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The Jenkins Act requires any person who sells and ships cigarettes across a state line to a buyer, other than a licensed distributor, to report the sale to the buyer’s state tobacco tax administrator. The act establishes misdemeanor penalties for violation. Compliance with this federal law by cigarette sellers enables states to collect cigarette excise taxes from consumers...
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Compliance with this federal law by cigarette sellers enables states to collect cigarette excise taxes from consumers. However, some state and federal officials are concerned that as internet cigarette sales continue to grow, particularly as states’ cigarette taxes increase, so will the amount of lost state tax revenue due to noncompliance with the Jenkins Act (Wikipedia, 6)...
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