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Cigarettes sold on internet are due taxes

By jdclyde ·
Taxing sales on the internet? Was never a big enough prize when you were talking between 4 and 6% sales tax. That has all changed when Michigan raised the tax on smokes to one of the highest in the nation, $2 per pack.

People started buying over the internet to save this $20 a carton, but are getting busted now for tax evasion.

http://www.freep.com/apps/pbcs.dll/article?AID=2006602280382

You are suppose to pay state sales tax for anything you buy, even if it comes from out of state over the net. Most don't and there isn't a way to track this "revenue" yet. (I HATE when the government calls my tax dollars revenue).

This $20 a carton IS worth going after though, so governments have been MAKING the on-line dealers disclose ALL sales records and are sending a tax bill to people.

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Similar issue

by JamesRL In reply to Cigarettes sold on intern ...

Recent story about a small town on the BC side of the Alberta BC border. No sales tax in Alberta, 7% in BC. Small town has no big stores in BC near it, larger Alberta town has big box stores Best Buy, Home Depot etc.

BC revenue ministry is now trying to get the records of sales in the Alberta town so it can go back and collect sales tax.

Its one of those things where in law, they have the right, but it hasn't been enforced due to practicality reasons.

On cigarettes and Gas, I grew up near an Indian reservation where there are no sales taxes. There has been a crackdown where stores on the reserve are charged if they dont ask for the Indian status card, because they are supposed to charge tax to non-natives. But if they know you.....

James

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Are you sure

by TonytheTiger In reply to Cigarettes sold on intern ...

that it is a sales tax on cigarettes in Michigan, or a tobacco tax? (Ohio's is $1.75 per pack in addition to the sales tax).

States don't like any of what they call 'tax evasion' but some are worse than others. Tobacco and alcohol are hot ones.

As for internet sales, Ohio uses the honor system. There is a line for unpaid sales tax on the yearly tax form.

Personally, I drive to Kentucky, where a carton is $12 cheaper (it takes two hours, and about $8 in gas to get there and back). This is legal as long as I buy no more than two cartons per smoker in the household (personal use).

Kentucky Trivia: Up until the late 1990's, students in grades 7-12 at many schools were allowed two 15 minute smoke breaks per day :)

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I believe it is classified as

by jdclyde In reply to Are you sure

a "sin" tax, along with alcohol.

I want MY separation of church and state, so I will be allowed to sin without a tax being placed on it! ]:)

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2$, Try ?5

by Tony Hopkinson In reply to Cigarettes sold on intern ...

Tax is on the manufacturers effectively, no one get's to dodge it then. Our tax is so high there are criminal rings smuggling stuff over from europe. A couple more rises and they'll stop messing about with coke, crack and heroin and make some serious money.

I've got this picture of ten tobacco barons before a senatorial committee, saying tax is bad for your health.
LOL

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