Dec. 12, 2013
Dietary supplement maker Star Scientific Inc. has agreed to pay $975,000 to settle a dispute with the Virginia Department of Taxation.
The settlement covers the more than $707,000 bill plus interest and penalties.
The Henrico-based company sued the tax department in 2011, challenging the assessment of retail sales and use tax on its purchase of tobacco curing barns.
Star Scientific previously marketed tobacco products but left that business last year to focus on dietary supplements, including its Antabloc anti-inflammatory support product.
State and federal authorities are investigating its CEO's relationship with Governor Bob McDonnell and Attorney General Ken Cuccinelli. Both received thousands of dollars in gifts from Star Scientific and its CEO, Jonnie Williams.