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Post by haebar on Aug 4, 2017 6:42:22 GMT -5
I have seen two reports of this and was wondering if any of you have heard of instances of this in your state. Illinois is one state where they have started billing online tobacco buyers taxes for online sales from other states. Don't know if it is just for sales tax or if there are additional tobacco taxes involved. One guy got a $90 bill and another had several hundred dollars to pay. There was another state that was doing this as well but I can't remember which one - I saw these reports on Facebook and it is hard to find something that you read just a couple of days ago.
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Post by papipeguy on Aug 4, 2017 7:41:58 GMT -5
I had read someting about this some time ago. The only way I can see this happeneing is if the vendor has an agreement with the state to report sales, by individual, to the buyers home state. There is a push to get big online sellers like Amazon to collect state sales taxes for the state a product is shiped to.
Most state income tax returns have a line on them to report online ourchases but count on the individual to report such purchases themselves.
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Post by trailboss on Aug 4, 2017 11:39:18 GMT -5
It isn't unusual when logging on to search for tobacco with an Arizona IP adress to see at the top of the list a threatening link from the Arizona AG's office that it is illegal to buy tobacco online, and doing so can and will result in fines and taxes from the state. The first time I noticed it I kind of freaked out, but when I delved into the details, it is aimed at cigarettes only. www.azcentral.com/story/money/business/consumer/call-12-for-action/2014/09/28/arizona-smokers-online-taxes/16373237/It seems that the authorities can easily find out who bought cigarettes from online retailers and really ruin peoples day....For now, Pipe tobacco and cigars are exempt, I cannot remember if there is the same rule for smokeless tobacco's.Knowing the nature of greasy politicians, and political types that want to rule our lives and always wanting to "look out for the children", I figure it is just a matter of time before they look for new revenue streams to pay for exploding obligations for such things as pension plans, that they grossly mismanaged. Therefore, I have been going hell bent for leather the last few years packing the cellar. |
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Post by papipeguy on Aug 4, 2017 12:06:04 GMT -5
The expense and time for most online retailers would be too much for them. So they will have two choices: to stop online sales, doubt that will happen, or ignore the states, status quo.
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kraken
Junior Member
Posts: 127 
First Name: Laura
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Post by kraken on Aug 4, 2017 12:29:13 GMT -5
Living in Minnesota I started getting charged sales tax for items I purchased on Amazon about a year or so ago. But nobody went back to look at and charge me taxes for purchases prior to that. It's interesting that they would choose to target just tobacco sales. If they feel the need to start applying state taxes to online tobacco sales I'll be disappointed but I also get that this is how things work. But to charge people who most likely don't understand the law back taxes seems a little cruel.
As an interesting but connected side note, I've purchased a lot of clothes online from the direct sales company Lularoe. Each sales consultant lives in various states across the US. Up until a few months ago I would get charged state taxes based on which state the consultant was living in. If she lived in Indiana I would get charged Indiana sales tax. But the company got busted for this practice and had to pay back all the taxes. I got dozens of small credits into my bank account over about a month. So it does seem that the government is trying to sort out how to handle taxing online sales.
I'll admit I'm a little worried about my past year of purchasing pipe tobacco online. If they decide I need to pay back taxes, it's going to be a pretty hefty bill.
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Zach
Pro Member
If you can't send money, send tobacco.
