Wisconsin Sales Tax on Tobacco Starting Jan. 1, 2025

[mingc]

As I read it, this Wisconsin law requires out of Wisconsin retailers to collect Wisconsin excise tax (71% of the "actual cost" to the retailer, presumably the retailer's wholesale cost). Since 2018, the US Supreme Court has allowed states to require out-of-state sellers to collect sales tax for goods sold to customers in that state. Most states don't require it unless the seller sells more than a threshold amount to customers in that state. The threshold amount is up to each state and I think it's usually not less than $100,000. However, excise tax (which is "sin tax" for stuff like alcohol and tobacco) is not the same as sales tax. It's not clear to me whether states can collect excise tax from out of state sellers. Are there any tax accountants or lawyers here who know?

 

[AcesAndEights]

Colorado started tacking on a 50% excise tax at the start of this year. I put in several bigger orders before it went into effect. Luckily, I’ve got family just up the road in Wyoming. Any purchases I make now get shipped there. Then I take a little roadie to go visit and smoke it all while I’m there. No smuggling, scout’s honor.

 

[smudgersmissingleg]

Cellaring is just common sense. If you ever give up smoking a pipe you'll almost certainly be able to sell what you bought for a lot more than you paid for it.

Taxes go up and up, availability of certain tobaccos can be patchy, blends change or disappear altogether.

Cellar

 

[didimauw]

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

That's a very good point. I love that area anyways....

 

[hakchuma]

I wonder how these excise taxes might be effecting pipe makers. For example I'll get ready to check out a large order, take a look at the large amount of excise tax, I remind myself I'm shopping for tobacco not pipes and since I have to pay extra for the tobacco I just return to my cart remove the pipe from the cart, pay my check out and move on with my life minus a new pipe.

 

[Briar Lee]

Missouri has the lowest sin taxes in the civilized world, whether on booze, tobacco or weed.

The Wisconsin 71% tax on loose tobacco and 100% tax on moist snuff has been around for decades.




Do your sinning in Missouri, folks.

I can buy two pounds of Bouy Gold for $25 tax paid and smoke an ounce a day for a month. The tax here is 10% of list price to the retailer.

Since the wholesale on Bouy is likely not ten dollars it would add seven dollars a pound in Wisconsin. And they’d have the same per cent markup, so you might pay $50 for two pounds of Buoy in Wisconsin.

My mother told me not to smoke.

But if I’d listened I’d have blown the money on something else, you know?

 

[VDL_Piper]

I say get stuck into buying and selling contraband, civil disobedience is becoming the new cool and I'm already balls deep in graft and tobacco corruption here in Oz.

 

[BayouGhost]

This is why I don’t understand some of the confusion over why some of us have “cellered” tens of pounds of tobacco. In my case, the cellar is on the top shelf of the closet as worms tend to drown if they dig more than an inch below ground in these environs.

 

[JoeW]

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

That's certainly a positive way to see it! I think I'll stop at Boswell's and TobaccoPipes on my way there, too!

 

[kcghost]

Sounds like you boys have gotten in an uproar over this tax increase. Sounds like you need to vote all the bastards out.

 

[Briar Lee]

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?

I’ve read this and Wisconsin has imposed that 71% loose tobacco tax since January 1, 2008, for over 15 years.

But until January 1 2025 the tax is not imposed on out of state sellers, only those who have a store in Wisconsin.

Interestingly, if you have a tobacco store on an Indian reservation in Wisconsin the state refunds 100% of the tax for sales to enrolled Indians and 50% of sales to non Indians.

Apparently the tobacco sellers in the state, and likely the Indian tribes thd loudest, let out whoops until the legislature equalized the taxes.

What amazes me is Wisconsin taxes beer $2 a barrel. I’d think the brewers in Milwaukee would have enough influence to get a subsidy.

Sin taxes are an important source of revenue in Wisconsin.

