Possession of more than 25 cartons of cigarettes with intent to distribute them would become illegal in Virginia under legislation moving through the General Assembly.
The legislation, backed by Henrico County-based tobacco giant Altria Group Inc., is aimed at cracking down on cigarette smuggling from Virginia to higher-tax states.
"What you have here is a situation where you have really bad guys selling cigarettes to finance gangs and to finance terrorist organizations," said Del. David B. Albo, R-Fairfax, who introduced the legislation in the House. Federal law already prohibits transporting more than 50 cartons of cigarettes across state lines. Supporters of the legislation say it would help Virginia law enforcement agencies arrest cigarette smugglers before they cross state lines.
A House Courts of Justice subcommittee advanced the legislation to the full committee on a 6-2 vote Wednesday, but only after the language of the bill was changed to add "with intent to distribute."
That language was added to avoid charging anyone possessing more than 25 cartons for personal use. For a pack-a-day smoker, that would be enough cigarettes for 250 days.
The House legislation would make possession with intent to distribute a misdemeanor crime and impose civil penalties of up to $5,000 for a first offense.
The Senate Courts of Justice Committee passed on Monday a similar bill, introduced by Sen. Ryan T. McDougle, R-Hanover, and referred it to the Finance Committee.
Virginia has the nation's second-lowest cigarette tax at 30 cents per pack, making the state a target for smugglers who buy cigarettes here, then re-sell them for a profit in higher-tax regions such as New York City, where the combined local and state tax is $5.85 per pack.
The Bureau of Alcohol, Tobacco, Firearms and Explosives estimated in 2010 that a single carton of cigarettes, or 10 packs, purchased in Virginia and illicitly sold in New York would yield about $39.50 in profits. A single case of 60 cartons would yield $2,397 in profits, it said.
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