Smokers throughout Wisconsin may look
to get their fix from other states because of the $1 tax increase per
pack of cigarettes passed in the 2007-09 state budget.

The new cigarette tax was introduced by
Democratic Gov. Jim Doyle as a means to reduce cigarette smoking in
the state of Wisconsin.

Former Senate Majority Leader Judy
Robson, D-Beloit, was an advocate of the tax introduced by Doyle and
helped ensure its inclusion in the 2007-09 budget.

“It’s good public policy and
improves public health, and hopefully, it will help more people crack
the habit,” said Josh Wescott, spokesperson for Robson, who added
the money from the tax will go toward funding anti-smoking programs
endorsed by Robson.

“It is improving public health and
investing in public health,” Wescott said.

However, the $1.77 total tax per pack
of cigarettes also applies to online purchases, according to the
Wisconsin Department of Revenue.

The DOR has acknowledged many consumers
may look for out-of-state vendors to buy their cigarettes.

Meredith Helgerson, spokesperson for
the DOR, said people are free to purchase cigarettes over the
Internet, but said consumers cannot legally avoid the new tax.

The DOR’s concern is not that
purchasers will seek out-of-state vendors, but that they will attempt
to avoid the cigarette tax, as well as state sales tax, by making the
online purchase from another state.

As is the case with any online
purchase, consumers are technically required to pay the appropriate
state sales tax on all items purchased, although Helgerson said “many
of these online vendors do not charge the tax, but [consumers] are
still required to pay the tax.”

While the tax is required by law,
Helgerson said the state of Wisconsin does not have jurisdiction to
force Internet cigarette vendors to charge consumers the tax, putting
the responsibility of making sure the tax is paid into the hands of
consumers.

In cases where vendors do not charge
the appropriate state sales tax, the individual purchasers are
obliged to report all of their online cigarette purchases on income
tax forms along with everything else bought online.

A federal law requires vendors to
report sales to the governments of each state to which their product
is sold. Helgerson said it is advised that individuals who purchase
cigarettes online report these purchases on income tax forms in order
to avoid an audit for tax evasion.

The tax goes into effect Jan. 1 for all
cigarette purchases in Wisconsin, including Internet purchases from
out-of-state vendors.