New York AG Announces $50M Payment from Cigarette Companies for Alleged Sales Without Paying State Tax
New York Attorney General Letitia James today announced a $50 million agreement with two companies that allegedly sold cigarettes without paying the required state excise taxes. Today’s agreement resolves allegations that Grand River Enterprises Six Nations, Ltd. (Grand River) based in Canada, and its wholesaler, Native Wholesale Supply Company, Inc. (Native Wholesale), located in Western New York, violated state and federal laws by shipping, selling, and distributing cigarettes in New York without paying state taxes. The two companies brought millions of cartons of unstamped cigarettes into New York from Canada. In addition to paying $50 million, the agreement also permanently prevents the companies from selling unstamped cigarettes in New York.
“Hardworking New Yorkers pay taxes and so should multi-million-dollar companies,” said Attorney General James. “Regulating and taxing cigarettes is a critical tool to protect public health from the deadly dangers of tobacco. Today’s agreement enforces New York’s laws and will stop the overflow of unstamped cigarettes into New York. I will continue to enforce the law against companies and individuals who flout New York state laws and put our residents in jeopardy.”
New York imposes state taxes on cigarettes to curtail the usage of tobacco products that are known to have serious and sometimes deadly health effects and significant related economic costs.
