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Near as the GAO can tell, no one has been fined or jailed.State
officials highly recommend making Jenkins cheap cigarettes
online violations a felony.A good start, but that isn't likely to
compel individual smokers to get square with the tax collector, or even
deter the merchant violators marlboro cigarettes
online without an accompanying aggressive enforcement campaign.The GAO
report says that a violation of the Jenkins Act is only a misdemeanor
that carries a cheap cigarettes online maximum $1,000
fine and six months in the can.

That's how they're doing.
The report doesn't get at a precise dollar figure for the lost tax
revenue but does cite a year-old Forrester Research estimate that U.S.
online tobacco sales will reach $5 billion by 2005 and marlboro
cigarettes online that the cheap cigarettes online states will
lose out on $1.4 billion as a result. How are the states doing? Let's
put it this way: Next time someone cheap cigarettes online lights a cigarette
near you, try grabbing a handful of the smoke. . . .

Ah, the Jenkins Act. There lies the rub between old law and new
technology, as the lawmakers who passed the act - in 1949 - obviously
knew not of the Internet. Nonetheless, the cheap cigarettes
online act requires vendors - including online merchants - who
ship cigarettes into another state to anyone other than a licensed
distributor to report the details of all such transactions to the tax
authorities in those states."Consumers marlboro cigarettes
online who use the Internet to buy cheap cigarettes online
cigarettes from vendors in other states are liable for their own
state's cigarette excise tax and, in some cases,
sales and/or use taxes," the GAO report explains. "States can learn of
such purchases and the taxes due when vendors comply with the Jenkins
Act."
