Well, it finally happened.....

[psyktek]

Got my bill from the state today for the cigarettes I've bought online since 2001.
The data was provided by two internet dealers under the Jenkins Act, and I now owe
over $600 in back Stamp Tax and Sales Tax. :angry2:

The back of the reporting form for future purchases had a category that included cigars and pipe tobacco, so I guess I can also expect bills for all the cigars I've ordered over the internet in the past few years (unless I ordered them from Native Americans, who are apparently exempt from reporting).

OK that last part's likely an exaggeration, but I really do wonder how long it will take the State Tax Commissars to realize that some folks may be ordering things other than cigarettes on the internet.....

Wonder what JR's, MD's, CI's, Mike's, etc.'s take would be on this? Would they comply if contacted by the Utah Tax Commission asking for their customer database in Utah?

 

[Swissy]

Oh Crap!
that sucks...

 

[BlindedByScience]

Had a buddy whose mom used to buy cigs on line from a huge dealer back east. What happened was the state of Washington got interested (in general, not just at her) so they sued them and won in court. That gave them the legal standing to subpoenae all their phone and internet sales to the state of Washington and she got the bill with a "cease and desist" demand attached. Basically, she had 30 days to come up with the jack or it was bound to get very ugly, very fast. The penalty and tax came to 107% of the face value of the smokes. Yikes.

My understanding is that while the Indians don't have to pay taxes on the smokes to sell them on the reservations, if they ship off the reservaton or if they are even bought by non-tribal members....the purchaser is indeed responsible for the regular taxes.

JR's, CBid/CI, Thompsons, etc. all seem like likely targets to me......:whistling:

The state of Oregon now requires extensive paperwork, etc. to sell via phone or the internet, so most vendors no longer ship to OR.

FWIW - B.B.S.

 

[PuroEsq]

Oh Sh!t if I get a bill in the mail my wife will finally know how much I have ordered and spent on cigars!! :0 :angry:

 

[bmd34202]

I can hear it now....a collective cha-ching reverberating from state capital to state capital as they catch on.

 

[Castaway]

Quick...Everybody burn the evidence...FAST!!

 

[Cheekie]

Oh Sh!t if I get a bill in the mail my wife will finally know how much I have ordered and spent on cigars!! :0 :angry:

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Well you better start making up for it now...lol
Lest we find out how heavy and how hard her rolling pin can be....
:laugh:

 

[CalixEros]

Ouch, that sucks! I wouldn't be surprised if this starts happening more often...

 

[Lopaka]

Well I didn't know that states can tax items purchased on the internet. I wonder when everything else is going to be taxed.

(I know California and Washington have state taxes added on some sites.)

 

[Gonz]

Quick...Everybody burn the evidence...FAST!!

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Now that's funny! :laugh: :laugh: :laugh:

 

[KayakinBoy]

Got my bill from the state today for the cigarettes I've bought online since 2001.
The data was provided by two internet dealers under the Jenkins Act, and I now owe
over $600 in back Stamp Tax and Sales Tax. :angry2:

The back of the reporting form for future purchases had a category that included cigars and pipe tobacco, so I guess I can also expect bills for all the cigars I've ordered over the internet in the past few years (unless I ordered them from Native Americans, who are apparently exempt from reporting).

OK that last part's likely an exaggeration, but I really do wonder how long it will take the State Tax Commissars to realize that some folks may be ordering things other than cigarettes on the internet.....

Wonder what JR's, MD's, CI's, Mike's, etc.'s take would be on this? Would they comply if contacted by the Utah Tax Commission asking for their customer database in Utah?

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good night. :0

 

[lucasbuck]

That really sucks Bob