Internet Tax, how will it effect cigar purchasing?

[BigBear]

So I'm curious...
 
Has anyone thought about the repercussions of the proposed internet tax & the purchase of cigars here & abroad?
Purchases online here, they would simply go up even more...
But I'm thinking that if it is enacted, it will ultimately put a halt to cigar purchases overseas.
 
Will it effect person to person transactions?
 
These may be odd questions, but I've been thinking about this the last couple of days & can see how it could be much further reaching than simple online purchases being taxed.
 
Thoughts?

 

[Devil Doc]

Won't effect me at all. I live in cigar and sales tax free NH.
 
Doc

 

[ironpeddler]

Well, for those of us that live in an OVER TAXED state, this taxation will cripple my buying habits and cause me not be able to order new releases ASAP as I REFUSE to pay the additional taxes. Call me un-American all you want, I pay enough taxes already and God knows more than the average tax payer.
 
BUT, my only saving grace is I live a few hours from Pennsylvania and I will drive there to do an occasional mass buy....or just jump in the car and visit Hank once in a while to do my buying at his B&M.  :laugh: 

 

[Rod]

It'll just make the black market even blacker.

 

[grateful1]

It shouldn't.
 
In most states, you should be paying the tax on your purchase.
 
BTW - it's not an 'internet' tax....it's requiring the companies that sell over the internet (at certain size/number) to collect the tax from which the purchaser id located.

 

[Pugman1943]

Yes, I gave it some thought and came up with an interesting angle. Let's say they go off the Internet- so the ordering is just a tad more involved. Call them up, place your order. Tax resolved?

Just a thought.

 

[Devil Doc]

Well, for those of us that live in an OVER TAXED state, this taxation will cripple my buying habits and cause me not be able to order new releases ASAP as I REFUSE to pay the additional taxes. Call me un-American all you want, I pay enough taxes already and God knows more than the average tax payer.
 
BUT, my only saving grace is I live a few hours from Pennsylvania and I will drive there to do an occasional mass buy....or just jump in the car and visit Hank once in a while to do my buying at his B&M.  :laugh:

There's a mortadella sandwich and a beer waiting for ya.
 
Doc

 

[grateful1]

Yes, I gave it some thought and came up with an interesting angle. Let's say they go off the Internet- so the ordering is just a tad more involved. Call them up, place your order. Tax resolved?

Just a thought.

 
 
It's called 'mail order'....you're still supposed to pay the tax.
 
What the business will be required to do is take the tax based on the credit card or shipping address. (not sure which).
 
Either way...someone is supposed to be paying the tax.

 

[drunkfish3]

My question is how is my state getting that money? Will the out of state company now have to file a sale tax return for every state they sell in? Also at least in NY you have to have a sales tax certificate to collect the tax and that is you id number for filing so will all these companies have to get one for NY and every other state. I don't like the idea since i buy a lot of stuff online because of the no tax but if i am paying sale tax i want it to go to my state.

 

[kann]

If you are buying from an OCONUS location, would you not be subject to whatever taxes are or are not imposed at that location, and not a blanket tax just because you live in the USo'Merka?  So, that shouldn't invade privacy, as I can see where that train of thought is leading towards the acquisition of ISOM's.

 

[searsa1]

My question is how is my state getting that money? Will the out of state company now have to file a sale tax return for every state they sell in? Also at least in NY you have to have a sales tax certificate to collect the tax and that is you id number for filing so will all these companies have to get one for NY and every other state. I don't like the idea since i buy a lot of stuff online because of the no tax but if i am paying sale tax i want it to go to my state.

 
S.743 that cleared the Senate exempts companies with remote sales of >1 million from collecting sales taxes. To collect the sales tax the state must either be a member of the SSUTA or meet the minimum requirements listed:  
 
(i) a single entity within the State responsible for all State and local sales and use tax administration, return processing, and audits for remote sales sourced to the State:
 
(ii) a single audit of a remote seller for all State and local taxing jurisdictions within that State; and
 
(iii) a single sales and use tax return to be used by remote sellers to be filed with the single entity responsible for tax administration
 
So more than likely if you do more than 1 million in out of state sales you are going to have to get a tax number in every other state.  it will be up to a central authority in each state to administer the online taxes. Each state must also provide free software to calculate  the taxes owed. If a state fails to comply with all of the above criteria they will not be able to enforce the law if it passes. I am sure NY will be compliant as they like money.  

