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Post by puffy on Mar 24, 2019 22:20:23 GMT -5
I've been told that large corporations such as big box stores and national food chains because they buy in large quantity get discount prices that small business doesn't get.If this is true for large online tobacco sellers it could account in part for higher prices at the local B&M..If it's true.
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Post by smellthehatfirst on Mar 24, 2019 23:30:38 GMT -5
I'm sure it's true for pipes. I'm less sure that it's true for tobacco. Tobacco isn't a high-margin item. Retailers sell tobacco to give you a reason to come into the store and ogle the high-margin pipes on display.
A much easier explanation is that the big online sellers don't have to pay for expensive retail spaces. They don't need foot traffic. They don't care about parking. They just buy a warehouse and get to it.
Lower overhead means they can trim the already low margins on tobacco.
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Post by insignia100 on Mar 25, 2019 7:37:52 GMT -5
I imagine that larger online retailers can also deal directly with the tobacco manufacturers rather than through distributors. Also, it wouldn't surprise me if many of the online retailers ARE the distributors (under a different name) that many B&Ms get their stock from.
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Post by johnlawitzke on Mar 25, 2019 10:46:01 GMT -5
The two big difference is that the online retailers don't charge state tobacco tax.
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Post by Deleted on Mar 25, 2019 11:36:58 GMT -5
The two big difference is that the online retailers don't charge state tobacco tax. Here in NC as of the beginning of the year State sales tax is collected on all tobacco products. Also now I pay State taxes when I place any order from Amazon. I knew it would be this way eventually!! |
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Post by Deleted on Mar 25, 2019 12:36:23 GMT -5
The two big difference is that the online retailers don't charge state tobacco tax. Here in NC as of the beginning of the year State sales tax is collected on all tobacco products. Also now I pay State taxes when I place any order from Amazon. I knew it would be this way eventually!! KY too and a few other states as well. Not a tobacco retailer but Amazon has been charging state tax for longer whether required by individual states or not, perhaps a move to get out in front of any potential liability? |
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Post by johnlawitzke on Mar 25, 2019 12:44:27 GMT -5
The two big difference is that the online retailers don't charge state tobacco tax. Here in NC as of the beginning of the year State sales tax is collected on all tobacco products. Also now I pay State taxes when I place any order from Amazon. I knew it would be this way eventually!! Yup, SP charges me Michigan sales tax but not the state tobacco tax. |
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Post by Deleted on Mar 25, 2019 12:44:47 GMT -5
The two big difference is that the online retailers don't charge state tobacco tax. I noticed Tobaccopipes still isn't charging KY state sales tax. Possibly a bad move on their part? |
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Post by insignia100 on Mar 25, 2019 13:03:35 GMT -5
Here in NC as of the beginning of the year State sales tax is collected on all tobacco products. Also now I pay State taxes when I place any order from Amazon. I knew it would be this way eventually!! KY too and a few other states as well. Not a tobacco retailer but Amazon has been charging state tax for longer whether required by individual states or not, perhaps a move to get out in front of any potential liability? Part of the reason Amazon is doing it is its simply easier for them. As they move to increase their number of warehouses so shipping time is reduced for everyone, it helps them politically to be able to say, "Hey, we're passing on tax money to <insert state here>." |
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Post by smellthehatfirst on Mar 25, 2019 13:06:59 GMT -5
Here in NC as of the beginning of the year State sales tax is collected on all tobacco products. Also now I pay State taxes when I place any order from Amazon. I knew it would be this way eventually!! Yup, SP charges me Michigan sales tax but not the state tobacco tax. Tobacco taxes are usually applied at wholesale, not at retail. |
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Post by sperrytops on Mar 25, 2019 13:38:25 GMT -5
B&Ms will sometimes discount their bulks if you buy 1/2 pound or more. 5 or 10%. Smellthehatfirst, I don't think the taxes are applied at the wholesale level. If I buy tobacco at a Tinder Box in California, my receipt will reflect the addition of State sales tax to the purchase above the cost of the tobacco. So I am paying sales tax at time of purchase. I know all retailers have to do a monthly sales tax reconciliation and send the State government a check. This is based on actual customer sales in the store.
