Buying cigarettes in other states (DE to NJ) -- how much is legal?

[Br_er_Lapin]

I live in New Jersey and am planning a trip to Maryland this weekend which will briefly take me through Delaware.
Cigarettes are much less expensive there, so I’m planning on picking up a carton for myself and possibly one for a friend.

However, I don’t want to get pulled over or something and have them confiscated/get fined because it turns out I’m only allowed to have X amount of packs, so I’m trying to figure out what amount I can legally bring back into NJ for personal use. I’m having no luck.

Anybody have more finely-tuned Google Fu?

[Gfactor]

Try to keep it under 60,000 and you should be ok.

http://www.cato.org/pubs/pas/pa468.pdf (pdf)

http://www.gao.gov/new.items/d02743.pdf (pdf)

http://www.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00002342----000-.html

@18 U.S.C. § 2342

§ 2342. Unlawful acts
Release date: 2005-08-03

(a) It shall be unlawful for any person knowingly to ship, transport, receive, possess, sell, distribute, or purchase contraband cigarettes.
(b) It shall be unlawful for any person knowingly to make any false statement or representation with respect to the information required by this chapter to be kept in the records of any person who ships, sells, or distributes any quantity of cigarettes in excess of 60,000 in a single transaction.

http://www.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00002341----000-.html

@18 U.S.C. § 2341

(2) the term “contraband cigarettes” means a quantity in excess of 60,000 cigarettes, which bear no evidence of the payment of applicable State cigarette taxes in the State where such cigarettes are found, if such State requires a stamp, impression, or other indication to be placed on packages or other containers of cigarettes to evidence payment of cigarette taxes, and which are in the possession of any person other than—
(A) a person holding a permit issued pursuant to chapter 52 of the Internal Revenue Code of 1986 as a manufacturer of tobacco products or as an export warehouse proprietor, or a person operating a customs bonded warehouse pursuant to section 311 or 555 of the Tariff Act of 1930 (19 U.S.C. 1311 or 1555) or an agent of such person;
(B) a common or contract carrier transporting the cigarettes involved under a proper bill of lading or freight bill which states the quantity, source, and destination of such cigarettes;
© a person—
(i) who is licensed or otherwise authorized by the State where the cigarettes are found to account for and pay cigarette taxes imposed by such State; and
(ii) who has complied with the accounting and payment requirements relating to such license or authorization with respect to the cigarettes involved; or
(D) an officer, employee, or other agent of the United States or a State, or any department, agency, or instrumentality of the United States or a State (including any political subdivision of a State) having possession of such cigarettes in connection with the performance of official duties;
(3) the term “common or contract carrier” means a carrier holding a certificate of convenience and necessity, a permit for contract carrier by motor vehicle, or other valid operating authority under subtitle IV of title 49, or under equivalent operating authority from a regulatory agency of the United States or of any State;
(4) the term “State” means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or the Virgin Islands; and
(5) the term “Attorney General” means the Attorney General of the United States

[Shagnasty]

@Gfactor

Try to keep it under 60,000 and you should be ok.

That’s too bad. A close read does sound like you can make multiple trips though.

[Gfactor]

Wait. I knew this seemed too easy.

Here is a guide to New Jersey’s cigarette tax laws:

http://www.state.nj.us/treasury/taxation/pdf/pubs/misc/ocicigs.pdf (pdf)

[Gfactor]

Unlawful Possession
• Possession of untaxed cigarettes (Disorderly
Persons Offense).
• Possession of untaxed cigarettes, 100 cartons or
more (Indictable Offense, $1,000.00 fine and/or
up to 1 year in jail).

http://www.state.nj.us/treasury/taxation/pdf/pubs/misc/ocicigs.pdf (pdf)

So it looks like the answer is that there is no “personal use” exception.

And the penalty for a Disorderly Persons Offense is apparently pretty stiff, too:

• Disorderly Persons Offense $1,000.00 fine and/
or up to 6 months in jail.
• Second or subsequent offenders convicted of
any violation of any tax offense may be fined
up to twice the fines authorized by the
Criminal Code. NJSA 2C:43-3.g.

Id.

b.  An offense is a disorderly persons offense if it is so designated in this code or in a statute other than this code.  An offense is a petty disorderly persons offense if it is so designated in this code or in a statute other than this code.  Disorderly persons offenses and petty disorderly persons  offenses are petty offenses and are not crimes within the meaning of the  Constitution of this State.  There shall be no right to indictment by a grand  jury nor any right to trial by jury on such offenses. Conviction of such  offenses shall not give rise to any disability or legal disadvantage based on  conviction of a crime.

http://lis.njleg.state.nj.us/cgi-bin/om_isapi.dll?clientID=220005994&Depth=2&depth=2&expandheadings=on&headingswithhits=on&hitsperheading=on&infobase=statutes.nfo&record={142F}&softpage=Document42

The New Jersey Code site is fighting me and winning, so I haven’t been able to verify much of what the pdf says, or determine whether there is any personal use language in there. Also, the New Jersey Administrative Code does not appear to be available online for free. Anyway, that seems to be what the New Jersey tax people say.

