Mich. OKs Cigarette Tax Deal Despite Complaints

Mich. OKs Cigarette Tax Deal Despite Complaints

A Michigan board has approved a cigarette tax collection contract despite objections being raised by two finalists that lost out.

The State Administrative Board on Tuesday voted 7-0 to OK the state Treasury Department's recommendation for a five-year contract with Xerox.

The Associated Press reported last 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.

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

The board's decision came two weeks after it delayed voting on the contract at the request of Gov. Rick Snyder's administration.


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