House Majority Leader Gerald McCormick has dropped an effort to change state law so that future legislators would be prohibited from dealing in cigarette tax stamps as Rep. Joe Armstrong is accused of doing.
Armstrong, D-Knoxville, faces trial in August on federal tax evasion charges stemming from what the indictment says was a profit of about $500,000 from cigarette tax stamp transactions in 2007. After reading reports of the indictment, McCormick, R-Chattanooga, said he was surprised that the transaction itself was legal and introduced HB1440 — also sponsored by Senate Majority Leader Mark Norris — to make it illegal.
But McCormick said he had encountered concerns with the legislation on several fronts and ultimately decided to drop the push for passage. Officially, he took it “off notice” last week in the House Agriculture Subcommittee, which has now closed for the 2016 session.