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Received the Letter

I wonder how much it cost the state of NJ to attempt to collect this $20?

I'm convinced now more than ever that the dimmest and dumbest in our society have taken charge.
 
I'm sure there are a number of things that can be said about politicians and bureaucrats, most of them deservedly unkind.
 
Seanholio said:
I'm sure there are a number of things that can be said about politicians and bureaucrats, most of them deservedly unkind.
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I'm not talking about the politicians and bureaucrats, but one could include them, I suppose.

I'm talking about the groups that shape the way things are done, the squeaky wheels that get the grease.
 
Seanholio said:
vinnyvega said:
In Massachusetts, it is. People go to New Hampshire to buy tobacco and booze to avoid the state tax. If you get caught, they assess a fine that is equivalent to a years consumption of what you are caught with. It doesn't happen often but I have heard that state troopers pull random people over coming across the boarder. There is a person from the tax department with them and the fine is assessed. If you do not pay it, your license gets suspended. It's too bad because there is pretty much no other reason to go to New Hampshire. Except maybe to HERF with a couple BOTLs. Sorry guys!!
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....except perhaps to experience a little freedom (as in speech). :sign:
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Haha, right on brother. You leave New Hampshire alone. If I don't want to wear I seat belt, I won't!!! (I do anyway :laugh: )

On serious note, what would prevent EVERY credit card from doing this in the future? It seems that no card is safe against this if they are looking at purchases from 03'.
 
In Michigan it works this way.

A retialer can sell to out of state parties and get back the tax they pay on retail tobacco by providing an address and inventory of what was sent where.

So someone in MI sells Jonsey a box of cigars. The retialer (B&M or online) gets a rebate for telling them we sent this box to Brian at this address out of state.

So, out of state buyers are not paying the taxes in either the state they buy in, or live in.

If you live in Michigan it is ok to buy as much as you want online. But, when it gets in, you are to take a receipt down to the tobacco tax dept. and show it to them, they then charge you the 32% that MI residents have to pay. At least that is the "law".

I would imagin other states are the same.
 
The states are bound and determined to collect taxes on internet sales. Lost taxes to other states used to be no big deal, your vacationers buy here my vacationers buy there it all works out in the end. The internet has changed that. Tax evasion is illegal, tax avoidance isn't. Thus many of us have started buying items over the internet to save on sales taxes. This is the money the states really want. Liquor and tobacco is taxed by most states prior to sales tax. For many states, however stupid it may seem, this is a major source of funding for health care. Most states laws state that taxes must be paid on these items even if you purchased them elsewhere.

Tobacco and liquor are easy targets. Not too many people are going to get up in arms or even hear about state/credit card collaboration in tax enforcement. That is why they will be blindsided in a year or so when the states start sending out sales tax bills using the tobacco and liquor precedents they are setting today.
 
I understand the just of what is being said and what is going on, but lets get serious. Being sent a tax bill for a purchase made in '03 is a bit ridiculous. Also, wouldn't it be easier for an online merchant to charge, collect, and report out of state sales tax and thus not burden the buyer in the future?

As an after thought, what about Duty Free purchases at international air ports? If I buy there, will I be sent a local tax bill? If I pay cash, it can't be traced.
 
Selling cigars is a pain in the ass, as I'm sure most vendors will attest to. In California, you have to keep very stringent records of all sales, including where you purchased your stock from and invoices to every person you sold to, even across statelines. When DHS, board of equalization, or any other authority comes knocking on your door (and they do), you better have all invoices in order otherwise the retailer can (and most likely will) be fined or even have their license pulled. Running a tobacco business is not easy, and it's a true shame. Can't be pissed at New Havana, they're just complying with the law.
 
I'm going to focus my purchases to trusted vendors like PuffStuff, Idahogn, and Isy and use money orders. I'm not going to make this easy for them by leaving a credit trail.
 
NullSmurf said:
I'm going to focus my purchases to trusted vendors like PuffStuff, Idahogn, and Isy and use money orders. I'm not going to make this easy for them by leaving a credit trail.
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Never heard of Idahogn, but it seems this is the only way to avoid what is coming down the pipe line.
 
NullSmurf said:
I'm going to focus my purchases to trusted vendors like PuffStuff, Idahogn, and Isy and use money orders. I'm not going to make this easy for them by leaving a credit trail.
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Aye, but if they're required to keep detailed records of the transactions does it matter how one pays?

Is there a listing anywhere of the states that require such records to be kept on out of state purchases? It would be nice to know.
 
StinkiMonki said:
Pretty soon I won't even be able to purchase lap dances with my MasterCard. This is maddness!!!!!
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+1

I'm really going to miss pretending that my card doesn't work just so I can keep swiping it in the slot

:sign:
 
Contacted the vendor. They stated that Ohio requires them to report all sales by state. Ohio must be sharing this info with NJ.
 
Maybe my thinking is off here but it should be up to the retailer to collect the tax on internet sales. If he fails the burden should be on him.
 
StinkiMonki said:
Pretty soon I won't even be able to purchase lap dances with my MasterCard. This is maddness!!!!!
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Geoff, you are probably good there as long as the guys giving you the lap dances don't report the income :rolleyes:
 
cigarsarge said:
Maybe my thinking is off here but it should be up to the retailer to collect the tax on internet sales. If he fails the burden should be on him.
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It all depends....he then has to look out for 50 states and international tax numbers...rather than just his own.
The alternative is to just provide a list of sales that were made out of state and let the Gov't hash it out....although the responsibility DOES lie with the purchaser.

Some large tech companies do not collect tax...we(where I work) have to keep track of those purcashes and pay the tax to our state.

Yea...it's pretty messed up, but the alternative is interstate competition...and that was bad way back when.

Now we have it even worse(linky)...and yes, some of these people were VOTED into office!

Oh yea...here's a lite read on Intestate Commerce.
 
Thanks Anthem for posting that about Michigan's rule. What's up with New Havana I really enjoy doing business with Dan.
 
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