When Will Inter-State Tobacco Sellers Start Collecting Tax?

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cajomu

Member
Jul 15, 2018
124
0
Given the outcome of the South Dakota vs. Wayfair lawsuit, I assume it's only a matter of time before internet tobacco merchants have to start collecting taxes on out-of-state sales.
Has anyone heard anything more about this?

 

timt

Preferred Member
Jul 19, 2018
1,035
4
Wasn't going to buy any today but now that I've been triggered...

 

sablebrush52

Preferred Member
Jun 15, 2013
9,712
363
Personally, I could care less. I always paid my use taxes along the way because I had no doubt that this day would come. Besides, in California, use taxes are deducted from the state taxes I have to pay, so it's a wash.

 

aldecaker

Preferred Member
Feb 13, 2015
4,412
3
Damn, Jesse. What was it like living in the monastery with Jim back in the day? :rofl:

 

sablebrush52

Preferred Member
Jun 15, 2013
9,712
363
In this depraved den of sneak thieves and tax cheats, you're in inspiration to us all!
I don't screw around with taxes. I've seen too many people get slaughtered financially because they thought they could get away with something.
30+ years ago I underwent an IRS audit. To put it politely, the auditor was a foul demon from the lowest depths of Hades. The judgement against me amounted to almost all I had in the bank. Improbably, I got expert advice from two other IRS auditors I met at a bar, who liked artists more than they liked the IRS and who also hated crooked unethical auditors. Following their advice I finally passed the audit after 5 months, while doing as much professional damage as possible to the crooked unethical auditor who had conducted the original audit. Since then I have been very very careful with anything to do with taxes.

 

ashdigger

Preferred Member
Jul 30, 2016
5,271
33
Is this where I explain the life membership in the Sovereign Citizens fan club headquartered in a gorgeous federal facility.
I'm like Jesse. There are many aspects of life where I poke the bear..... the IRS ain't one of them.

 

prairiedruid

Preferred Member
Jun 30, 2015
1,679
9
Minnesota Sale Tax
Minnesota will start requiring the collection of sales tax by internet vendors on October 1st or when the vendor has 10 or more sales in the state reach $100,000. At least I can still stock up during the Peter Stokkebye sale in August.

 

mso489

Preferred Member
Feb 21, 2013
26,240
440
Sales taxes seem to be a little (or a lot) different in every state. I won't name any, but I think some of the online pipe and pipe tobacco retailers already charge sales taxes. Since I'm a slow poke on tobacco consumption, this isn't looming as a threat, but if prices on blends are jacked up ten to twenty percent or more, that would certainly limit my purchases more. I'm glad I enjoy some old time tub tobaccos that don't cost much comparatively speaking. If I only enjoyed the top tier priced tins, I'd really be concerned. If I halved my already moderate consumption, I could coast for many moons.

 

zitotczito

Preferred Member
Aug 12, 2014
1,086
2
Since I am in PA I already pay the tax from many vendors. I also enter what I don't pay the tax on for out of state purchases to my year end tax return. Much cheaper to me than hiring a lawyer to defend charges of tax fraud.
In either case I have a fully stocked seller so my tobacco purchases are very little now.

 

sablebrush52

Preferred Member
Jun 15, 2013
9,712
363
I also enter what I don't pay the tax on for out of state purchases to my year end tax return. Much cheaper to me than hiring a lawyer to defend charges of tax fraud.
+1

 

cajomu

Member
Jul 15, 2018
124
0
I'm not trying to avoid paying any taxes that I owe. My understanding is that, until now, sales tax has not been collected on out-of-state internet sales because it is not owed. Here's how a recent article described the issue:
"The United States Supreme Court has sided in favor of states collecting online sales tax in the South Dakota v. Wayfair decision. The Court has ruled that states are allowed to collect tax from online retailers even if companies don’t have a physical presence in the state.
"In what has been called the 'tax case of the millennium,' South Dakota was looking to repeal the 1992 Quill v. North Dakota decision, which ruled that companies could only charge sales tax in states where they had a physical presence, like corporate offices or a warehouse." (https://www.racked.com/2018/6/21/17488548/south-dakota-wayfair-supreme-court-decision)
So, unless I am mistaken, in the past, if you purchased something from an out-of-state internet merchant, you owed no sales tax to the state in which you reside because, under the Quill v. North Dakota decision, your state had no legal authority to collect sales tax. Under the Wayfair decision, they are now permitted to require an out-of-state internet merchant to collect sales tax on their behalf.
Am I wrong?

 

prairiedruid

Preferred Member
Jun 30, 2015
1,679
9
Yes you are technically wrong. Quill decision said states can't force businesses to collect sales tax unless they had a physical presence in that state. Just because the business couldn't be forced to charge the tax doesn't mean that you don't owe the tax. It is your responsibility to send the tax you owe to your state. Most people don't do this. By forcing businesses to collect it at the time of sale, states will get the money they are due.

 

cajomu

Member
Jul 15, 2018
124
0
How can a state require you to pay sales tax on a sale that they don't have the right to tax?