New York City's finance department has sent letters to 3,700 smokers asking them to pay over $1.3 million in city taxes from Internet tobacco purchases. A spokeswoman for the department stated that the annual loss to the city from online tobacco sales totals $40 million. Meanwhile, a Marion County grand jury indicted Otamedia S.A., the world's largest Internet retailer of cigarettes, on charges of racketeering, engaging in business as a cigarette distributor without a license, unlawful distribution of cigarettes, computer crime and failure to comply with tobacco delivery sales requirements by selling tobacco products to minors. Otamedia S.A. is the second Internet retailer indicted by the Oregon Tobacco Tax Compliance Task Force.
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