Time to Mega PAD
- Thread starter mustanggt
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What I find interesting about this as a Canadian is that if this passes, I may be able to buy pipe tobacco from US vendors cheaper than my fellow pipesters in the US can buy it. How strange is that?
This was obviously coming when they passed the PACT act...forcing cigarette and smokeless shops to charge local sales tax and ship private carrier. A few of us in the smokeless community tried to sound the clarion call...but were mostly shrugged off and/or ignored. States are spending so far beyond their means they need to find ways of increasing revenue. This is a easy way to do it. Plus taxes on tobacco is worse. They will require state tobacco taxes in addition to sales tax. In Ohio it's not to bad. 17% + sales tax. But Texas? Maryland? 75-90% tax. Our hobby is about to get insanely expensive.
It will be interesting to see how this works out in practice. The way it works in Europe, which is a single market if not a single country, is that tax and duty has to be paid in the country of sale. As there is a big difference in the rates of duty, it means it is worth bringing back tobacco to the UK from other EU countries. There is no set limit on how much you can bring back, but its left to the customs officials to decide if it is being brought in for personal use or sale. If they suspect you may sell what you bring back they can seize it.
Currently there is a grey area over online purchases. The authorities claim that it is not covered by the above rules as they are for people who actually travel abroad. The sellers are pushing for this to change arguing that buying online or in person makes no difference.
The downside of all of that is the huge increase in counterfeit cigarettes and tobacco appearing on the market.
Currently there is a grey area over online purchases. The authorities claim that it is not covered by the above rules as they are for people who actually travel abroad. The sellers are pushing for this to change arguing that buying online or in person makes no difference.
The downside of all of that is the huge increase in counterfeit cigarettes and tobacco appearing on the market.
The era of 9.00 tins will soon be over, make way for 25.00 plus tins. I think we will also see many blends get discontinued as sales plummet. Bulks will become more poplar do to the increase in price and tins are going to sit on the shelves.
This is a real dilemma for me, being a B & M business. On the one hand, it just seems unfair that I get penalized for having to add in sales tax by law (trust me, NY State does not take tax evasion lightly) when the same products can be purchased online not only cheaper but without tax and often free shipping. They have absolutely no overhead (comparatively speaking) and their margins can be very thin because there are very few expenses, again, comparatively speaking, e.g. rent, employees, insurance, real estate taxes, heating, cooling, fines for sanitation, and on and on. NYC is particularly adept at finding the most ridiculous ancient laws such as the size of your awning on your store, which they pull out periodically to fine you with.
Yes, of course, we give service and for many, especially the older folk (age as well as attitude) they just don't care.
But for the upcoming young, this is a serious issue.
Don't get me wrong, I enjoy not paying 100 per cent sales tax on tobacco. I buy from our online advertisers as much as anyone else. Still, especially on tobacco sales, it is hurtful to legitimate brick and mortar stores who have no choice and cannot possibly compete, except for the good will of the public, which as we know, is disappearing rapidly.
I have no answer, but I think its good for us to see the other side.
Allan
Yes, of course, we give service and for many, especially the older folk (age as well as attitude) they just don't care.
But for the upcoming young, this is a serious issue.
Don't get me wrong, I enjoy not paying 100 per cent sales tax on tobacco. I buy from our online advertisers as much as anyone else. Still, especially on tobacco sales, it is hurtful to legitimate brick and mortar stores who have no choice and cannot possibly compete, except for the good will of the public, which as we know, is disappearing rapidly.
I have no answer, but I think its good for us to see the other side.
Allan
You guys are all bastards. Every time there's a thread like this you have me online ordering another 10 lbs.
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