Tobacco Tax Inspections in Wayne County, Across Michigan Net Thousands in Illegal Goods

Michigan State Police tobacco tax inspections uncovered violations across the state, including in Wayne County, and led to the seizure of illegal products worth hundreds of thousands, police said.

The 264 inspections at party stores, gas stations, smoke shops and other businesses took place in January but investigations are still ongoing, Detective First Lt. Derrick Hayes said Wednesday.

"This is a multi-state department initiative...to better combat tobacco tax evasion and fraud," Hayes said.

Tobacco tax evasion has increased in recent years in Michigan, which ranks as having the 11th highest on cigarette tax in the nation relative to bordering states, he said.

Violators of the Tobacco Products Tax Act could face up to five years imprisonment, along with seizure of assets from anyone possessing illegally purchased tobacco as well as fines and penalties.

Bootleg DVDs, K2, fake designs also found

Troopers seized $116,750 in illegal tobacco products and $169,550 in illegal non-tobacco property--totalling $286,300. Missing invoices, untaxed tobacco products, so-called gray market cigarettes--those manufactured for sales outside the United States--and single stick cigarettes were among items found, according to state police.

Despite a ban on K2 spice, the synthetic drug was among illegal products found during the inspections in Metro Detroit. Citing ongoing investigations, state police declined to name specific cities or businesses but noted the inspections spanned across Macomb, Oakland and Wayne counties and beyond.

"In the Metro Detroit area, the MSP has a full-time team of investigators dedicated to conducting tobacco tax inspections," according to a MSP news release. "While conducting inspections, troopers discovered a smoke shop owner operating as a licensee without a proper license, a smoke shop mixing tobacco to create its own blends and a manual cigarette-rolling machine."

Additionally, troopers said they found counterfeit Nike shoes, Ralph Lauren hats, Louis Vuitton shoes, bootleg DVDs and Bridge Card violations during inspections across Michigan.

How you can report tobacco violations

According to Michigan State Police, "Tobacco products tax evasion and fraud is estimated to cost the state millions of dollars in potential revenue."

The MSP, Michigan Department of Treasury and Michigan Attorney General's Office are "working together to bolster criminal investigations and encourage compliance with current laws and regulations."

To report violators of the Tobacco Products Tax Act in your town, call the MSP Tobacco Tax Enforcement Team at 734-525-4246. Callers can choose to remain  anonymous.