad Khan, who owns a small convenience store on Dixie Highway in West Palm Beach, say they are afraid they will be the next target. 
"We are afraid of loosing our money, and we are afraid of loosing our life," said Khan. 
Since May there have been 5 cases of cigarette thefts in Boca Raton, together, the loss totaled more than $10,000.
Police say they are targeting big stores like Publix and CVS, but smaller convenience store owners should also be careful. 
"Stores that sell cigarettes should take extra steps to keep them locked up and behind glass, because these people know what they are doing," said Economou.