From the Legal Hotline

By Teri Henning, General Counsel; Melissa Melewsky, Media Law Counsel
Pennsylvania Newspaper Association

Q: Should we accept an advertisement from an Indian Reservation for “tax-free, online cigarette orders”?

A: PNA advises against accepting these ads. The cigarettes may be “tax-free” when bought and consumed on the Indian reservation; however, once a resident brings them into Pennsylvania, the Cigarette and Use taxes must be paid to the Department of Revenue. The Pennsylvania Department of Revenue requires “any resident who purchases cigarettes either over the Internet or from vendors located outside of Pennsylvania, and brings or causes cigarettes to be brought into Pennsylvania, must pay to the Department of Revenue both the Cigarette Tax and Use Tax.” The law also imposes criminal fines and penalties for possession of more than one carton of unstamped cigarettes. You can review the Department of Revenue’s opinion: [CLICK HERE]

An ad that claims to sell “tax-free” cigarettes is false, confusing and misleading to readers in violation of the Unfair Trade Practices and Consumer Protection Law. Additionally, these ads could result in criminal fines or penalties for readers. As such, PNA advises against accepting these ads.

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PNA Legal Hotline: (717) 703-3080