State officials want audit of cigarette settlement money

Tue, Jan 10, 2012 (4:45 p.m.)

CARSON CITY -- An effort to collect potentially millions of dollars more from the sale of cigarettes in the state has been approved by the Board of Examiners.

The board recommended hiring auditors to make sure the state is collecting all the money it's due. The $260,164 to pay for the personnel will come from a reserve account.

In November 1998, the four largest tobacco companies reached agreement with 46 states, including Nevada, to settle lawsuits over the cost of treating tobacco-related diseases. It has included $360 million for Nevada.

Other tobacco companies were not part of the settlement. State taxation officials say these firms were required to pay Nevada 2 cents for each cigarette sold.

The state has been unable to verify that the companies are paying the correct amount to the state.

William Chisel, director of the state Department of Taxation, told the board that the state must track the money paid by these firms.

"We're responsible to make sure that they (the small firms) pay into an escrow account of 2 cents per cigarette," Chisel said.

Officials couldn't immediately say how much is in the escrow account.

Examiner Board members Gov. Brian Sandoval and Secretary of State Ross Miller voted to support the appropriation. Attorney General Catherine Cortez Mastos did not attend the meeting.

The recommendation goes to the Legislative Interim Finance Committee for final action at its meeting Feb. 9.

The board also denied the claim of Myles Machado, who says he was attacked on the Las Vegas Strip in June. The police report was not filed with the state's Victims of Crime Program within the required five days.

The governor said Machado appeared to have suffered a severe head injury and had a pre-existing "mental condition." But evidence showed he was in the hospital for only four hours, received some stitches and was released. No evidence showed Machado was prevented from filing the claim by the deadline for the state to pay his medical bills and his lost wages.

The board voted to allow Machado to pursue his claim. A hearing officer had recommended denial.

Back to top

SHARE

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy