Buying Cigarettes Online Can Prove Costly

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If you plan on buying cigarettes via the Internet to avoid paying Michigan's high taxes, that idea could go up in smoke.

The state Treasury Department has sent letters to about 2800 residents ordering them to pay the tax. Each letter asks for an average $3000. Two-point-five million dollars has been collected so far.

Companies are legally required to report to the state who is purchasing what and for how much. As the state receives more reports, hundreds more people could receive letters.

The state is offering up to $5000 to anyone who reports tax-free cigarette purchases.