Notice of unpaid tobacco tax in NJ

Log in

SmokingPipes.com Updates

New Cigars




PipesMagazine Approved Sponsor

PipesMagazine Approved Sponsor

PipesMagazine Approved Sponsor

PipesMagazine Approved Sponsor

PipesMagazine Approved Sponsor

Status
Not open for further replies.

catyrpelius

Starting to Get Obsessed
Jul 9, 2014
207
3
New Jersey
I just received an invoice from the New Jersey department of the treasury and their Cigarette & Tobacco Products Tax division. Seems I owe them some unpaid tax from a purchase I made about a year ago from a company in Illinois... On a $17.78 purchase I owe $6.96... I called up and seems that the charge was legitimate, the lady also said that the information about the purchase was sent to them by the tobacco company in Illinois.
Does anyone have any additional information on this, or have you received a similar invoice?

 

pagan

Lifer
May 6, 2016
5,963
28
West Texas
That sounds like BS, the purchase was made from a company in Ill they should collect taxes on sales for that state, does NJ have some weird internet sales tax they impose on their residents ?

 

catyrpelius

Starting to Get Obsessed
Jul 9, 2014
207
3
New Jersey
I made the purchase a little more then a year ago. Yes it would have been from pipe tobacco, a single tin of Penzance if I remember correctly.
According to the nice lady I talked to on the phone, the only reason the state of NJ knew about the purchase was because it was reported to them by the Illinois company. I'm not to worried about having to pay tax on purchase from Illinois, but if this becomes common with other states this could get expensive...

 
Jun 27, 2016
1,273
117
What company? Would like to know so that I never shop there. Most states expect their residents to report and pay any internet sales tax not collected by the out-of-state merchant, but I have never heard of the merchant being responsible for reporting a consumer to their respective state for non-payment, let alone doing it of their own volition. Kind of surprised that this is not a phishing scam.

 

pappymac

Lifer
Feb 26, 2015
3,273
4,269
Most states have some form of internet sales taxation. For some states, the Websites are supposed to collect the taxes and send them to the state. For other states, the websites are supposed to inform them of the sales and then it is up to the buyer to pay the respective sales tax. This has been upheld in the court system.
One interesting wrinkle, if I remember correctly, is that if you buy something on the internet and pay the sales tax in the state of the vendor, then you don't have to pay the sales tax where you live. It is like driving across state lines, purchasing something at a retailer and paying the sales tax. You don't have to pay a second sales tax when you go home.

 

elpfeife

Lifer
Dec 25, 2013
1,288
477
California sends sales tax auditors to out of state vendors to look for purchases by California residents. They seem to be looking for larger purchases. For small stuff, those formerly known as citizens (now taxpayers and consumers) are supposed to self report out of state purchases and pay on their income tax return.

 
As a business, I slam my doors to out of state tax collectors. Letters just go in trash. There is nothing they can do to me. They have never and never will have jurisdiction of a business not in their state. How can a state have any hold on someone not living or operating a business within their state lines? Laws like that just rely on ignorance of business owners.

 

tuold

Lifer
Oct 15, 2013
2,133
165
Beaverton,Oregon
The administrative overhead costs incurred in collecting that $6.96 far outweighs any revenue the tax might ever bring in. Such stupidity.

 

zitotczito

Lifer
Aug 12, 2014
1,128
175
I saw all of this coming and my cellar is pretty well finished. I live in PA and all of my purchases in the future will be from PA merchant's just to avoid any future problems.

 

fitzy

Lifer
Nov 13, 2012
2,937
27
NY
If you lived in NY that bill would have been $13.33 as NY charges 75% tax on tobacco. How is that even legal?
Anyway you're better off paying it and be done with it. I too would like to know the retailer as I would not buy from them.

 

orobusto

Starting to Get Obsessed
Aug 22, 2015
215
27
New York
"If you lived in NY that bill would have been $13.33 as NY charges 75% tax on tobacco. How is that even legal?"
That's just the tobacco tax, don't forget the roughly 8% sales tax depending on where you live in the state. It stinks to live near some great shops like Park Lane and Cup o' Joes and not go as often as I'd like due to the insane taxes imposed by the state.

 

jpmcwjr

Moderator
Staff member
May 12, 2015
24,570
27,077
Carmel Valley, CA
I think this may be it: Internet sales to out of state residents are all reported - at least should be according to law. Then, states can query the database to see which of their residents owe tax. Not all states do that, and those that do generally don't go for small fry (as in fish). So, as mentioned, it seems fishy, but could be a legitimate but absurdly small claim.
So I wouldn't blackball a retailer due solely to their following the law and some over zealous bureaucrat sending out a bill. What have we come to??

 

papipeguy

Lifer
Jul 31, 2010
15,778
35
Bethlehem, Pa.
You could be right, jpmcwjr. Although I always argue that If I buy gas in another state before entering my home state should I pay my home state the difference in the gasoline tax? Or if I buy something in a state with no sales tax to use at home am I liable for the tax?

Our state tax returns has a box where we're supposed to claim internet purchases and the tax we owe the state on those purchases. I don't know anyone who has ever filled that space in.

Oh, it's coming but we should still fight it. I would wager that a constitutional and interstate commerce suit could be defended.

 
Status
Not open for further replies.