Warning: NJ residents being charged back-taxes on Internet Purchases.

[Stick]

Originally Posted by themoneycollector

Also, what triggered this? I still don't understand why NJ is seeking tax money from NHC located in OH?

It's called a use tax (link.) New Jersey is collecting taxes from New Jersey residents who bought cigars from Ohio over the internet, presumably.

For more discussion on CS see this thread, especially this post.

In New Jersey:
"The Wholesale Tobacco Products Sales and Use Tax
Act imposes a 30% sales or use tax on all tobacco
products exclusive of cigarettes. This would include
but is not limited to:
• Cigars
• Pipe tobacco
• Snuff
• Chewing tobacco
This 30% tax is imposed upon the wholesale price
upon the sale, use or distribution of a tobacco product
within this State."
...
"Evasion of the WTPS&U Tax Act carries criminal
penalties similar to violations of the Cigarette Tax Act."
...
Undocumented importation from other states is the
most common form of evasion. [emphasis added] OCI along with other
units of the Division of Taxation are enforcing the
provisions of this act both by criminal prosecution
and audits of tobacco product retailers, wholesalers
and suppliers."

For the rest of the document see here (link).

[PerpetualNoob]

One thing they never explain, how the Hell is J. Random Smoker supposed to know the wholesale price of the cigars he buys?

[Stick]

Originally Posted by PerpetualNoob

One thing they never explain, how the Hell is J. Random Smoker supposed to know the wholesale price of the cigars he buys?

Here's the letter NJ sent to a member here which breaks down how they calculated the tax owed (link):

"Dear Taxpayer,

The Federal Government requires any entity or persons shipping cigarettes or tobacco products in interstate commerce to file a monthly report of all shipments to the receiving state's tax administrator. Information received by the State of New Jersey indicates that you are in receipt of untaxed cigars from Blue Havana II Cigars and Gifts.

New Jersey Statutes Annotated, N.J.S.A. 54:40B-1 et. seq. (Tobacco Product Tax) levies a 30% tax on every tobacco product and N.J.S.A 54:32B-1 et. seq. (Sales and Use Tax) levies a tax of 7% on the purchase price including the 30% tax.

The New Jersey Division of Taxation has determined that you are liable for the following tax amount based on the purchase listed below:

Date 4/30/2007
Description: Cigars $90.00
Tobacco product tax @ 30% $27.00
Amount subject to sales tax @ 7% $117.00

Tax Due $27.00
$ 8.19
Total Taxes to be remitted by the above named purchaser: $35.19

Please make your remittance payable to "State of New Jersey" and mail in the envelope provided along with a copy of this letter within (30) days of the date hereof. Failure to respond will result in the assessment of penalties and interest as provided by New Jersey statute.

Very truly yours,
Audit Services Branch
[Name], Technician, MIS
[Phone number]
Cigarette & Tobacco Products Tax"

[kansashat]

Originally Posted by Stick

Here's the letter NJ sent to a member here which breaks down how they calculated the tax owed (link):

"Dear Taxpayer,

The Federal Government requires any entity or persons shipping cigarettes or tobacco products in interstate commerce to file a monthly report of all shipments to the receiving state's tax administrator. Information received by the State of New Jersey indicates that you are in receipt of untaxed cigars from Blue Havana II Cigars and Gifts.

New Jersey Statutes Annotated, N.J.S.A. 54:40B-1 et. seq. (Tobacco Product Tax) levies a 30% tax on every tobacco product and N.J.S.A 54:32B-1 et. seq. (Sales and Use Tax) levies a tax of 7% on the purchase price including the 30% tax.

The New Jersey Division of Taxation has determined that you are liable for the following tax amount based on the purchase listed below:

Date 4/30/2007
Description: Cigars $90.00
Tobacco product tax @ 30% $27.00
Amount subject to sales tax @ 7% $117.00

Tax Due $27.00
$ 8.19
Total Taxes to be remitted by the above named purchaser: $35.19

Please make your remittance payable to "State of New Jersey" and mail in the envelope provided along with a copy of this letter within (30) days of the date hereof. Failure to respond will result in the assessment of penalties and interest as provided by New Jersey statute.

Very truly yours,
Audit Services Branch
[Name], Technician, MIS
[Phone number]
Cigarette & Tobacco Products Tax"

It doesn't seem right that they 1st hit you with a tobacco excise tax, then charge you a sales tax on the excise tax itself. Seems like a form of double dipping to me.

