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Report: Cigarette smuggling costs state millions  

Jump to full article: (Long Island, NY) Newsday, 2008-04-29
Author: KRISTEN M. DAUM

Intro:

A congressional report being released today charges that New York State loses millions of dollars a year in unpaid sales taxes on smuggled cigarettes.

Rep. Peter King (R-Seaford) called for an investigation and hearings into the lost revenue - money that King says in past cases has been funneled by smugglers to terror groups overseas.

King, who requested the report by the Republican staff of the House Homeland Security Committee, faults New York State government for not enforcing its own cigarette tax laws, particularly on Indian reservations - reporting that the state lost as much as $576 million in 2004 alone including from purchases on reservations.

"We've been talking to state investigators and law enforcement ... and there's definitely a nexus between the cigarette sales and the terrorist organizations,"

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