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.