JACKSON- 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.