 

[OzPiper]

I'm already balls deep in graft and tobacco corruption here in Oz.

Information PLEASE

When the Oz Government implemented the steep increase in tobacco excise, I didn’t read the fine print.
The crunch came when orders were impounded and retailers like SmokingPipes and those in the EU and UK stopped sending to Oz.

Thank goodness I only average 4-5 bowls per week, so I have enough in reserve for at least 5-6 years.

I will have to resort to using mules soon.

 

[Singularis]

Colorado started tacking on a 50% excise tax at the start of this year. I put in several bigger orders before it went into effect. Luckily, I’ve got family just up the road in Wyoming. Any purchases I make now get shipped there. Then I take a little roadie to go visit and smoke it all while I’m there. No smuggling, scout’s honor.

I put in a Colorado address and went to checkout to see what SPC does:


So basically, we’ll see the same thing here in WI starting 2025, except that the sin tax will be even higher (at least 36%). So if I make this order here today, I’ll be saving $66, no foolin’.

Heads up @SmokingMedic and @Home Brewing Piper, in case you’ve missed this thread until now.

 

[HeavyLeadBelly]

I put in a Colorado address and went to checkout to see what SPC does:

View attachment 338463
So basically, we’ll see the same thing here in WI starting 2025, except that the sin tax will be even higher (at least 36%). So if I make this order here today, I’ll be saving $66, no foolin’.

Heads up @SmokingMedic and @Home Brewing Piper, in case you’ve missed this thread until now.

Good info. Did you put in the address as the billing address too?

 

[VDL_Piper]

I think the most concerning thing is the coordination between retailer and the Govt and the latter has the likes of Smoking Pipes and Erstevals right where they want them. I will watch this space closely now in the U.S. because once taxation reaches the magic tipping point all the tobacco suppliers that process and blend will start to fold. Good bye C & D and G. L. Pease et al and yes I can hear you all laughing at the crazy Aussie.

 

[Sig]

Wow, NY is the exact opposite.
If I order from a NY based seller, like Pipes and Cigars, they add the 77% tax.
If I order from out of state, no NY taxes taken out.

 

[HeavyLeadBelly]

I think the most concerning thing is the coordination between retailer and the Govt and the latter has the likes of Smoking Pipes and Erstevals right where they want them. I will watch this space closely now in the U.S. because once taxation reaches the magic tipping point all the tobacco suppliers that process and blend will start to fold. Good bye C & D and G. L. Pease et al and yes I can hear you all laughing at the crazy Aussie.

That’s why if you think you’re gonna be in this hobby for the long haul you cellar as much as you can now for years down the road. I think by the end of the year I’ll have close to 40lbs. The tobaccopolypse is inevitable so be prepared.

And if it doesn’t come, chances are you can sell your hoard and make some money.

 

[VDL_Piper]

That’s why if you think you’re gonna be in this hobby for the long haul you cellar as much as you can now for years down the road. I think by the end of the year I’ll have close to 40lbs. The tobaccopolypse is inevitable so be prepared.

And if it doesn’t come, chances are you can sell your hoard and make some money.

Well nearly 40 years and still going so I've served my apprenticeship. My cellar grows monthly, have no doubt!

 

[OzPiper]

I think the most concerning thing is the coordination between retailer and the Govt and the latter has the likes of Smoking Pipes and Erstevals right where they want them. I will watch this space closely now in the U.S. because once taxation reaches the magic tipping point all the tobacco suppliers that process and blend will start to fold. Good bye C & D and G. L. Pease et al and yes I can hear you all laughing at the crazy Aussie.

Not crazy at all !

I do not know of any tobacconist in Sydney, Oz selling pipe tobacco.
Cigarettes, yes. But increasingly they are vape joints and selling equipment for smoking substances that are NOT tobacco.

 

[Pipke]

Good grief! Those are some mighty taxes.

In Ohio my Smoking Pipes order had 6.7% sales tax and 5.9% excise taxes.