In most states, people ordering online don't pay the excise tax if the company isn't in your state. It's a reason why online purchases are often cheaper than your local B&M (and also a reason why a B&M may complain about online ordering because it's tough to compete).
If you currently buy a 2oz tin of Union Square of Smoking Pipes for $12.96 and you only pay the state sales tax on checkout, you are not paying the 70% Hawaii tobacco excise tax compared to if you bought the same 2oz tin at a B&M locally who has to charge it. The excise tax is an additional, special tax on top of the sales tax specifically for the type of tobacco you are purchasing. Every state is different on what they charge for the different types of tobacco.
I spoke with the Tax Department again, because I didn’t consider the 70% GE, which already exists for a local business.Correct, so if that vendor made the change, I'd expect an additional line item for the excise tax for an additional $38.02.
When I checkout from SP or TP my state excise tax gets automatically added. It’s been like that for maybe a year or so. I don’t like the tax but so long as it’s in place I’ll pay it rather than circumvent it.
Another revolution you say? SC has a 5% excise tax but if we all move there we could not only vote that to become 0%, we could also have other industries taxed higher and subsidize tobacco farmers. And Sykes will be the GEOTUS of Tobaccolina (formerly SC). We would also have flying cars and monkey butlers.