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16TOBACCOOUTLETBUSINESSNOVEMBERDECEMBER2011NEWSTRENDSNOVEMBERDECEMBER2011CigSmugglingRampantinNewJerseyFortypercentofcigarettessmokedinNewJerseyarereportedlyillicit.CigarettessmuggledillegallyintoNewJerseycouldbecostingthestatemorethan500millioninuncollectedtaxrev-enueeachyearaccordingtoTheStar-Ledgerwhichciteda2008StateTrea-suryDepartmentreport.NewJerseyx19sstateexcisetaxrateat2.70ismorethan1morethantheratesofneighbor-ingDelaware1.60andPennsylvania1.60.Thereportencouragedcontrolledbuysvideosurveillanceandtheuseofpaidinformantstocombatthesmug-glingaswellasnewleadershipatthestateOfceofCriminalInvestigation.Suchactionshaveledtoanincreaseinthenumberofsmugglerscaughtac-cordingtoTheStar-Ledgerwhichsayssuchincidentsrosefrom45in2009to192lastyear.Thestateisalsoconsider-ingtheuseofhigh-techtaxstampsen-cryptedwithcodesthatincludethehis-toryofeachpackofcigarettesaccordingtothearticleasmuchsmugglingactivityusescheapcounterfeittaxstamps.MLBConsidersBanMajorLeagueBaseballisweighingabanonchewingtobacco.IfCongresshasitswaychewingtobac-cox14whichhasbeensynonymouswithprofessionalbaseballformorethan150yearsx14willbeoutlawedfromthegame.AcampaignbackedbymembersofCongressandCommissionerBudSeligisseekingtobanx1cdipx1dbecauseofthepopularperceptionthatseeingplay-erschewingtobaccoandspittingsetsabadexampleforyoungerfans.MajorLeagueBaseballx19scurrentcollectivebargainingagreementwiththeplayersx19unionexpiresinDecemberandCom-missionerSelighasstatedthathewillseektoincludeitinanynewcontract.Playersx19unionheadMichaelWeinerisonrecordsayingthatplayerswillmakeax1csincereeffortx1dtoaddressit.AttheurgingofWisconsinGov.ScottWalkerthestatex19sDepartmentofRev-enuesentoutaletterwarningownersofroll-your-owntobaccomachinesthattheyarerequiredtocomplywithstatelawsandmuststopavoidingpayingcigarettetaxes.Accordingtostatelawifaretailerx14oroneofthatretailerx19scus-tomersx14operatesaroll-your-ownma-chineontheretailerx19spremisestomakecigarettestheretailerisdeemedtobeacigarettemanufactureranddistributorinwhichcasetheretailermustobtainmanufactureranddistributorpermitsfromtheDepartmentofRevenue.SuchretailersarerequiredtohavecerticationfromthestateDepartmentofJusticethatplacesthemonthestatex19slistofapprovedcigaretteretail-ersandtheymustalsoreceivecerti-cationfromthestateDepartmentofSafetyandProfessionalServicesthatconrmsthattheRYOcigarettesmeetresafetyperformancestandards.WisconsinTargetsRYOMachinesState-issuedletterseekstaxrevenuesfromownersofin-storerollingmachines.CaliforniaSalestoMinorsDownTobaccosalestominorsisatall-timelow.AccordingtohealthofcialsinCali-forniasalesoftobaccoproductstominorshavereachedanall-timelow.The2011YouthTobaccoPurchaseSurveyshowsthatonly5.6percentofretailoutletssoldtobaccotominorsthelowestrateinthe16-yearhistoryofthesurvey.InreportingthestorySanJosex19sMercuryNewssaidthattobaccoshopsconveniencestoresdrugstoresliquorstoresgasstationsandsupermarketshaveexperiencedthesharpestdeclineswithnon-tradi-tionaltobaccoretailersresponsibleforamuchhighernumberofillegalsalestominors.