Posts: 4,365
First Name: Zach
Favorite Pipe: Too many currently, bound to change
Favorite Tobacco: Haunted Bookshop, Big 'N' Burley, Pegasus, Habana Daydream, OJK, Rum Twist, FVF, Escudo, Orlik Golden Sliced, Kendal Flake, Ennerdale
Location:
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Post by Zach on Aug 4, 2017 12:43:32 GMT -5
Living in Minnesota I started getting charged sales tax for items I purchased on Amazon about a year or so ago. But nobody went back to look at and charge me taxes for purchases prior to that. It's interesting that they would choose to target just tobacco sales. If they feel the need to start applying state taxes to online tobacco sales I'll be disappointed but I also get that this is how things work. But to charge people who most likely don't understand the law back taxes seems a little cruel. As an interesting but connected side note, I've purchased a lot of clothes online from the direct sales company Lularoe. Each sales consultant lives in various states across the US. Up until a few months ago I would get charged state taxes based on which state the consultant was living in. If she lived in Indiana I would get charged Indiana sales tax. But the company got busted for this practice and had to pay back all the taxes. I got dozens of small credits into my bank account over about a month. So it does seem that the government is trying to sort out how to handle taxing online sales. I'll admit I'm a little worried about my past year of purchasing pipe tobacco online. If they decide I need to pay back taxes, it's going to be a pretty hefty bill. This is because Amazon started charging tax almost 4 years ago as a policy if you have an Amazon DC in your state. Now most states have Amazon and all will very soon. About the tobacco, it's not good news but it's not terrible news, either. As long as it's not a tax hike and other BS that could be coming. |
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kraken
Junior Member
Posts: 127
First Name: Laura
Location:
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Post by kraken on Aug 4, 2017 13:36:45 GMT -5
Living in Minnesota I started getting charged sales tax for items I purchased on Amazon about a year or so ago. But nobody went back to look at and charge me taxes for purchases prior to that. It's interesting that they would choose to target just tobacco sales. If they feel the need to start applying state taxes to online tobacco sales I'll be disappointed but I also get that this is how things work. But to charge people who most likely don't understand the law back taxes seems a little cruel. As an interesting but connected side note, I've purchased a lot of clothes online from the direct sales company Lularoe. Each sales consultant lives in various states across the US. Up until a few months ago I would get charged state taxes based on which state the consultant was living in. If she lived in Indiana I would get charged Indiana sales tax. But the company got busted for this practice and had to pay back all the taxes. I got dozens of small credits into my bank account over about a month. So it does seem that the government is trying to sort out how to handle taxing online sales. I'll admit I'm a little worried about my past year of purchasing pipe tobacco online. If they decide I need to pay back taxes, it's going to be a pretty hefty bill. This is because Amazon started charging tax almost 4 years ago as a policy if you have an Amazon DC in your state. Now most states have Amazon and all will very soon. About the tobacco, it's not good news but it's not terrible news, either. As long as it's not a tax hike and other BS that could be coming. I did know that about Amazon, but I guess I was just noticing how no back taxes were charged even for those who already had DCs in their state prior to the change. Or maybe I'm missing some detail? I'm just thinking that if a decision is made to start charging taxes, that's fine and all, but it seems ridiculous to charge back taxes. Even with my story about all those refunds. It was nice to get, but I would have been fine with just not paying a tax going forward. But I know this is not how the world works. |
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Post by trailboss on Aug 4, 2017 13:46:47 GMT -5
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Zach
Pro Member
If you can't send money, send tobacco.
Posts: 4,365
First Name: Zach
Favorite Pipe: Too many currently, bound to change
Favorite Tobacco: Haunted Bookshop, Big 'N' Burley, Pegasus, Habana Daydream, OJK, Rum Twist, FVF, Escudo, Orlik Golden Sliced, Kendal Flake, Ennerdale
Location:
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Post by Zach on Aug 4, 2017 13:53:02 GMT -5
This is because Amazon started charging tax almost 4 years ago as a policy if you have an Amazon DC in your state. Now most states have Amazon and all will very soon. About the tobacco, it's not good news but it's not terrible news, either. As long as it's not a tax hike and other BS that could be coming. I did know that about Amazon, but I guess I was just noticing how no back taxes were charged even for those who already had DCs in their state prior to the change. Or maybe I'm missing some detail? I'm just thinking that if a decision is made to start charging taxes, that's fine and all, but it seems ridiculous to charge back taxes. Even with my story about all those refunds. It was nice to get, but I would have been fine with just not paying a tax going forward. But I know this is not how the world works. They started planning the Shakopee DC in early 2015 and I think it opened around the end of 2016 or something like that. No, they don't charge back taxes, just like here in Indiana. My father buys virtually every single thing you could possibly buy on Amazon only. He doesn't even go out shopping since about 2013 and there were no back taxes involved I've never heard of in each state. Amazon is just about to be the very first company valued at $1 trillion dollar value so we'll quickly see them move grocery stores and other stores into every single state, I believe by 2018-19. They should not be going after solely tobacco, this tax law for online sales is being looked into at every level. It's nowhere near new, I remember back in 2004-5 when they were talking about this for online sales. They need to be uniform, but we all know our government taxes and regulations are a total nightmare and failure on so many levels. |
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Zach
Pro Member
If you can't send money, send tobacco.
