Article: State goes after smokers who buy cigs on Web.

Byline: Richard Roesler

Aug. 1--OLYMPIA -- Grady Russell thought he'd found a great bargain.

A smoker for more than six decades, the retired Ephrata, Wash., carpenter found an Internet company two years ago that sold cigarettes -- taxed at the ultra-low Kentucky rate -- for slightly more than $1 a pack. Delighted with the savings, Russell started placing orders, 10 cartons at a time.

Then, last year, he got a letter in the mail. The state Department of Revenue told him he owed Washington taxes on all those cigarettes.

"I hate it," Russell said. But he paid up, dutifully calculating the number of shipments and sending in about $160 in ...

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