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Smoking Taxes

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 f you buy your cigarettes online or over the telephone from Native Americans in western New York, you may soon be seeing a bill from the state of Pennsylvania. This weekend, Julie Liebel of Erie received a notice from the Pennsylvania Department of Revenue. That letter stated that she owes Pennsylvania almost $2,500. She got the bill because she used to buy her cigarettes from the Seneca Nation by telephone and over the internet. The Seneca Nation is required by federal law to turn-in out-of-state purchases to the state's taxing body. What flagged Liebel's orders was the amount she purchased. The state is looking for people who bought more than 100 cartons in the past two years. They suspect those who place large orders are re-selling the smokes for profit. Liebel says she did not re-sell them, but ordered the cartons for her adult children, friends, and neighbors. The state has reportedly sent notices to 4,300 people.

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