News Summary

Springfield, Ohio — Smokers who bought cigarettes online hoping to avoid potentially costly taxes are in for a surprise — Ohio Department of Taxation officials have begun mailing letters to collect more than $2.1 million from Internet purchasers for unpaid cigarette excise and sales taxes.

The department is mailing out 5,468 bills over the next few weeks for unpaid taxes on cigarettes purchased online between July 2007 and March 2008, , according to a press release.

ODT spokesman Mike McKenney said information about how many smokers in Clark County will be billed is not yet available.

Director of Communications John Kohlstrand said the department will not release the names of violators.

State law prohibits Internet purchase of cigarettes. The last time the state billed for unpaid cigarette taxes in 2006, nearly $569,000 were collected, officials said.

A federal law requires vendors who sell cigarettes across state lines to report those sales to the states where the sales are made, the statement said.

Sales tax and $1.25 excise tax are collected on cigarettes sold in Ohio.

"Our goal here is to enforce the law, out of fairness to consumers who do play by the rules and to Ohio business owners who are operating responsibly," Tax Commissioner Richard A. Levin said in a statement.

Contact this reporter at (937) 328-0374 or boutten@coxohio.com.

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