Thompson, CI, and C-bid have been charging sales tax since October of last year. Cigar Page also charged tax the last time I ordered a week ago. Holts has not yet charged me tax. Sent in my tax due to the state of WA last week for my pre-October orders from the first three. Not sure what the penalties are for ignoring it, but don't want to find out...
My order a couple of weeks ago from Premium (in NY) I did notice on there they had added this "Out-of-state sale, exempt from sales tax" even put 0.00% in the rate and 0.00 in the amount. So that covers NY and it's policy. My guess is different states are trying different ways to collect more money out of tobacco in general.
I said it would happen about 4 years ago and even at that time I had more cigars than I could smoke in 2 life times. Haven't bought more than a few boxes in that amount of time as it is....sales tax here in Ga are around 8 percent...ridiculous.
I would not react to this like "The sky is falling, I had to pay state tax on my cigars"
At present you cannot ship cigarettes out of state. Let that sink in, it is a tobacco product. Rumors awhile back were they were trying to do the same thing with cigars which would push the internet cigar industry into non existence. If I remember correctly it was Utah that some cigar Co's would not ship to
Some commenters above seem to believe this is a way to tax tobacco. It is not tobacco related at all. It has to do with remote seller sales tax, payable to the state in which the customer resides. The basic rule for collecting sales tax from online sales is: If a business has a physical presence, or “nexus”, in a state, you must collect applicable sales taxes from online customers in that state. Generally this "nexus" is based upon either (1) a minimum number of separate sales to customers in the state, or (2) a minimum dollar amount of sales to customers in the state. Currently each state has its own laws regarding remote seller sales tax, so it's a nightmare for businesses to comply with because they have to understand the various laws in each state. Proposed federal legislation could invalidate or require changes to these state laws in many states to make them all the same and simpler for businesses to comply.
You are correct it's not a matter of taxing JUST tobacco. Tobacco is just the FIRST target! Anytime the States or Feds do just about anything that will have an outcome with a big outcry Tobacco and Booze are almost always the first targets closely by guns and ammo (This one has a bigger defense!). Tobacco and Alcohol, in that order, are never able to make the big public lobby cries about how "You are taxing the everyday hardworking people and taking money from their wallets!". In general it comes down to them being luxury or better put "Addictive Bad Guys!". What does concern me about this is that we are the proverbial Lab Rats for how they want to work out the system. That concerns me because when they do, and they will make mistakes, they will fix it on the next round of products but generally the mistakes made on the Rat never gets fixed and they die in the lab!
Not trying to be dramatic or all end of the world the sky is falling on this by using dying lab rats and an example. However, I do believe it's true that the mistakes they make on us will never be fixed it will just make Amazon and Ebay purchases easier. Everyone had to see this coming. We all had to know that internet tax on cigars was a given and that soon ALL products would be taxed. HELL they sell CARS online now that you can just have, no joke, delivered right to your front door without ever having ever physically SEEN it! What I would ask is that you pay attention to little laws that come up both State and Fed levels and do what you can to weigh in your opinion on them when they do come up. You never know it could make a difference in the end.
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