Shipping Into Michigan

[rmbittner]

To me, this all just boils down to this: If you live outside of Wisconsin, there are better options than Uhle's for your tobacco needs.

 

[peckinpahhombre]

Looks like the tax on pipe tobacco you are required to pay and self-assess in Michigan is 32% of what you pay. So if you purchase $100 of pipe tobacco from an online vendor, you are required by Michigan law to file the form in the link above and remit $32.00 to the state of Michigan for your taxes.
I hope this helps.

 

[rmbittner]

I leave the details to our tax accountant.

 

[peckinpahhombre]

Actually, it looks like my example above is not quite correct. the 32% tax is only on the wholesale price, which the form indicates is treated as 50% of the retail price you pay. So in that example, you would be on the hook for $16. If you don't comply you would have to pay the $16, plus another $80 in penalties, plus interest. The notice also refers to the potential for criminal penalties potentially applying.

 

[peckinpahhombre]

To complete the discussion, here is an interesting article - looks like Michigan has been fairly active in enforcing their tobacco taxes: http://news.google.com/newspapers?nid=110&dat=20060228&id=YD1KAAAAIBAJ&sjid=yCUDAAAAIBAJ&pg=5382,4816264

 

[krizzose]

Yikes. Here's the return you're supposed to file: http://www.michigan.gov/documents/taxes/4096A_391419_7.pdf.
I read the return to require payment of 10% of the full retail price (wholesale price is assumed to be 50% of retail, and the tax is computed as wholesale price x .2).
Thus, Michigan residents have to (1) report their on-line purchases and pay sales tax on the MI-1040, and (2) file the tobacco tax return.
I'm gonna think happy thoughts.
Edit: Edited final sentence for content. Please read: Does This Sound Familiar?, L.

 

[peckinpahhombre]

krizzose - that is the wrong return - see the top of the form you linked to - it is for pre-2004. The right return is on my link above and the computation is as I set out above. The tax rate was raised from 20% to 32%.
Isn't that unusual? A tax rate going up?

 

[krizzose]

peckinpahhombre,
Word.
After being properly scolded, I just want to be clear that trying to avoid paying taxes is wrong, and I would never, ever do it. Seriously.

 

[oldman]

Bummer, & as I live Downriver, & am new to pipes, my searching, learning & wants stem from on-line goodness. I don't mind paying the taxes, but hate the hassle. And with the local B&M being bland in their tins, it makes on-line shopping so much more alluring.

 

[uberam3rica]

@oldman

Buy from pipesandcigars.com. It's where I get my tobacco, and there isn't any added price. Tins range from around 8-15 dollars.

 

[judcole]

Oldman, if you are downriver, you might want to consider popping over to A2 to check out Maison Edwards. I haven't been there in a number of years, but they do have a strong line of their own house blends, as well as some tins.

 

[oldman]

Uberam3rica & Jud thanks much. A2 is on my list for sure.