High Court Nixes NYC Suit Over Online Cigarette Taxes

Law360, New York (January 25, 2010, 4:06 PM EST) -- The U.S. Supreme Court has ruled that New York City can't use a federal racketeering law to go after online tobacco retailers as part of its efforts to recover unpaid city taxes on cigarettes.

In a 5-3 decision written by Chief Justice John Roberts and handed down Monday, the high court reversed an appeals court decision, finding that New York City's theory of how it lost out on collecting taxes from New Yorkers who bought cigarettes online from New Mexico-based Hemi Group LLC was far too...
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