(Jackson, Miss.) Following a joint investigation by the State Auditor’s Office and the Mississippi Tax Commission, an estimated $20 million of contraband tobacco products were discovered in an undisclosed warehouse in Mississippi. On Tuesday, April 14, agents from the State Auditor’s Office and officials with the Tax Commission uncovered a warehouse containing approximately one million cartons of discount brand cigarettes having an estimated value of $20 million.

The investigation found the products to be missing Mississippi tobacco tax stamps which are required by state law. The cigarettes have been secured pending further investigation and possible forfeiture in accordance with state law.  

“This case continues to be investigated by the State Auditor’s Office and the State Tax Commission,” said State Auditor Stacey Pickering. “We will be coordinating with federal partners at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the US Dept. of Treasury, Alcohol and Tobacco Tax and Trade Bureau (TTB). This case continues to be an active and ongoing investigation and the agencies involved continue to work to determine the appropriate actions to protect Mississippi.”

Preliminary estimates of the warehouse contents are approximately 14,265 cases of cigarettes containing 855,900 cartons. At the current state tax per pack of .18 cents, it is estimated that the tax owed would be $1.539 million. 

“The Tax Commission is taking all steps necessary to make sure that any tax due the state of Mississippi is collected.  We are currently investigating to determine how much tax is due and what actions are required to collect that revenue,” said J.  Ed Morgan, Commissioner of Revenue.

Elected as Mississippi’s State Auditor in 2007, Stacey Pickering (R) has recovered nearly $2.3 million in embezzled, misspent or misappropriated funds.  He is a seventh generation Mississippian from Jones County.  While serving as a State Senator from 2004-2007 he was recognized by the Mississippi Association of Realtors as Legislator of the Year and is credited for co-authorizing legislation allowing Mississippi to end law suit abuse. He was named by the American Legislative Exchange Council to the national policy task forces on Transportation and Homeland Security, and founded and was co-chairman of the  Miss. Legislative Sportsman’s Caucus.  Throughout his political career, Pickering has made tremendous strides in creating more accountability and transparency in government and continues to promote fiscal responsibility and the need for more efficiency and productivity in government.  For more information on Stacey Pickering, visit www.osa.ms.gov/auditors-bio.htm.

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