State University of New York Institute of Technology
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NY state joins NYC in suing FedEx over untaxed cigarettes

This article was written on April 15, 2014 and posted by Reuters.com.  New York State recently imposed an excise tax on cigarettes at a rate of $4.35 per package of twenty cigarettes.  

 In this article, New York state joined New York City in suing FedEx Corporation for allegedly violating state and federal laws by delivering packages of un taxed cigarettes to houses throughou New York.  New York claims there was over 400,000 cartons of cigarettes that were untaxed and being bought by residents.  New York attorney General Eric Scheiderman among the plaintiffs are seeking more than $239 million in damages and penalties.  

FedEx's counter claim is that customer privacy prevented them from checking customer's packages without reason.  They also claim that the shippers responsible for sending out these cigarettes, FedEx has ceased doing business with yet New York State is not suing these shippers.  FedEx asks that New York State to dismiss the case or substantially narrow their complaint.    


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