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Post by johnlawitzke on Mar 25, 2019 14:53:00 GMT -5
B&Ms will sometimes discount their bulks if you buy 1/2 pound or more. 5 or 10%. Smellthehatfirst, I don't think the taxes are applied at the wholesale level. If I buy tobacco at a Tinder Box in California, my receipt will reflect the addition of State sales tax to the purchase above the cost of the tobacco. So I am paying sales tax at time of purchase. I know all retailers have to do a monthly sales tax reconciliation and send the State government a check. This is based on actual customer sales in the store. We are talking tobacco tax not sales tax... |
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Post by sperrytops on Mar 25, 2019 15:02:52 GMT -5
True, then. Tobacco tax is an excise tax imposed on the distributor. In California it's 28% for non cigarette tobaccos. Sales tax is imposed on the end consumer at point of sale. So add another approx 8%. 36% in total.
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Post by Deleted on Mar 25, 2019 15:34:16 GMT -5
We are talking tobacco tax not sales tax... Cool beans John but they are connected, especially for state tax return purposes. Some tobacco e-tailers are charging state sales tax, others not. What's a poor boy to do? |
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Post by roadsdiverged on Mar 25, 2019 16:11:02 GMT -5
The two big difference is that the online retailers don't charge state tobacco tax. Here in NC as of the beginning of the year State sales tax is collected on all tobacco products. Also now I pay State taxes when I place any order from Amazon. I knew it would be this way eventually!! I pay sales tax when I order from SP now. |
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Post by Deleted on Mar 25, 2019 16:15:22 GMT -5
The two big difference is that the online retailers don't charge state tobacco tax. I noticed Tobaccopipes still isn't charging KY state sales tax. Possibly a bad move on their part? They are now charging me NC sales tax for a few months now, |
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Post by Deleted on Mar 25, 2019 16:22:21 GMT -5
I noticed Tobaccopipes still isn't charging KY state sales tax. Possibly a bad move on their part? They are now charging me NC sales tax for a few months now, NC got the ball rolling, other states have followed. Not a bad thing, just tough to follow and keep up with for tax purposes. |
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Post by Mac on Mar 25, 2019 16:59:35 GMT -5
Some state treasury departments are becoming aggressive in pursuit of tax revenues from internet sales. I doubt many will be able to avoid it over time.
It may be that e-tailers are required to report out of state sales to those states who demand it - so some states require that, and among those, some get aggressive in pursuing the taxes they levy on their citizens's foreign purchases. That's why some have reported being billed by their states or given warnings that there'll be fines if not reported correctly and taxes paid thereon.
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Post by Deleted on Mar 25, 2019 18:05:39 GMT -5
I get JL's point on state tobacco tax. What a nightmare that would be for etailers.
In my recent experience, Sales Tax is being collected across the board. From pipe dealers to Puritan Pride for vitamins and Hamilton Books, they're all collecting State sales tax now.
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Post by Deleted on Mar 26, 2019 14:57:02 GMT -5
B&Ms will sometimes discount their bulks if you buy 1/2 pound or more. 5 or 10%. Smellthehatfirst, I don't think the taxes are applied at the wholesale level. If I buy tobacco at a Tinder Box in California, my receipt will reflect the addition of State sales tax to the purchase above the cost of the tobacco. So I am paying sales tax at time of purchase. I know all retailers have to do a monthly sales tax reconciliation and send the State government a check. This is based on actual customer sales in the store. We are talking tobacco tax not sales tax... Colorado tried to make Payless collect State Tobacco Tax and they packed up and moved to Florida. |
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Post by captblack on Mar 26, 2019 18:51:46 GMT -5
I've been told that large corporations such as big box stores and national food chains because they buy in large quantity get discount prices that small business doesn't get.If this is true for large online tobacco sellers it could account in part for higher prices at the local B&M..If it's true. B&Ms have higher prices around here because of taxes, taxes, and more taxes. An example would be my local shop that almost always has Esoterica in stock. They are at $18.00/tin, but there is a $2.90/oz tobacco tax added to the cost as well as a sales tax. I deal with it because the taxation is not their fault. |
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