Just Noticed an Excise Tax on my Orders!?
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Yeah, I recent paid it on an in-state purchase, but not on an out-of-state purchase. There is no consistency, but I suspect that it’ll be universal eventually.
Tobacco Tax Equity Act introduced in 2021 by Dick Durban was written but still waiting to be voted on by Senate and House before reaching the Pres. This is what I’ve found;
“Federal tobacco taxes have not increased for over a decade. This year, a proposal, the Tobacco Tax Equity Act, from Senator Richard Durbin (D-IL) is gaining traction. [1] The proposal would increase rates on cigarettes by 100 percent and increase the rates on all other tobacco and nicotine products to achieve parity with the rate on cigarettes.
While a doubling of the cigarette tax yields a high rate, tax equity across products results in increases on other tobacco products that are significantly higher. The rate on chewing tobacco increases more than 2,000 percent, and the rates on pipe tobacco and snuff over 1,600 percent each. Vapor products, which have not been taxed at the federal level thus far, would be taxed at a rate equal to cigarettes, but the budget punts the design of this tax to the Department of Treasury. In addition to the one-time increase, the rates would be indexed to inflation, which means they would automatically increase every year.”
taxfoundation.org
If you think it’s expensive now, get those mason jars ready!
“Federal tobacco taxes have not increased for over a decade. This year, a proposal, the Tobacco Tax Equity Act, from Senator Richard Durbin (D-IL) is gaining traction. [1] The proposal would increase rates on cigarettes by 100 percent and increase the rates on all other tobacco and nicotine products to achieve parity with the rate on cigarettes.
While a doubling of the cigarette tax yields a high rate, tax equity across products results in increases on other tobacco products that are significantly higher. The rate on chewing tobacco increases more than 2,000 percent, and the rates on pipe tobacco and snuff over 1,600 percent each. Vapor products, which have not been taxed at the federal level thus far, would be taxed at a rate equal to cigarettes, but the budget punts the design of this tax to the Department of Treasury. In addition to the one-time increase, the rates would be indexed to inflation, which means they would automatically increase every year.”
Analysis of the Federal Tobacco Tax Proposal
The Tobacco Tax Equity Act would double taxes on cigarettes and equalize rates on all other tobacco and nicotine products. Explore federal tobacco tax plan.
taxfoundation.org
Sounds like a copy of the changes here in Maine laws a couple of years ago.
You will have to pay excise tax depending on the state and the vendor. If your state has an excise tax and you order within the state, then it will be collected. If you order from out of state and the vendor has surpassed the necessary sales volume for our state, then they will collect it. If not, then you are supposed to remit it to your state accordingly.
Looks like your state of NC has a 12.8% of wholesale price excise tax.
igentax.com
Looks like your state of NC has a 12.8% of wholesale price excise tax.
Tobacco & Cigarette State Excise Tax for 2024
Current tobacco and cigarette state excise tax rates. Plus, find out which state has the highest and lowest tax rate.
igentax.com
Smoking pipes was the first to charge me excise tax somewhere in the last year or two. In the last couple of months most of the major retailers have followed suit.
Another reason to cellar....or panic buy. However you choose to perceive it LOL.
Yep....struck Virginia not long ago as well.
Being the frugal chap that I am my purchases have dropped off considerably. Thankfully my cellar in its current state will outlive me.
Being the frugal chap that I am my purchases have dropped off considerably. Thankfully my cellar in its current state will outlive me.
The worst part though is when you want to buy new blends regardless of your cellar stock. So far lucky in NJ regarding this
Thanks to Mel Hancock and the Hancock Amendment Missouri has the lowest cigarette excise taxes in the United States. They are 17 cents a pack for cigarettes and any other tobacco product is taxed at 10% of the manufacturer’s invoice before discounts and rebates.
I can walk in a cheap booze and smokes store in Humansville and RYO grade pipe tobacco is ten bucks a pound.
Half and Half tobacco is $3.49 a package and I stock up, when I’m there.
There is the same sales tax rate of 7.95% as any other retail sale.
Now, if I order tobacco online there’s an excise tax of 10% of whatever the seller paid, but as of yet no sales tax.
How’s that fair to the man who owns the smoke shop in Humansville?
Governor Parson gets the excise tax but the out of state seller skips the sales tax.
If Flora Farms is not the largest wholesale cultivator of medical marijuana on the planet it has to be one of the largest. The operation has three huge grow barns and a brand new power substation to provide electricity.
This fall Missouri votes on legalized recreational cannabis and it’s expected to pass overwhelmingly.
In due time, Missouri will have the most tax friendly laws for legally selling alcohol, tobacco, and weed in the civilized world.
What makes a pipe smoker angry is a business opportunity for the merchants of things your mother told you not to do.
I can walk in a cheap booze and smokes store in Humansville and RYO grade pipe tobacco is ten bucks a pound.
Half and Half tobacco is $3.49 a package and I stock up, when I’m there.
There is the same sales tax rate of 7.95% as any other retail sale.
