State Taxes for Online Retailers
- Thread starter strave19
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It's pretty steep over here. I think we're still some way in front. It averages around 18-20 sterling for a 50g tin.( I believe that's around 23-26 dollars)Seems like WA and NY State Tobacco taxes are pretty high even from european point of view
What is a rough price for a 50g tin there?
Local excise taxes does cause people to travel out of state to purchase in person if taxes at the point of purchase are lower. For online purchases the buyer is still usually required to pay taxes for their own home state if they aren't withheld by the vendor. For example, Ohio has a way to remit extra sales/use tax with the annual income tax filing, although the tobacco excise tax is trickier since it is still relatively new.
Well, I agree with sentiment, but you also have to keep in mind that a B&M has 200% more overhead, depending on the location. An online retailer just have to have a warehouse, whereas a B&M has to have a more expensive retail space (which has to reorder their space for display and comfort) and more expensive utilities. When I had the store, electric, water, all utilities were 300x's as expensive than regular utilities. So, comparing a wholesaler like Laudsi to a Tinderbox style store isn't exactly fair.
No I’m saying it’s the same store. Their website has the cheap out of state prices. In person, twice the price.
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It looks like it is state-by-state but in most cases they are charging the local excise taxes to in-state customers *or* filing the information for in-state purchases with the state and telling customers that they need to true-up during tax season or risk getting dinged by the state (probably pretty unlikely for $10's or $100's unpaid in most cases). So that is the rough answer to my question.
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Usually there is a "nexus" (typically $100,000 or 200 transactions or some other significant linkage to the state such as a warehouse locations, etc.) that needs to reached before a particular vendor was required to withhold and remit sales tax to a state. Otherwise, the burden is on the purchaser to report the out of state purchases via yearly income tax filing and pay the necessary sales tax accordingly. This is usually also true if the state has additional tobacco-related excise taxes. This is how it works for Ohio.
It's not a tobacco tax issue. It's ALL internet sales. If you go over 100k or a few thousand transactions, the State you sell in will want their pound of flesh..
It won't stop. I had the State of Wisconsin do a sales audit on me for just attending a conference. They said that being an an expo is doing business inside their state and opens me up to their taxes. Freeken thieves.
Taxes and death are hard to avoid. Colorado smokers better cellar before the new year. Much higher taxes go into effect on Jan. 1st.
I better give you an actual retailing price for a 1,75oz pouches of Amphora Red full at newsagent/supermarkets US $ of 27 Tins at special tobacconist shops are about the same or a tad more, Prices in Denmark /Sweden are roughly 5% less to ours but note not long ago there were huge tax increase for tobacco products in Denmark
Oh, that's a surprise, not really that much difference.
I'm not sure what you can get in a newsagents or supermarket here as I haven't found any that sell pipe tobacco as of yet.
I’ve noticed on some blends it’s actually cheaper for me to buy local my grocery store carries amphora original for like 5 something. But before I knew that I mail ordered a pouch and it’s like 7 dollars. I’ve noticed ebay also collecting sales tax. Never been charged exise tax as far as I know. (we’ll probably from where the seller was located) but yes on sales tax.
I feel sorry for everyone in Florida. In town for the week and stopped in a local tobacconist just to see if They had anything unique. That excise tax is no joke, 48.00 for a 2oz tin of Mississippi River. The owner said pipe tobacco and pipe sales are dismal since the tax was implemented. He only keeps a very limited supply for tourists, most of his regular pipe smokers are gone; probably buying online. Thankfully I brought enough with me.
I've yet to see an online seller who collects states' excise taxes. They collect sales taxes. You are responsible to pay your state's excise tax yourself. An excise tax is not the same thing as either a sales tax or a user tax. Contact your state's tax board to find out what your excise tax is. If it's based on a percentage of wholesale you can figure that wholesale is on average 50% of retail, though that can vary with different types of products.
I'm guessing that there's a total sales threshold amount above which an out of state retailer will have to start collecting excise and sales taxes for Ohio. This means you are ordering way too much and screwing it up for all your fellow pipe smokers in Ohio! ?
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