Bootleg tobacco bill fails

By Joe Kafka, The Associated Press | Saturday, March 03, 2007

Previous Page

Share

• del.icio.us
• Digg
• NewsVine
• Fark

Print

Email

PIERRE -- An effort to strengthen the law against cigarette bootleggers has been rejected by South Dakota lawmakers.

The legislation, which was offered by the state Revenue Department, had been passed by the state House, but the Senate killed it 23-12.

Administration officials argued that they need SB41 to crack down on people who avoid the higher tax on cigarettes by bringing in them into South Dakota from other states.

The tax went up by $1 in January and is $1.53 a pack. Voters approved the higher tax in November after a petition campaign put the issue on the ballot.

The legislation would have imposed tougher financial penalties on people who have cigarettes that don't carry the South Dakota tax stamp.

It also would have created criminal penalties for cigarette bootleggers.

People caught with 30 to 70 cartons of untaxed cigarettes would have been convicted of a misdemeanor with a maximum penalty of one year in jail and a $2,000 fine. Those caught with more than 70 cartons could have been convicted of a felony with a maximum penalty of 10 years in prison and a $20,000 fine.

The bill, as initially introduced in the Senate, made no mention of criminal penalties. It was changed in the House, and the Senate refused to go along.

Sen. Jim Hundstad, D-Bath, said many people in his area live so close to North Dakota that they buy groceries there. Police should not stop people to check their grocery bags for cigarettes from North Dakota, he said.

Sen. Gene Abdallah, R-Sioux Falls, said the bill would impose prison sentences almost as severe as those given armed robbers. "Are we crazy?" Abdallah asked.

"Ladies and gentlemen, we're out of control," Abdallah told his colleagues.

Sen. Kenneth McNenny, R-Sturgis, said the felony would apply only to people caught with at least 70 cartons of bootlegged cigarettes. No one would buy 70 cartons for personal use, he said.

"If we're not going to collect the tax on cigarettes, we just as well repeal the whole thing," McNenny said.

Sen. Tom Hansen, R-Huron, said a felony is proper because the tax on 70 cartons of cigarettes would exceed $1,000.

The Revenue department is going overboard in its desire to collect the cigarette tax, countered Sen. Gil Koetzle, D-Sioux Falls.

"Trust me, we're going to have cigarette police," he warned.