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State and federal legislation and enforcement will probably be needed to ensure that appropriate excise taxes are paid on cigarettes, that gray market cigarettes are not sold online, and that youth cheap cigarettes online access to tobacco products is restricted,'' he added.
In a commentary on the research, Canadian scientists said international tobacco control agreements and cheap cigarettes online national and state regulation may be needed to meet the threat the Internet posed for tobacco control. If deliberate and concerted action is not taken, tobacco commerce on the Internet could prove to be a significant threat to comprehensive tobacco control,'' said Joanna Cohen of the University of Toronto. ludicrously low cigarette tax is not only hurting Kentuckians by keeping it alluringly cheap to smoke and depriving the state of badly needed revenue. It is also cheap cigarettes online hurting other, more responsible states by turning Kentucky into a haven for Internet cigarette sales. As taxes and prices have gone up almost everywhere else, Internet operations have grown here as ways for buyers to avoid higher taxes in their home states and, worse, for youths to avoid their states' laws against sales to minors.

For now, of course, Kentucky is getting a little extra income from these Internet sales, since the suppliers do pay the state's measly tax of 3 cents per pack.
But that return is coming at a high cost. For one thing, it places Kentucky on the wrong side of the national debate over Internet taxation. States generally agree that Internet transactions shouldn't escape normal state taxes, since that puts local, non-Internet businesses at an unfair disadvantage and since it also allows Internet customers to avoid paying for the government services they enjoy.
For another, the rise of cheap cigarettes online Internet cigarette sellers means Kentucky is now home to businesses that are legally suspect; they seem to be ignoring the minimal age-verification and reporting requirements already on the books.

It's not illegal to buy or sell cigarettes over the Internet, but sellers and buyers appear to be obliged to report their purchases and to pay any state taxes owed under the 1949 Jenkins Act. It expressly requires dealers to report out-of-state sales to the buyers' state tobacco tax administrators.