 

[ironpeddler]

Well, for those of us that live in an OVER TAXED state, this taxation will cripple my buying habits and cause me not be able to order new releases ASAP as I REFUSE to pay the additional taxes. Call me un-American all you want, I pay enough taxes already and God knows more than the average tax payer.
 
BUT, my only saving grace is I live a few hours from Pennsylvania and I will drive there to do an occasional mass buy....or just jump in the car and visit Hank once in a while to do my buying at his B&M.  :laugh:

There's a mortadella sandwich and a beer waiting for ya.
 
Doc

 
What time do you guys wake up on Sunday mornings? I'll bring the fresh mozzarella and Italian bread from Brooklyn. 
 
I'm in Heaven!

 

[beyond the band]

If there is a tax I feel it should be the state the business is located in. Why should Kalifornia get 8.5 percent of a purchase I make in another state?

 

[JHolmes763]

I don't see/understand the reference to it affecting our privacy.
 
This would not affect my purchases at all. You could see this coming for miles and knew it was only a matter of time before the "luxury" of no sales-tax online would go away. States are missing out on money, plain and simple.
 
-John

 

[grateful1]

Ok. One more time...you are already supposed to be paying the tax to your state.
This is not a new tax - it's making those companies responsible to collect the tax.

Please, by all means, tell me I'm not correct. Or that I'm missing something.

If you are in CT and buy online from Fla, you are supposed to pay CT tax.

Work buys software and goods from other states - we have to report and give tax to CT for those purchases.

 

[Not A Nice Person]

*shrug*
 
I like roads, parks, schools, and fire departments. And running water.   :thumbs:
 
Taxes are the price we all pay for civilization.  My local sales tax is 8.25%, highest in the state, and generally, that's mostly encouraged me to buy locally---if the price is roughly the same, but shipping is the same or more than the tax, why wait on UPS?
 
~Boar

 

[JHolmes763]

Ok. One more time...you are already supposed to be paying the tax to your state. This is not a new tax - it's making those companies responsible to collect the tax. Please, by all means, tell me I'm not correct. Or that I'm missing something. If you are in CT and buy online from Fla, you are supposed to pay CT tax. Work buys software and goods from other states - we have to report and give tax to CT for those purchases.

 
Yes, supposed to, but nearly no one does. I don't have any hard numbers, but that's what one of the articles about this said. I'd imagine because it's hard to track and enforce.

 

[BlindedByScience]

Yes, it's the individual's responsibility to collect the taxes.  Problem with shifting the burden to small business is that they now have to be experts in all the state and local taxes there are.  
 
No surprise that Amazon is one of the companies behind the tax.  Why?  Well, they have it figured out, and they'd be thrilled to host your small businesses mail order fulfillment for you....for a piece of the action.  Oh, but they don't sell tobacco, so the smaller boutique cigars stores aren't included here.  IMHO it puts a huge burden on small businesses.  An unnecessary burden, again, IMHO.

 

[ironpeddler]

*shrug*
 
I like roads (funded by taxes already incorporated in gasoline prices and collected on toll roads), parks (locally, funded by our property & business taxes...Federal, funded by out income tax withholdings), schools (funded by local school taxes), and fire departments (if it's volunteer, funded by donations and township support...if a full time department, funded by our property and business taxes). And running water (MUAs are funded by mandatory water & sewer payments).   :thumbs:

~Boar

 
Why the shrug?
 
Are you insinuating our states need more? The problem is Boar...THEY ALWAYS NEED MORE! And it's always at our expense.
 
I don't know where you live, but in every town and city I've ever lived in they ALWAYS make sure there is a separate tax for every specific need.

 

[Devil Doc]

Let's be careful, gentlemen. This could get ugly and political.
 
Doc