Michigan Residents Take Notice

[krizzose]

As most you know, for many years now Michigan residents have been obligated to file an excise tax return and pay the tobacco excise tax on online purchases of tobacco where that tax was not collected by the retailer. As far as I knew until now, none of them collected it. This was just posted on the Michigan Pipe Smokers Facebook page (the poster is just incorrect about this being a “new pipe tobacco tax”; it’s just the old tobacco excise tax):

 

[warren]

Now he's relieved of the paperwork and paying the tax himself. Seems such would be a relief. I'm pretty sure he wasn't dodging his responsibility in the past. Or . . . was he?

 

[krizzose]

Now he's relieved of the paperwork and paying the tax himself. Seems such would be a relief. I'm pretty sure he wasn't dodging his responsibility in the past. Or . . . was he?

From his statement that the tax is new, I think “dodging” is precluded as it implies a deliberate action. I think he just had no clue the excise tax existed at all or that purchasers are obligated to file a return and pay the tax. He’s clearly not a member of this forum (or is a recent member), as this subject had its own thread several years ago. The wise choice would be to start filing returns and paying up.

 

[briarbuck]

Now he's relieved of the paperwork and paying the tax himself. Seems such would be a relief. I'm pretty sure he wasn't dodging his responsibility in the past. Or . . . was he?

Nope. There's new software that allows online vendors to pay all the various States and Counties that are putting their dirty hands in the cookie jar. Bunch of flippin thieves.

 

[warren]

From his statement that the tax is new

In his opening line the OP acknowledges that requirement has been around for "years." It appears the "complainer" was unaware of the tax though. Ignorance is bliss until knowledge hits you on the head with a sledgehammer.

Bunch of flippin thieves.

The vendors?

The vendors aren't responsible for paying the tax. In most cases it's the purchaser, end user.

 

[timt]

It’s about time they make paying more taxes easier!

 

[cigrmaster]

In his opening line the OP acknowledges that requirement has been around for "years." It appears the "complainer" was unaware of the tax though. Ignorance is bliss until knowledge hits you on the head with a sledgehammer.


The vendors?

The vendors aren't responsible for paying the tax. In most cases it's the purchaser, end user.

Warren, do you think the states are going to be looking to claw back a ton of dough? What right does the FDA have to look at records from 10 years ago and then even think they could ever claw back money from me. I maybe be lucky as shit as back in the day I gave Pipesandcigars the bulk of my business and they lost all my records when Cigars International took over.

 

[sablebrush52]

Only 30%? Wow! Cheap rate!

 

[hoosierpipeguy]

Just a guess but perhaps the smaller online retailers aren’t charging the tax yet.

 

[warren]

do you think the states are going to be looking to claw back a ton of dough? What right does the FDA have to look at records from 10 years ago and then even think they could ever claw back money from me.

No idea as to either. You'll need toe query an expert. Tax law is endlessly interesting/confusing. Some tax law isn't bound by a time limitation. So, in your case, only time will tell.

 

[briarbuck]

Warren, do you think the states are going to be looking to claw back a ton of dough? What right does the FDA have to look at records from 10 years ago and then even think they could ever claw back money from me. I maybe be lucky as shit as back in the day I gave Pipesandcigars the bulk of my business and they lost all my records when Cigars International took over.

Yes, taxing the internet is the Municipal version of the Gold Rush. It gives aggressive States the ability to tax companies outside their state to collect revenue.

 

[SmokeRings79]

No idea as to either. You'll need toe query an expert. Tax law is endlessly interesting/confusing. Some tax law isn't bound by a time limitation. So, in your case, only time will tell.

Mind you that I am not a native English speaker, but I think you are using the word "interesting" incorrectly.

 

[warren]

"interesting" incorrectly.

In what way? I find tax laws, constantly changing and morphing to include some, exclude others, etc. to be extremely interesting and at times fascinating. Not sure what you are hinting at.

 

[SmokeRings79]

In what way? I find tax laws, constantly changing and morphing to include some, exclude others, etc. to be extremely interesting and at times fascinating. Not sure what you are hinting at.

...maybe the concept of taxes is is REALLY different from what you guhs have.

 

[Michigan_Bill]

The current (January 2022) Michigan Tobacco Tax Guide says, "NOTE: Tax under the TPTA is generally precollected and remitted by Wholesalers and Unclassified Acquirers. Persons acting solely as retailers do not need to be licensed and do not file tobacco tax returns or remit tobacco tax."

However this is confusing because it also says, "The Michigan TOBACCO PRODUCTS TAX ACT (TPTA) imposes an excise tax on TOBACCO PRODUCTS, which is levied on the consumer of the tobacco products. "

Link to Tax Handbook

Always something! I had no idea, myself.

 

[FurCoat]

It’s about time they make paying more taxes easier!

Good one ?

 

[captpat]

Yesterday when I place an online order for tobacco I noticed the invoice included NC Tobacco tax and a county tobacco tax. Never had that happen before. Maybe the phenomenon is not confined to Michigan.

 

[The Amish Tyrant]

Public Service Announcement:

I just made my first online purchase this year.

Smokingpipes.com is now charging a 32% excise tax on cigars and pipe tobacco.

The tax is on the wholesale price and called at $0.50 per cigar.

I'm guessing other major retailers are or will be doing the same.

 

[Grangerous]

It has begun. In the tobaccolypse the unwashed masses will be smoking granger and condor, the aristocracy will suffer little while the unclean will be be sipping mixture 79 from dirty coconuts. Oh, the humanity.

 

[sablebrush52]

Don't you miss the days when on line purchases weren't subject to tax? I still paid mine because of my account with the BOE and my concern that someday the ax would fall and might even reach back to purchases from previous years.