State vows to appeal cigarette-price ruling

The state Department of Revenue is fighting a recent challenge to the pricing system for cigarettes in Massachusetts and says any stores that ignore the minimum prices will face penalties.

The agency said yesterday that it is appealing a recent ruling by the state Appellate Tax Board that questioned the validity of the minimum-pricing system for cigarettes.

A state law passed in 1945 prohibits retailers from selling cigarettes below cost.

The challenge to the pricing system was brought by a New Bedford convenience store operator who had his license to sell cigarettes suspended after the state learned he was selling below the established minimum.

Expedito Duarte argued that he had to lower prices to compete with other retailers in his area that were selling below the minimum.

The Appellate Tax Board ruled earlier this month in favor of Duarte, saying pricing-enforcement efforts were arbitrary, unconstitutional, and not in compliance with the state law.

Duarte's lawyer told the Globe on July 11, after learning of the decision, that retailers could now charge any price they want.

``The state has no right to set the price of tobacco products," lawyer Joseph Fingliss said.

But Alan LeBovidge, revenue commissioner, said in a statement yesterday that the minimum pricing remains in effect and that he was confident the Appellate Tax Board's decision would be overturned.

``Stores that ignore the minimum price on cigarettes will be subject to penalties," LaBovidge added.

The agency could impose a five-day suspension of the license to sell cigarettes, according to the statement.