To: ~digs who wrote (676 ) 9/11/2003 9:33:52 PM From: ~digs Respond to of 6763 Calif. legislature passes Internet cigarette bill Thursday September 11, 4:13 PM EDT SACRAMENTO, Calif., Sept 11 (Reuters) - California's legislature passed a bill on Thursday banning Internet cigarette sales unless retailers provide the buyer's name and address so the state can collect tobacco and sales taxes. California law now requires retailers to either collect the state taxes or print a notice on the shipment informing buyers they are responsible for the taxes -- a loophole the bill's sponsor says cost the nation's most populous state $54 million a year in lost tobacco levies. "Internet and mail order cigarette retailers are making a fortune by thumbing their noses at the federal law and misleading California buyers into thinking they can duck nearly $9 in state tobacco taxes on every carton of cigarettes they order," said the bill's sponsor, Democratic Sen. Debra Bowen. The legislation, which the Senate approved on a bipartisan 24-11 vote, now moves to Democratic Gov. Gray Davis, who has not yet indicated whether he would sign the bill. The measure was modeled on a 2000 New York law that, with a limited exception, banned mail-order tobacco sales. California, one of the world's largest economies, could use new revenue. Lawmakers recently closed a $38 billion budget gap in a state forecast to have more big deficits in coming years as a weak economy crimps revenues. The Senate has not yet taken action on another Internet tax bill that would require the state to join a group of 38 states and the District of Columbia seeking to tax remote sellers, including those that operate online and via mail-order. Members of that group, known as the Streamlined Sales Tax Project, were key players in a February deal in which eight major online retailers agreed to begin collecting taxes on behalf of about three dozen states. As part of that deal, the vendors were granted amnesty for any prior uncollected taxes. finance.myway.com