Internet Sales -- States getting pissed about lost revenue.

[Roger Miller"]

Well, it is probably only a matter of time.
I have read the new Oregon statute (HB236 designed to tax internet sales -- so far it is pretty much aimed at cigarettes. But if they are successful at getting compliance there they will probably move to cigars.

Here is an article you may find being written by your local paper soon:

"These Internet companies are stealing money from the state, and our job is to stop them. This is a criminal issue for us."

http://www.oregonlive.com/printer/pr...9779359160.xml

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[dagrinch]

Man, the last I need to see is states taxing internet sales. I buy quite a bit of cigars online.


Grinch OUT!!!

[horrorview]

Eeek! I Massachusetts follows suit, I'm screwed

[Darb85]

How is internet sales any different than mail order? there are no taxes on mail order stuff is this included in the bill?

[GOAT LOCKER]

I think it was New York that sent tax bills to people who had purchased cigarettes online. Yep, the laws are already in place, it's just a matter of collecting data on you so they can send you the bill. I think all states that have a sales tax are looking into this, and not just on tobacco. I bought some cigars from overseas once, and was sent a bill for the tariff.

[Redman]

I don't like it at al but I can still get a box of something oh like Brazilla Gol! for like 68.25 and they will cost me about 115 or so locally, I will still buy online any then pay the tax. Sucks but hey what can you do?

[Roger Miller"]

Originally Posted by Redman

I don't like it at al but I can still get a box of something oh like Brazilla Gol! for like 68.25 and they will cost me about 115 or so locally, I will still buy online any then pay the tax.

You live in Tennesse it has a pretty low rate, like most tobacco producing states:
http://www.taxadmin.org/fta/rate/cigarett.html
Ranked 43
So when they catch you for ordering via internet or mail order, and you have not paid the tax, you bill will be a bit lower than others. But there will be a bill.

Originally Posted by Redman

Sucks but hey what can you do?

For tax evasion -- hmmmm, as Al Capone.

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[Jeff]

Just ordered from JR. Didn't have to pay tax because its from out of state. I choose JR over Holts because with Holts being a PA company I would have to pay tax. If states want to levy an internet tax, I think they will shoot themselves in the foot.

[Redman]

Roger i didn't realize how low our tax was here until a group of us went to the national fire acadmey in november and a couple of guy had to buy cigs and dip and a pack of Marb Lights was 5 something and the dip was just as bad.

[BigBubba]

It sucks but I think it's just a matter of time here in Oregon before they get it going. Shoot if I can't order on-line I'll be smoking less that's for sure...it just cost too much for me to buy a box here...for example a box of Hoyo DC's cost $137 here and $67 on-line...

[Roger Miller"]

Originally Posted by Jeff

Just ordered from JR. Didn't have to pay tax because its from out of state. I choose JR over Holts because with Holts being a PA company I would have to pay tax. If states want to levy an internet tax, I think they will shoot themselves in the foot.

Look here is the way it works:

1) your state has a tobacco tax of x%
2) you buy a tobacco product off the inet, mail order, whatever, and you do not pay your state tax
3) your state enforces it's right to collect the tax that is their due (how they do this is what is being discussed right now among the various states)
4) you receive a bill for the taxes owed from your state treasury department.

When you ordered from JR they have no obligation to collect PA state tobacco tax. They DO have an obligation to report your purchase to PA. This obligation has not been enforced. But the numbers are beginning to mount and there are a LOT of dollars on the table here. In the current economic cycle state budgets are hurting and this is essentially free monies that they have here-to-for let slide and overlooked. It is going to change!

Now, in Oregon the statute is really designed to hit cigarette smokers. There is a consumer exemption clause that has been changed from 200 tobacco products (1 carton of cigarettes) to 199. So a box of cigars will fly under that exemption. What i don't know, and can't seem to find is if this is cumulative or by individual purchase. Anyway, cigars represent a small fraction of the lost tax revenue.

It is just a heads up here -- and if you are keen on getting active, you should be on the look-out for consumer groups trying to block these legislative attempts.

as Ms Floydp used to say: Whatever.

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[Jeff]

Thanks for the heads up on this issue. I'm going to do what I can to oppose this legislation, or at least have an exemption for cigars.

[BigBubba]

as of right now there is one site that I know of that won't ship to Oregon because of the tax law...and that's what they say when you try and order from them

[c2000]

If this shit keeps up I'm moving to New Zealand...I mean it....really...


Jerry in Minnesota.

[kansashat]

I think Kansas excise tax is 10%. I could probably swing this, or have my cigars shipped to Mo where I think the tax is something like 3 cents a cigar. If I travel as much in my new job as I think I will, this may not be a problem.

They wouldn't think of making this retro-active would they?