Tax Law Updates | New Statutes, Regulations, and Rulings
March 10, 2010
SCOTUS: City of NY Can’t Use RICO to Sue Internet Cigarette Sellers for Lost Tax Revenues
Hemi Group, LLC. v. City of New York
No. 08-969, 1/25/2010
Voting 5-3, the Supreme Court of the United States (“SCOTUS,” or “SC”) ruled that the City of New York can not use the federal racketeering law called RICO (Racketeer Influenced and Corrupt Organizations Act) to collect tobacco taxes from Internet cigarette sellers.
In a divided opinion issued in the case of Hemi Group, LLC. v. City of New York (Case No. 08-969), the SC held that because the City cannot show that it lost tax revenue “by reason of” the alleged RICO violation, it cannot state a RICO claim.
RICO provides a private cause of action for “[a]ny person injured…
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