Posts: 4,365
First Name: Zach
Favorite Pipe: Too many currently, bound to change
Favorite Tobacco: Haunted Bookshop, Big 'N' Burley, Pegasus, Habana Daydream, OJK, Rum Twist, FVF, Escudo, Orlik Golden Sliced, Kendal Flake, Ennerdale
Location:
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Post by Zach on Aug 4, 2017 13:54:37 GMT -5
Seems we just may need to go dump some tea in some harbor... |
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Post by trailboss on Aug 4, 2017 13:56:11 GMT -5
Amen, brother.
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Post by PhantomWolf on Aug 4, 2017 14:33:12 GMT -5
I think Pennsylvania pays tax for Amazon since our state has a distro center. Not sure how it works. This is terrible if true, but at least Pipes&Cigars is in PA. I give them the bulk of my business.
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Deleted
Deleted Member
Posts: 0
Location:
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Post by Deleted on Aug 4, 2017 15:06:08 GMT -5
Living in Minnesota I started getting charged sales tax for items I purchased on Amazon about a year or so ago. But nobody went back to look at and charge me taxes for purchases prior to that. It's interesting that they would choose to target just tobacco sales. If they feel the need to start applying state taxes to online tobacco sales I'll be disappointed but I also get that this is how things work. But to charge people who most likely don't understand the law back taxes seems a little cruel. As an interesting but connected side note, I've purchased a lot of clothes online from the direct sales company Lularoe. Each sales consultant lives in various states across the US. Up until a few months ago I would get charged state taxes based on which state the consultant was living in. If she lived in Indiana I would get charged Indiana sales tax. But the company got busted for this practice and had to pay back all the taxes. I got dozens of small credits into my bank account over about a month. So it does seem that the government is trying to sort out how to handle taxing online sales. I'll admit I'm a little worried about my past year of purchasing pipe tobacco online. If they decide I need to pay back taxes, it's going to be a pretty hefty bill. This is because Amazon started charging tax almost 4 years ago as a policy if you have an Amazon DC in your state. Now most states have Amazon and all will very soon. About the tobacco, it's not good news but it's not terrible news, either. As long as it's not a tax hike and other BS that could be coming. Agree. Nothing to fear here folks - A big nothing burger. Taxation is the price we pay for a civilized economy where business and free market forces prevail. I'm sure we can all agree we've had a good ride on purchasing tobacco, as well as other tradable commodities , via the Internet for quite some time; nevertheless, change is both inevitable and necessary. |
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Post by haebar on Aug 16, 2017 5:23:13 GMT -5
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Post by crapgame on Aug 16, 2017 8:25:29 GMT -5
My Question is what will stop people from purchasing tobacco in states that have minimal tobacco taxes for people who live in states that have enormous taxes and just ship the tobacco to the person in the high tax state?
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Post by trailboss on Aug 16, 2017 16:17:23 GMT -5
This is because Amazon started charging tax almost 4 years ago as a policy if you have an Amazon DC in your state. Now most states have Amazon and all will very soon. About the tobacco, it's not good news but it's not terrible news, either. As long as it's not a tax hike and other BS that could be coming. Agree. Nothing to fear here folks - A big nothing burger. Taxation is the price we pay for a civilized economy where business and free market forces prevail. I'm sure we can all agree we've had a good ride on purchasing tobacco, as well as other tradable commodities , via the Internet for quite some time; nevertheless, change is both inevitable and necessary. I respectfully disagree...rather than taxing online tobacco sellers, give local B&M's the same break. The politicians don't have a funding problem, they have a spending problem. |
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tedvig
Junior Member
Posts: 293
Location:
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Post by tedvig on Aug 17, 2017 0:09:58 GMT -5
I hope Minnesota doesn't start. We have something like a 95% tobacco tax!
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Post by haebar on Aug 17, 2017 16:08:42 GMT -5
My Question is what will stop people from purchasing tobacco in states that have minimal tobacco taxes for people who live in states that have enormous taxes and just ship the tobacco to the person in the high tax state? That would be hard to stop. |
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