Now, if I order tobacco online there’s an excise tax of 10% of whatever the seller paid, but as of yet no sales tax.
How’s that fair to the man who owns the smoke shop in Humansville?
Governor Parson gets the excise tax but the out of state seller skips the sales tax.
If Flora Farms is not the largest wholesale cultivator of medical marijuana on the planet it has to be one of the largest. The operation has three huge grow barns and a brand new power substation to provide electricity.
This fall Missouri votes on legalized recreational cannabis and it’s expected to pass overwhelmingly.
In due time, Missouri will have the most tax friendly laws for legally selling alcohol, tobacco, and weed in the civilized world.
What makes a pipe smoker angry is a business opportunity for the merchants of things your mother told you not to do.
It's enlightening to back calculate wholesale prices on tobacco I buy, using my state's excise tax. A can of SRW apparently wholesales for $6. Iwan Ries sells it for $32.35; the MSRP, per SP, is $37.46 (on sale there for $22.29). I just got two cans on cigarbid for $8 each.
Takeaway: it pays to shop, and markup on pipe tobacco is remarkably high.
I live in Michigan, excise tax is 32% wholesale price.
Takeaway: it pays to shop, and markup on pipe tobacco is remarkably high.
I live in Michigan, excise tax is 32% wholesale price.
Worst is that a B&M can’t move there and just open a tobacco/cigar shop since they’ve basically outlawed new stores that you can smoke in. If you don’t want smokers in a store don’t go to a cigar/pipe B&M. I don’t drink but I’m not offended by ordering food in a bar. Crazy!Thanks to Mel Hancock and the Hancock Amendment Missouri has the lowest cigarette excise taxes in the United States. They are 17 cents a pack for cigarettes and any other tobacco product is taxed at 10% of the manufacturer’s invoice before discounts and rebates.
I can walk in a cheap booze and smokes store in Humansville and RYO grade pipe tobacco is ten bucks a pound.
Half and Half tobacco is $3.49 a package and I stock up, when I’m there.
There is the same sales tax rate of 7.95% as any other retail sale.
Now, if I order tobacco online there’s an excise tax of 10% of whatever the seller paid, but as of yet no sales tax.
How’s that fair to the man who owns the smoke shop in Humansville?
Governor Parson gets the excise tax but the out of state seller skips the sales tax.
If Flora Farms is not the largest wholesale cultivator of medical marijuana on the planet it has to be one of the largest. The operation has three huge grow barns and a brand new power substation to provide electricity.
This fall Missouri votes on legalized recreational cannabis and it’s expected to pass overwhelmingly.
In due time, Missouri will have the most tax friendly laws for legally selling alcohol, tobacco, and weed in the civilized world.
What makes a pipe smoker angry is a business opportunity for the merchants of things your mother told you not to do.
Unless your food is being misted over the entire interior of the restaurant, save for a few chunks you imbibe, there is no equivalency in this example.
I love my pipes and tobaccos as much as anyone, but I don't miss the stink of cigarettes in a restaurant.
Obviously you missed the point. You can’t open a new B&M that you can enjoy a cigar or pipe in. Under the Clean Air Act of 2008 it must be a “private club” and be established for a minimum of 10 years. The point wasn’t about food.
Seems standard with online retailers now. Iwan Ries was the first to charge tax maybe five years ago, the SP about three years ago, and PC about a year ago. I'm not sure how the tax money is handed around between states, but I think you don't get off tax-free anymore just because you're buying online.
As for smoking in restaurants, I'd rather sacrifice that and do my smoking elsewhere after a meal than have the strong smell of someone else's tobacco wafted over my meal, modest or expensive. I don't want a Marlboro cigarette with my hamburger nor someone else's cigar with my steak.
The French are big smokers but very strict in the sense that if you light up between courses, some waiters will end your meal. Smoking comes after dessert and any after dinner drinks. No exceptions. Never mind, the food is always worth it. When in France.
As for smoking in restaurants, I'd rather sacrifice that and do my smoking elsewhere after a meal than have the strong smell of someone else's tobacco wafted over my meal, modest or expensive. I don't want a Marlboro cigarette with my hamburger nor someone else's cigar with my steak.
The French are big smokers but very strict in the sense that if you light up between courses, some waiters will end your meal. Smoking comes after dessert and any after dinner drinks. No exceptions. Never mind, the food is always worth it. When in France.
I was surprised when a guy that, um, lives on my street just got an order from Payless and wasn't charged taxes on it. I understand online vendors don't charge until they do a threshold dollar of sales to that state. Now he has to pay it himself to the state. I'm absolutely sure he will. I think.
Obviously you missed your point as well as mine. Your example was what was flawed, not anything to do with the laws about smoking rooms in tobacconist's shops.
Yes, we all know that he is supposed to, but the difficulty with this type of excise tax is that the consumer has know idea of the wholesale price so it's not really possible to accurately calculate the amount due to even pay it.
I wonder if any states have exceptions for an outdoor covered smoking area set apart from the main store.
