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Such vast price discrepancies cigarettes create an easy money opportunity for smugglers, some of whom are alleged to have links to terrorist organizations, Kohl said. Last month, for example, federal officers arrested dute free cigarettes participants in a ring that smuggled at least $8 million worth of cigarettes from North Carolina to Michigan and allegedly sent the proceed marlboro cigarettes to Hezbollah, the Islamic militant Cigarettes Store group.

Domkus admits that the business of cheap cigarettes selling tax-free smokes has attracted some elements of organized crime, but believes discount cigarettes the states and cities created an opportunity for criminals cigarettes.

"If taxes were lower, there would be no cheap cigarettes discount need to smuggle, and organized crime wouldn’t get involved because there’s buy cigarettes no money there," he said.

That logic was echoed in a study completed cigarettes online earlier this year by economist Patrick Fleenor and published by the Cato Institute, a deregulation-oriented think tank. The study found that in the four-month period after New York City raised its tobacco taxes to the highest level in the country, sales of taxed cigarettes fell by more than 50 percent compared to the same period the prior year.

Fleenor believes it is unlikely that online cigarette merchants buy cigarettes are fronts for terrorist organizations. Most organized crime activity in the tobacco contraband business involves old-fashioned "over-the-road bootleggers" who cigarettes online buy cigarettes in states with low taxes and drive them to places with high taxes cheap cigarettes.

It's possible, Fleenor said, that online merchants actually buy cigarettes make it harder for bootleggers to flourish, since the cigarettes online Internet allows smokers to comparison shop for discount, tax-free cigarettes. cheap cigarettes discount

Still, there's a good reason why the growth of online cigarette sales cigarettes online is making state tax collectors antsy. cigarettes A recent report published by the U.S. General Accounting Office, cited by Kohl, predicted states will lose about $1.5 billion in tax revenues by 2005 if Internet tobacco sales buy cigarettes continue at current levels. Cigarettes Store

Currently, online cigarette merchants discount cigarettes are supposed to adhere to the Jenkins Act, a law passed in 1949 that requires anyone who sells cigarettes across a state line to an individual or unlicensed distributor to report the transaction to the state's tobacco tax administrator. buy cigarettes

To help states get their taxes, the cigarettes Senate bill would strengthen reporting requirements for interstate cigarette sellers and raise the crime of not reporting to a felony. It also would lower the number of cigarettes online cigarettes to be treated as contraband from 60,000 to 10,000.

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