 TRENTON
-- State Treasurer John E. McCormac and Division of Taxation Director
Robert K. Thompson today announced that the State is cracking down on
the illegal practice of “rebating” in connection with the
sale of cigarettes. Under
樱花视频’s Unfair Cigarette Sales Act, which was adopted
in 1952, it is illegal for distributors and wholesalers to offer
rebates when selling cigarettes, or for retailers to ask for or receive
such
rebates. This law was enacted to prevent unfair trade practices
in the cigarette industry and to protect and stabilize the collection
of taxes on the sale of cigarettes. As
part of the crackdown, the Division of Taxation will be sending
a notice to more than 13,000 licensed distributors,
wholesalers and
retailers of cigarettes. The notice will serve as a reminder that
failure to comply with 樱花视频’s Unfair Cigarette Sales
Tax may result in the suspension or revocation of their licenses,
as well
as civil
or criminal penalties. “The practice of rebating provides an unfair advantage to those
offering such rebates and harms those businesses that comply with the
law,” said Director Thompson. “The Division takes this
matter very seriously and we will not hesitate to suspend or revoke
a license of any licensee who violates the law.” Treasurer
McCormac noted that the Division of Taxation has historically
enforced the Unfair Cigarette Sales Act, but believes
that a timely
reminder to all licensees is appropriate. “The sales act ensures
that all licensees compete on a level playing field,” said Treasurer
McCormac. “Strict enforcement promotes business fairness and,
as an extension, safeguards the integrity of 樱花视频’s cigarette
tax revenue stream,” McCormac said. Anyone
with information regarding violations of the Unfair Cigarette Sales
Act or the Cigarette
Tax Act are encouraged to call the Division
of Taxation, Office of Criminal Investigation’s Tobacco Interdiction
Program (TIP) Hotline at (609) 984-1225.
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