[Gfactor]

The statutes don’t seem to match the claims made by the tax folks, but maybe there are recent amendments. Anyway, here is what I found:

54:40A-25 Possessing cigarettes not bearing required revenue stamps.

602. Possessing cigarettes not bearing required revenue stamps.

Any wholesale dealer or retail dealer who violates the provisions of section four hundred six of this act, and any consumer who fails to report and remit the tax due as provided by section two hundred five of this act, shall be liable to a penalty of not more than twenty-five dollars ($25) for each individual carton of unstamped or illegally stamped cigarettes in the dealer’s possession, which penalty shall be sued for and recovered in the same manner as provided for the penalties imposed by section six hundred one of this act.

(Emphasis added.)

http://lis.njleg.state.nj.us/cgi-bin/om_isapi.dll?clientID=220006176&Depth=2&depth=2&expandheadings=on&headingswithhits=on&hitsperheading=on&infobase=statutes.nfo&record={168C4}&softpage=Document42

54:40A-28.1 Possession of cigarettes without proper stamp, violations, fine.

2.Any person, other than a licensee permitted under this act to possess any unstamped cigarettes, who possesses 2,000 but fewer than 20,000 cigarettes without the stamp or stamps required by this act being affixed thereto or stamped in violation of subsection b. of section 405 shall be a disorderly person, and upon conviction thereof, shall be fined not more than $500 or imprisoned for not more than six months, or both, at the discretion of the court; and any such person who possesses 20,000 or more cigarettes without the stamp or stamps required by this act being affixed thereto or stamped in violation of subsection b. of section 405 of P.L.1948, c.65 (C.54:40A-15) shall be guilty of a misdemeanor, and upon conviction thereof, shall be fined not more than $1,000 or imprisoned for not more than one year, or both, at the discretion of the court.

L.1977,c.188,s.2; amended 1999, c.328, s.5.

http://lis.njleg.state.nj.us/cgi-bin/om_isapi.dll?clientID=220006176&Depth=2&depth=2&expandheadings=on&headingswithhits=on&hitsperheading=on&infobase=statutes.nfo&record={168D0}&softpage=Document42

[Gfactor]

And you don’t have a federal preemption argument:

@18 U.S.C. § 2345

§ 2345. Effect on State law
Release date: 2005-08-03

(a) Nothing in this chapter shall be construed to affect the concurrent jurisdiction of a State to enact and enforce cigarette tax laws, to provide for the confiscation of cigarettes and other property seized for violation of such laws, and to provide for penalties for the violation of such laws.
(b) Nothing in this chapter shall be construed to inhibit or otherwise affect any coordinated law enforcement effort by a number of States, through interstate compact or otherwise, to provide for the administration of State cigarette tax laws, to provide for the confiscation of cigarettes and other property seized in violation of such laws, and to establish cooperative programs for the administration of such laws.

http://www.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00002345----000-.html

[Br_er_Lapin]

Well, since technically the cigarettes being purchased WILL be stamped (though with a different state’s stamp) and the federal taxes will be paid, I’m not sure how much of that applies to me. I do appreciate the search, however, you certainly found more than I did.

I’m pretty sure there’s some sort of specific amount I’m allowed to buy without being accused of trying to resell for a profit, but since the information isn’t readily available on the internet (phones? what are they?), I suppose I’ll take my chances and assume I’m allowed to buy two cartons.

[Gfactor]

@Bre'r Lappin

Well, since technically the cigarettes being purchased WILL be stamped (though with a different state’s stamp) and the federal taxes will be paid, I’m not sure how much of that applies to me. I do appreciate the search, however, you certainly found more than I did.

I’m pretty sure there’s some sort of specific amount I’m allowed to buy without being accused of trying to resell for a profit, but since the information isn’t readily available on the internet (phones? what are they?), I suppose I’ll take my chances and assume I’m allowed to buy two cartons.

All of the New Jersey laws require a New Jersey stamp, according to the pdf and the New Jersey statutes I read. But you oughta call these guys.

IF YOU SUSPECT VIOLATIONS OF THE CIGARETTE TAX
LAWS, NEED ASSISTANCE, OR HAVE QUESTIONS
ABOUT THE CIGARETTE & TOBACCO PRODUCTS LAWS
CALL:
THE OFFICE OF CRIMINAL INVESTIGATION
609-633-7570 — Monday–Friday
609-984-1225 — After hours and weekends

I’d be interested to hear what they had to say.

[Gfactor]

Ok. I was curious, and had a few minutes. I called both numbers from above, but got no answer. So I called the State of New Jersey Division of Taxation (609 292 6400), was on hold for a few minutes, and then the phone system booted me because they were too busy.