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Press Release
October 18, 2005

Cigarette Wholesaler Faces Suspension of Licenses and Permits

 An Oklahoma cigarette wholesaler received a temporary suspension of their cigarette and tobacco products wholesale license on Monday afternoon. The suspension follows an investigation by tax auditors for the Commission.

“We’ve given fair warning to wholesalers and retailers that it is our job to administer the tax law fairly and equitably,” said Paula Ross, agency spokesperson.

Since March the agency has conducted audits of tobacco wholesalers; performed sweeps across the state confiscating improperly marked cigarette and tobacco products; land searches; sent letters to taxpayers who purchase cigarettes online and have not remitted taxes that are due on the purchase; sent out teams of Field Agents statewide to assist retailers with any questions they may have on tax laws.

Cigarette wholesaler, Sunflower Supply, filed for and received a temporary injunction late Monday afternoon in Oklahoma County District Court. A Tax Commission hearing will be held October 25 to determine if the Commission’s temporary suspension will continue. Ultimately the Commission will determine if the wholesaler will have their license revoked.

“The Commission did not take this action lightly. We understand this can cost the wholesaler their livelihood; however, we also have to take into consideration the fact that wholesalers must follow the law. It is our hope that we will not have to take actions like this again in the future,” Ross stated.

The Oklahoma Tax Commission will continue to vigorously enforce the tax law in all instances. Since beginning the sweeps earlier this year agency field agents have made more than 4,500 visits to licensed cigarette and tobacco retailers. Over 280 retailers have had some form of product confiscated, averaging approximately $500 per retailer. The agency has also mailed out more than 1,000 letters to taxpayers who owe taxes on online cigarette or tobacco purchases and conducted numerous audits on wholesalers and retailers.