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Mich. Board Delays Vote on Cigarette Tax Contract

Mich. Board Delays Vote on Cigarette Tax Contract

A Michigan board has delayed voting on a cigarette tax collection contract after objections were raised by two finalists that lost out.

The State Administrative Board was expected to approve the Treasury Department's recommendation for a five-year contract with Xerox on Tuesday. But the item was removed from the agenda.

A state spokesman says he is checking into why no action was taken.

The Associated Press reported this month that Xerox was in line for the $9.6 million contract despite allegations of bias in the selection process and an offer from a competitor to do the work for at least $1.7 million less.

If awarded the contract, Xerox will provide 450 million counterfeit-resistant stamps a year that are applied to cigarette packs to show taxes have been paid.

 

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