Smoking Pipes Reporting Back to IRS ??

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kola

Preferred Member
Apr 1, 2014
595
4
I haven't ordered from SP in a long time. I decided to place a order only to find out about the tax disclosure that I needed to agree to before ordering. It appears they send in a tax report to the feds on every purchase and hold the customer resposible to report and pay the tax? WTF ?
=========================================++++++++++++++

Colorado State Sales Tax

As of July 1, 2017, all online retailers, including Smokingpipes.com, are legally obligated to report taxable purchases to the state of Colorado. Accordingly, we're required to inform you of the following:
(1) Smokingpipes.com does not collect Colorado Sales or Use Tax;

(2) This purchase is not exempt from Colorado sales or use tax merely because it is made over the internet or by other remote means; and

(3) the State of Colorado requires that a Colorado purchaser (a) file a sales or use tax return at the end of the year reporting all the taxable purchases that were not taxed and (b) pay tax on those purchases.



What does this mean for you? At the end of the year, we'll only submit to the Colorado Department of Revenue the four pieces of information that they've required us to report: customer name, customer billing address, customer shipping address, and the total dollar amount of Colorado purchases made by each customer during the previous calendar year.
Here's what we won't report: details about what you've ordered. We pipe smokers can be a private lot, so don't worry--we'll keep the details about what you've ordered just between us. And in order to help you Coloradans satisfy your obligations to the state, we'll be providing you with an end of year summary as well.
As always, if you have questions or concerns, please don't hesitate to give us a call at 888-366-0345 or to write to us at info@smokingpipes.com.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

 

mso489

Preferred Member
Feb 21, 2013
26,695
1,075
I'm not happy about it, but I see this as eventually affecting all the U.S. states with sales taxes. B&M retailers have been disadvantaged, and the states have been circumvented on their taxes, so this will probably get to be standardized and streamlined. Most states cannot afford not to go after this. Maybe SP is among the first because it has become one of the larger corporate entities, now with a branch overseas.

 

kola

Preferred Member
Apr 1, 2014
595
4
Just tag it onto my bill. I don't want to have to play around come tax-time with this BS.
Addios Smoking Pipes ! I stopped ordering anything from them years ago after three botched orders which were clearly their fault. I just wanted to get some Drucquer and Sons ....but not anymore.

 

jvnshr

Moderator
Staff member
Sep 4, 2015
3,974
25
Baku, Azerbaijan
I am not a US citizen and I have no connection to SP but doesn't this explain the situation?
As of July 1, 2017, all online retailers, including Smokingpipes.com, are legally obligated to report taxable purchases to the state of Colorado.
 

jvnshr

Moderator
Staff member
Sep 4, 2015
3,974
25
Baku, Azerbaijan
Living in a unitary state, I forgot about the Federal Government. It is more complicated than I thought then. Thanks aquadoc.

 

haparnold

Preferred Member
Aug 9, 2018
1,164
403
Lexington, KY
Seems to me that this effects 4Noggins, P&C, etc. just as much as SP, unless SP is the only major online retailer not collecting sales tax. I think the OP has some misplaced aggravation with SP that might be better directed at the people who make tax legislation, unless I'm misunderstanding something.

 

winton

Preferred Member
Oct 20, 2010
2,113
31
IL has a Use Tax. Effectively, this is the sales tax on items bought from other states. To comply, you could track all your online purchases, or just use a specified percent of your income. I usually find it easier to just use their chart.

 

kola

Preferred Member
Apr 1, 2014
595
4
No ax to grind here. If that were the case I'd go into more details.
I just placed order a from 4 Noggins, no tax was tagged on my order and no disclosure (contractual) statements about customers having to report/pay taxes down the road.
As I mentioned I don't care if SP charges tax, just add it on my bill. I was just wondering why SP does it that way in comparison to other tobacco retailers.

 

loadclear

Member
Nov 13, 2017
107
2
I'm not sure where you read "IRS" of "Feds" in that.
I read "Colorado Department of Revenue"
So your state requires anyone doing business in the state to report taxable sales. That's a "your state" problem, not a Fed or SP problem.
SP, or any online retailer has three options- Choose not to do business in Colorado (ie not ship to you), send the required information to the Colorado Department of Revenue, or violate Colorado law by shipping to you and not reporting it.

 

mso489

Preferred Member
Feb 21, 2013
26,695
1,075
With shipping and taxes, this may be a revival of the B&M shops which will now have more comparable prices. As mentioned, I'm not happy about it, but trying to invent a silver lining. I'm not needing a pipe, for sure, nor tobacco, but I am tempted by a sale now and then. That PC price on an unfinished Peterson ... rare to see a Pete of any kind at the price. And so forth.

 

haparnold

Preferred Member
Aug 9, 2018
1,164
403
Lexington, KY
I seem to recall that several online retailers don't ship to Washington state because of tax policies. Is this true? I wouldn't be surprised to see an expansion of this to other states in the future.

 

woodsroad

Preferred Member
Oct 10, 2013
8,360
240
Hap, the reason that tobacco retailers won’t ship tobacco to Washington state is that state has made it illegal to do so. Not a tax issue, although I’m sure that WA also requires e-tailers to collect a sales/use tax.

 

prairiedruid

Preferred Member
Jun 30, 2015
1,694
28
Actually after the Supreme Court case this year that North Dakota won states now can require online retailers to collect sales tax at time of purchase. Just a matter of time until each state passes a law to activate the collection.

 

briarbuck

Preferred Member
Nov 24, 2015
752
158
It probably has to do with Sales tax. The vendor has to pay tax if they ship over a certain number of transactions or a certain number of $'s. If you live in a State that does not order much tobac, you may/should in fact be exempt.

 

prairiedruid

Preferred Member
Jun 30, 2015
1,694
28
you may/should in fact be exempt.
Nope you always were on the hook for the sales tax; just used to be you had to self report it which most people don't do, hence the court case to force retailers to collect it.

 
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