[JCK]

Looks like this isn't just isolated to NHC either. That letter was generated from sales reporting from another vendor.

[wattsd]

Originally Posted by SeanGAR

NEW HAVANA CIGARS in OH...not good

The thread title is pretty clear. New Havana Cigars in OH ... not good. Please explain, oh brilliant one, what that means if other than ... er ... New Havana Cigars in OH ... not good? LOL.

So now its attacks on peoples intelligence. Like I said, anyone influenced that much by the title of a thread is a friggin moron. All you have to do is click it, read about it, then make an educated decision about whether or not you will continue to do business with NHC. Or maybe you are the type of person who just does what everyone tells him without making any effort whatsoever in making your own choices. Why the hell am I taking flac, all I did was express MY opinion just like everyone else in this thread. Maybe you should let the grownups talk for a while before you start jumping in guns blazing trying to pick apart what someone wrote because your life is so meaningless you have nothing better to do. So sorry to make it personal but it seems thats the way things are now done on here.

Thank you everyone who had meaningful feedback, it was interesting.

[wattsd]

oh, and I liked the kitty pictures

[Blueface]

Originally Posted by wattsd

I would think that anyone doing business with NHC on this board would have clicked the thread to see what was going on, then realized that the author did not intend on slamming the company but rather the state....If someone is reading the title and taking another ones word that this company is "not good" than that someone is an idiot and shouldn't be smoking cigars with the rest of us

Originally Posted by wattsd

So now its attacks on peoples intelligence. Like I said, anyone influenced that much by the title of a thread is a friggin moron.

Thanks for the clarification.
I have learned a lot from this thread and your "Dale Carnegie" "How to win friends and influence people" training.
I learned I am an idiot.
I learned I am a moron.
I learned I should not be smoking cigars with the rest of CS members (Ji aka Khubli, that means we cannot meet up on the 28th).
.......and Sean is the one attacking people's intelligence?

Wow.

[JCK]

Originally Posted by Blueface

I learned I should not be smoking cigars with the rest of CS members (Ji, that means we cannot meet up on the 28th).

Yeah we can Carlos.. you forget I'm an idiotic moron! So we're in good shape.

[piperman]

I want the smiley face eating popcorn back.

[NCRadioMan]

Originally Posted by wattsd

So now its attacks on peoples intelligence.

Originally Posted by wattsd

Like I said, anyone influenced that much by the title of a thread is a friggin moron.

[Blueface]

Originally Posted by khubli

Yeah we can Carlos.. you forget I'm an idiotic moron! So we're in good shape.

Glad we are not alone.
See ya on the 28th.
By the way, get ready for some great fish sandwiches, rum runners and Cuban coffee (and smokes of course).

Threadjack off.

[JCK]

Originally Posted by Blueface

Glad we are not alone.
See ya on the 28th.
By the way, get ready for some great fish sandwiches, rum runners and Cuban coffee (and smokes of course).

Threadjack off.

Just so I haven't completely lost my mind, we're talking about Saturday the 27th right?

Getting myself ready!

[Blueface]

Originally Posted by khubli

Just so I haven't completely lost my mind, we're talking about Saturday the 27th right?

Getting myself ready!

LOL

27th/28th?
What is the difference?

My bad. I have to program the 27th in my head instead of the 28th.

[wattsd]

Haha. Look.

The only point I am/was trying to make was that people who read the title of a thread, whether its bad or good, and make a decision based on reading just the title are idiots. If I started a thread and said "Cigars from Havana...not good" and people read that and then swore off those cigars, well draw your own conclusions. It comes down to one person making a comment about a business, and then being "called out" because someone else "THINKS" that person is just doing it to drum up business for themselves. People are always making smart ass comments just to drum up some drama when all they really had to do was ask a simple question. This isn't the first time a post was hijacked because people started pointing fingers and insulting each other. Even moderators are quick to get in on it now. And if this is the type of place where people with a 10,000 posts say little smart ass comments to those of us just starting out on here, than I guess thats the type of place this is.

The title has been changed. It was determined the author did not infact mean what it appeared he wrote. Anyone who didn't read on and figure that out, but rather swore off a cigar store, is still an idiot.

We can start a new thread if people still want to bicker about something.