2010 Legislative Conference Resolutions
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Standing Committee on Native American Affairs and Gaming
RESOLUTION CALLING ON THE FEDERAL GOVERNMENT TO SUPPORT AND IMPLEMENT THE PREVENT ALL CIGARETTE TRAFFICING (PACT) ACT OF 2009
WHEREAS, NYSAC supports S. 1147, the Prevent All Cigarette Trafficking Act of 2009 (the “PACT Act”); and
WHEREAS, states are currently losing hundreds of millions of dollars each year through Internet-based tax evasion, and those losses are projected to rise into the billions; and
WHEREAS, the PACT Act closes a number of gaps in current federal law regulating “remote” or “delivery” sales of cigarettes and smokeless tobacco products; and
WHEREAS, remote sales cause a number of harms including; States Lose Substantial Tax Revenues, Remote Sales Can Undercut State Laws Intended to Prevent Youth Access to Tobacco Products and Legitimate Businesses are Unfairly Disadvantaged; and
WHEREAS, internet and other “remote” sales of cigarettes and smokeless tobacco products have significant adverse consequences by undercutting state laws that prevent youth access to tobacco; and
WHEREAS, the PACT Act contains a number of provisions to decrease illegal internet sales including; the requirement of payment of state and local excise taxes on remote sales, regulation of delivery methods, age-verification and shipping requirements, making cigarettes and smokeless tobacco nonmailable to consumers through the U.S. Postal Service and giving the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATFE) authority to inspect records and inventories of remote sellers; and
WHEREAS, the PACT Act strengthens the Jenkins Act; by making it a federal offense for any seller making a sale via telephone, the mail, or the Internet to fail to comply with all state tax laws; and
WHEREAS, The legislation would empower states to enforce the federal law against out-of-state sellers sending delivery sales into its state and gives state attorneys general the authority to seek injunctive relief and civil penalties against violators:
NOW THEREFORE BE IT RESOLVED, that NYSAC calls on the Federal Government to take any and all necessary action to insure the passage of S. 1147, the Prevent All Cigarette Trafficking Act of 2009 (the “PACT Act”), and promote efforts to stop the sale of untaxed contraband cigarettes for the benefit of state and local governments.
BE IT FURTHER RESOLVED, that the New York State Association of Counties shall forward copies of this resolution to Governor Paterson, the New York Congressional Delegation, and all others deemed necessary and proper.