Tag Archives: cigarette

Up in Smoke: NY Sues UPS Over Cigarette Tax

When there’s smoke, there’s fire.

The latest courtroom battle about cigarettes has nothing to do with damaged lungs, but rather a hole in the wallet. It recently came to light that shipping giant UPS failed to properly adhere to tax laws in New York City and State. This has resulted in 78,500 shipments of untaxed cigarettes being transported in and out of New York for about 4 years. UPS has denied these allegations, citing their past experience in the shipping industry and adherence to any and all state laws. The lawsuit was filed in New York by Attorney General Eric Schneiderman and Counsel Zachary Carter and is seeking about $180M in damages. Outright accusations of lying and cheating have been thrown out by both sides, understandable considering the hefty price tag attached. Read more