The Arizona Department of Revenue conducts criminal investigations of tobacco luxury tax evasion, improper or fraudulent tax activity and the trafficking of contraband tobacco products.
To report tobacco tax fraud, call the Tobacco Fraud Hotline at: 1-855-CIGTAX1 (1-855-244-8291)
Seizure and Forfeiture of Cigarettes and Tobacco Products
The department is authorized to seize contraband cigarettes and tobacco products, including those tobacco products on which tax has not been paid or accounted for.
Arizona law requires the department to give personal notice of any seizure and forfeiture of cigarettes to all persons known to have a right, title or interest in the property. An online notice will also be posted below if the amount of cigarettes seized is greater than 61 cartons containing 200 cigarettes each.
Current Notice of Seizure of Cigarettes Greater than Sixty-One Cartons:
On September 29, 2021, at approximately 6 a.m., the Tobacco Enforcement team participated in a search warrant served upon the Chimney Daze Smoke Shops located at 4744 W. Glendale in Glendale, 9402 N. Central in Phoenix, and 9420 W. Bell in Sun City. As a result, the following product was seized for unpaid or unaccounted for tax: 14,400 sticks of cigarettes, 1,133 cigars, 65.96 ounces of loose leaf tobacco, 87 cans of smokeless tobacco, and 1,734 wraps.
Personal service of the seizure notice took place on October 27, 2021.
Taxpayers may request an administrative hearing if they have a legal interest in tobacco products seized by the department.
Requests for an administrative hearing must be submitted to the department on Arizona Form 855 within 10 days after the date of personal service, the mailing date of the Notice of Seizure and Forfeiture or the date of online publication in the Notice of Seizure of Cigarettes posted above. If no response is received by the deadline, the seizure becomes final and the tobacco products are forfeited to the state.
For information or assistance with requesting a hearing, please contact the Tobacco Tax Unit at (602) 716-7808.