NY sues UPS for shipping millions of untaxed cigarettes

Discussion in 'Lounge' started by Rachgier, Feb 18, 2015.

  1. Rachgier

    Rachgier Administrator Staff Member


    I think I just had my WTF moment of the day.....

    NY sues UPS for shipping millions of untaxed cigarettes

    February 18, 2015

    Updated Feb 18, 2015 at 3:20 PM EST

    (WBNG Binghamton) United Parcel Service Inc. is facing a lawsuit alleging that the shipping giant transported 136 million contraband cigarettes -- or nearly 700,000 untaxed cartons -- across New York state.

    The lawsuit was jointly filed in federal court in Manhattan by the state and the City of New York, according to a press release sent Thursday by Attorney General Eric Schneiderman and New York City Corporation Counsel Zachary Carter.

    “We contend that UPS cost this state millions in revenue and is helping to make illegal, low-cost cigarettes available to our young people, who are disproportionally lured to smoking by lower costs," Schneiderman said. "To limit smoking, which remains the number one preventable public health crisis today, we must stop the flow of illegal cigarettes and enforce the law.”

    UPS is accused of making nearly 80,000 separate, illegal shipments during a four-year period, between at least 2010 and 2014.

    This has resulted in a direct tax loss to the state and city of over $29.7 million and $4.7 million, according to Schneiderman's office.

    "UPS has deliberately turned a blind eye to the fact that millions of dollars’ worth of untaxed cigarettes are shipped each year through its facilities, as outlined in our complaint,” Carter said.

    Of the total number of UPS deliveries in New York, the complaint alleges that almost 36,000 went to addresses in the five boroughs and at least 70 were handed to a child, which is illegal. That's according to UPS’s own records.

    The complaint seeks damages and penalties totaling more than $180 million.
  2. ajole

    ajole Supporting Member

    NE Utah
    How do they know this? How would UPS know what was being sent

    Why did they let it go for years, if they knew? Did they tell UPS they were being used as a mule?

    Is there a different form or signature for "untaxed smokes"?

    This sounds like a whole lot of bad stinky government BS to me.
    are the state folk trying to distract us all from the corruption investigations?

  3. Because UPS has what's known as 'deep pockets'.
  4. Liberty

    Liberty Shhh! Lifetime Supporter

    I hope that not only does the State of New York lose, but that UPS countersues the PANTS off of them and wins.
  5. lsi1

    lsi1 Member

    whats next do the stores and gas stations on the PA NY border that have a steady stream of cars with NY plates on them with their drivers getting gas and cigarettes have to prepare for a lawsuit as well?

    Now that ups will have to inspect the contents of every package they ship we should just rename them TSA because those guys are the real package handlers.
  6. Rachgier

    Rachgier Administrator Staff Member

    Actually, there was a bill on the floor trying to ban any and all cigarettes purchased outside of NY being brought in to the state because all of the stores on the PA line are so much cheaper. It died faster than it started because some folks pointed out that the state couldn't regulate interstate commerce. They have also gone after the Indian Reservations for their cigarette sales being state tax free.

    I am so regretting picking up the habit again.
  7. Back2School

    Back2School Member

    I just hope UPS decides to not service NY. Maybe more businesses can join the ban. or we can build a wall around the state (or at least the city) and let the animals go at it

    NY embargo!
  8. They are cheaper here in pa!?!?!?!

    when i lived in VA my friends and relatives were always asking me to smuggle them back $35 cartons of MAlboro

    ....not that i ever did, that would be tax evasion or something. and i dont believe in that.
  9. midias

    midias Member


    I think a pack of marb reds is near $10 now
  10. Rachgier

    Rachgier Administrator Staff Member

    In the city Marbs and Newports go for closer to $12 a pack.
  11. moona11

    moona11 King of you Monkeys Lifetime Supporter

    its like$3.85 here I think. That's what a can of chew is.
  12. rickm

    rickm Member

    Dang yall smuggle some of them marlboro's this way they are $55 and up a cartoon here
  13. bscar

    bscar Supporting Member

    Mar. reds are like $5 or $6 here in Ohio, i think.
  14. MXGreg

    MXGreg Supporting Member

  15. MaryB

    MaryB Supporting Member

    Like Minnesotans running to WI to buy beer, tax is much lower there. Cases of beer can be $5 cheaper. I brought a pickup box level full back one trip , friends/family all chipped in and said go buy. I got 10 free cases out of the deal for driving.
  16. TRWXXA

    TRWXXA Member


    I got that!
  17. Question for New Yorkers:

    What is the revenue that the state and city governments feels they are entitled to from cigarette sales used for?
  18. Rachgier

    Rachgier Administrator Staff Member

    According to them part of it goes for the free smoking cessation programs the rest goes in to the general fund.
  19. Clearly the programs do not work. Or UPS wouldn't be shipping them around.
  20. bluharley

    bluharley Member

    I quit in '88, and still once every few years I get the urge to light up! That is one powerful addiction. They spent billions perfecting it, and it's paid off.