Notice of unpaid tobacco tax in NJ

[catyrpelius]

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?

 

[cosmicfolklore]

Did you make a purchase from Illinois that you remember? Or, does it seem like a fishing scam?
edit: duh, I just reread your post. Sorry. Was this for pipe tobacco?

 

[pagan]

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]

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...

 

[balkisobrains]

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.

 

[cosmicfolklore]

$6.96 verses $9.89 + gas money to buy Tylenol for the headache not paying it will cause. But yeh, that sounds really wonky.

 

[pappymac]

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]

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.

 

[cosmicfolklore]

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]

The administrative overhead costs incurred in collecting that $6.96 far outweighs any revenue the tax might ever bring in. Such stupidity.

 

[zitotczito]

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]

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]

"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.

 

[wyfbane]

Now I'm curious, as well. Which shop? I got penzance and Stonehaven from IL or IN.

 

[mikestanley]

Who could be except Iwan Ries?
Mike S.

 

[jackswilling]

I know you said this is a thing, but I don't believe it. Not a real thing, can't be. I heart taxes.

 

[papipeguy]

Just for giggles I sent an email to Iwan Ries asking if they report internet sales to a customer's home state. I'll report if I get a response.

 

[jpmcwjr]

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]

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.

 

[deathmetal]

All these taxes, and so little to show for them.
What Would George Washington Do?