Revises the definition of "cigarette" to include roll-your-own tobacco and to exclude cigars. Defines "delivery sale" to mean any sale of cigarettes or smokeless tobacco to a consumer ordered by telephone, the mails, or the Internet or other online service . Redefines "person" to include state, local, and Indian tribal governments. Redefines "use" to include the consumption, storage, handling, or disposal of smokeless tobacco, in addition to cigarettes.
Applies state tobacco tax reporting requirements to:
(1) the sale or advertising for sale of smokeless tobacco products;
(2) persons who ship or transfer cigarettes and smokeless tobacco products; and
(3) the shipment of cigarettes or smokeless tobacco into a locality or Indian country that taxes the sale or use of such products.
Requires sellers of tobacco products to file with the Attorney General reports filed with state tobacco tax administrators.
Imposes additional information reporting requirements on such sellers, including the disclosure of electronic mail addresses, website addresses, and authorized agents for service of process.
Limits the use of information received from sellers of tobacco products solely for tax enforcement purposes.
Expands requirements for delivery sales by requiring each delivery seller, with respect to delivery sales into a specific state and place, to:
(1) comply with specified shipping and record-keeping requirements, all state, local, tribal, and other laws generally applicable to sales of cigarettes or smokeless tobacco as if such delivery sales occurred entirely within the specific state and place (including laws imposing excise taxes and licensing and tax-stamping requirements), and specified tax collection requirements;
(2) include on the bill of lading for the shipping package containing cigarettes or smokeless tobacco a clear and conspicuous statement that federal law requires the payment of all applicable excise and sales taxes and compliance with applicable licensing and tax-stamping obligations;
(3) comply with specified weight and age verification requirements; and
(4) keep records of all delivery sales, organized by state, for four years after the date of the delivery sale, and make such records accessible to state, local, and Indian tribe tax authorities and the Attorney General.
Prohibits the delivery of cigarettes or smokeless tobacco unless the excise tax on such products has been paid and any required stamps or other indicia of payment are properly affixed to the products. Allows an exception for states that require delivery sellers to collect the tax from consumers and remit such tax to state or local tax authorities.
Requires the Attorney General to compile a list of noncompliant delivery sellers of cigarettes and smokeless tobacco and to distribute such list to state attorneys general and tax administrators and common carriers and other couriers, including the United States Postal Service (USPS). Prohibits the delivery of any package to, or on behalf of, a noncompliant delivery seller without determining that such package does not include cigarettes or smokeless tobacco.
Imposes a fine and/or prison term of up to three years for violations of this Act. Increases civil penalties for violations to the greater of $5,000 for a first violation or $10,000 for any other violation, or 2% of the gross sales of cigarettes or smokeless tobacco for the year before the violation.
Grants federal district courts jurisdiction to prevent and restrain violations of this Act and to provide injunctive or equitable relief, including money damages.
Empowers the Attorney General to administer and enforce this Act. Authorizes a state attorney general, a local government, an Indian tribe that levies a tax subject to this Act, or a holder of a permit as a manufacturer or importer of tobacco products or as an export warehouse proprietor (permit holder) to bring an action in U.S. district court to prevent and restrain violations of this Act.
Establishes a PACT Anti-Trafficking Fund into which 50% of criminal and civil penalties collected in enforcing this Act shall be deposited and available to the Attorney General to enforce this Act and other laws relating to contraband tobacco products.
Requires the Attorney General to make information on enforcement actions publicly available (including on the Internet) and to report to Congress on such actions.