Wisconsin Sales Tax on Tobacco Starting Jan. 1, 2025

[Singularis]

I was just made aware of a Wisconsin Sales Tax on tobacco products to go into effect starting Jan. 1, 2025. It sounds like a 71% levy on the final sale price of any pipe tobacco purchased from online retailers thst aren’t based in Wisconsin. Was anyone else aware of this?

Wisconsin Legislature: 2023 Wisconsin Act 150

docs.legis.wisconsin.gov

I’ll admit that I had difficulty deciphering the bill, but reliable sources say that it means an additional 71% is tacked onto the list/sale price of pipe tobacco (but weirdly no more than an additional 50¢ per cigar). That means if your bulk tobacco is $5 an ounce, the retailer must charge you essentially $8.50 an ounce. Or a tin of GL Pease on sale for $10.88 at SPC will now be $18.50.

I know other states have regulations like this. Am I reading this one correctly? Anyone else from Wisconsin know the skinny on this new law?

 

[SBC]

Wow.
Thanks for drawing attention to this.
Looks like we have just a few months to make some big orders.

 

[Singularis]

Comparing prices on Uhle’s — what WI residents pay vs. what all other residents pay — the markup looks more like half of 71% since they’re probably collecting 71% on the wholesale cost to the retailer. That said, the right time to stock up on tobacco is today.

 

[daveinlax]

Don’t take this a gospel but I think tax act 150 is going after mail order tobacco. I think they will be collecting the 71% from out of state sellers shipping into WI.

 

[Singularis]

Don’t take this a gospel but I think tax act 150 is going after mail order tobacco. I think they will be collecting the 71% from out of state sellers shipping into WI.

Sure, but the idea is that those costs are intended to be passed on to the purchaser.

 

[sablebrush52]

I was just made aware of a Wisconsin Sales Tax on tobacco products to go into effect starting Jan. 1, 2025. It sounds like a 71% levy on the final sale price of any pipe tobacco purchased from online retailers thst aren’t based in Wisconsin. Was anyone else aware of this?

Wisconsin Legislature: 2023 Wisconsin Act 150

docs.legis.wisconsin.gov

I’ll admit that I had difficulty deciphering the bill, but reliable sources say that it means an additional 71% is tacked onto the list/sale price of pipe tobacco (but weirdly no more than an additional 50¢ per cigar). That means if your bulk tobacco is $5 an ounce, the retailer must charge you essentially $8.50 an ounce. Or a tin of GL Pease on sale for $10.88 at SPC will now be $18.50.

I know other states have regulations like this. Am I reading this one correctly? Anyone else from Wisconsin know the skinny on this new law?

It’s a 71% excise tax based on the wholesale price. Most states do this, and have for eons. It’s just that people don’t pay it on internet sales because they’re supposed to self report.
The document looks like a draft, with all the cross outs, and is ineptly worded, but it would appear to increase record keeping of sales transactions at all levels, which may require online stores to collect the excise tax just like B&Ms do, which will end part of the online advantage.
Already been done with online sales taxes, now getting done with online excise taxes.

 

[didimauw]

Stacking my cart now....

 

[HeavyLeadBelly]

Oof this is no bueno. Might have to stick up as well

 

[HeavyLeadBelly]

Ok so on this document it states:

“The excise tax is 71 percent of the actual cost to the distributor or remote retail seller, but the tax imposed on cigars cannot
exceed an amount equal to 50 cents per cigar”

So would this means it’s a tax on the cost the distributor pays and not the retail cost?

https://docs.legis.wisconsin.gov/2023/related/lcactmemo/act150.pdf

 

[Singularis]

Ok so on this document it states:

“The excise tax is 71 percent of the actual cost to the distributor or remote retail seller, but the tax imposed on cigars cannot
exceed an amount equal to 50 cents per cigar”

So would this means it’s a tax on the cost the distributor pays and not the retail cost?

https://docs.legis.wisconsin.gov/2023/related/lcactmemo/act150.pdf

That’s my reading on it. As stated above, it might be beneficial to consider the price differences at Uhle’s in Milwaukee which charges about 36% more for Wisconsin residents. Since they’re probably applying the 71% already, that’s clearly a “before retail price” application. Still and all, paying an extra 1/3 over the normal cost is definitely no bueno and calls for some stocking up. But who knows how the various online retailers will handle this.

 

[HeavyLeadBelly]

Stacking my cart now....

Just put in a big order, or at least it’s a big one for me.

 

[VDL_Piper]

Just a friendly reminder that this is exactly what happened here. They went after the supplier rather than try to tax the thousands of purchasers. This is why Smoking Pipes and the other big internet traders stopped shipping to Australia, no other reason. Once installed they ratchet it up at a pretty alarming rate because it’s easy money.

 

[JoeW]

All weekend I was looking at that Pipes & Cigars 15% off sale, debating whether I really wanted to put in a relatively large order. Then I saw this message after lunch, added a few more items, and clicked the button.

I don't even live in Wisconsin (anymore: I've lived there about 12 years at various times), but I don't think Michigan's Politburo has ever seen a tax it didn't like. The way the winds are blowing, it's time to start building up a nice stash: I would rather that my tobacco supply outlasts me, than vice-versa. As many have said, it isn't going to get any cheaper. Even my wife agreed, so thanks for the nudge!

 

[Singularis]

All weekend I was looking at that Pipes & Cigars 15% off sale, debating whether I really wanted to put in a relatively large order. Then I saw this message after lunch, added a few more items, and clicked the button.

I don't even live in Wisconsin (anymore: I've lived there about 12 years at various times), but I don't think Michigan's Politburo has ever seen a tax it didn't like. The way the winds are blowing, it's time to start building up a nice stash: I would rather that my tobacco supply outlasts me, than vice-versa. As many have said, it isn't going to get any cheaper. Even my wife agreed, so thanks for the nudge!

If Smoking Pipes and others stopped shipping to Wisconsin entirely, that would be demonstrably worse than increased prices, so let’s hope it doesn’t come to that.

 

[didimauw]

Just put in a big order, or at least it’s a big one for me.

I just hit the order button. Will probably do one more like this each month before Jan

 

[JoeW]

If Smoking Pipes and others stopped shipping to Wisconsin entirely, that would be demonstrably worse than increased prices, so let’s hope it doesn’t come to that.

I really hope it doesn’t, both for you guys’ sakes, and because Wisconsin is my contingency plan in case Michigan manages to make tobacco unavailable someday/somehow. Hope for the best, plan for the worst.

 

[Servant King]

More of the same. Should not come as a surprise to anyone.

Truthfully, in this day and age, it's amazing to me that any of us can get any leaf at all anymore, regardless of where we are.

It's equally amazing that California hasn't become like Washington. Or Utah. Or Hawaii. I plan on taking advantage of this oversight as long as it exists. I suggest all our Wisconsin members follow suit.

 

[HeavyLeadBelly]

I just hit the order button. Will probably do one more like this each month before Jan
View attachment 338255

I did that a few hours ago too!

 

[HeavyLeadBelly]

I really hope it doesn’t, both for you guys’ sakes, and because Wisconsin is my contingency plan in case Michigan manages to make tobacco unavailable someday/somehow. Hope for the best, plan for the worst.

Well if it does I guess the silver lining is I take a vacation once a year to a state like South Carolina and stock up while the rest of the year I buy some really nice pipes lol

 

[Singularis]

Well if it does I guess the silver lining is I take a vacation once a year to a state like South Carolina and stock up while the rest of the year I buy some really nice pipes lol

I feel like Smoking Pipes should pay me some kind of commission — or even just store credit — for the sales I helped them make with this post!