Banking & Finance, Law, and Retail

Overseas cigarette shipment turns costly

September 29, 2017
| By AP |
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LANSING — A Michigan man who sent thousands of cigarettes to a friend overseas appears to be on the hook for thousands of dollars in taxes.

Davor Vulic purchased 1,800 cartons of cigarettes from an out-of-state business and shipped them to a friend in Bosnia-Herzegovina, who covered all costs.

The Michigan appeals court said Vulic is liable for state taxes, even if the cartons were never opened in Michigan, and he didn’t make a profit.

In a 2-1 decision, the court said Vulic was “in control” of a tobacco product, which is enough to trigger the tax.

Judge Amy Ronayne Krause disagreed. She said the “unusual facts” of the case probably weren't anticipated by the Legislature.

Krause said Vulic wasn’t a consumer or user of the cigarettes.

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