Products Tax/Consumer Use notice...
- Thread starter veeref
- Start date
Herfin' Harg
BoM March 2012
The use tax is legit, and that can happen - I'm wondering about the penalties.
What are they alleging? That you should have claimed it as income and accounted for it on your state tax bill?
EDIT: Also, sounds like another good reason to start ordering CC's.
What are they alleging? That you should have claimed it as income and accounted for it on your state tax bill?
EDIT: Also, sounds like another good reason to start ordering CC's.
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Was just getting on to post that. Lets see them get the tax money from the CC's!
My memory sux, but I seem to recall MN as one of the states with a history of doing this in the past. Also think I've heard of NJ and MO doing the same. Any state that thinks that cost of doing this would be less than the (lost?) revenue gained might well attempt it also. Pretty sure that we're all technically responsible for paying state tax on out-of-state cigar purchases. (And most likely nearly every other internet/mail order purchase.)
Not saying I think its a good idea, but won't be too surprised if it is only the beginning.
Attached is a copy of the letter I received.
I spoke with the retailer in question, and he stated this was the first time he's heard of anyone in Colorado receiving a tax notice like this. That being said, there was nothing he said he could do to help me out. He did state that he was required to submit all out of state purchases to the State of Ohio. You guys can figure out which retailer this is I'm sure. That being said, I'm personally never going to purchase anything from this business again. I can live without the Tatuaje shop exclusives. Paying my state 40% of all my online purchases is not worth it for me. Possibly paying 500% penalty on anything I might have missed is definitely not worth it for me.
Its also interesting to note the taxable value reported to OH/CO by the retailer was half of the purchase price (just saying).
Here's what I would pay if I missed a payment on a $125 bundle of Drew Estate Ba1t F1sh for example.
$50/tax
$250/penalty
$300 on top of the $125 I paid for the cigars. $425 for a bundle of Ba1t F1sh. No thank you.
I'm not here to point fingers at anyone, and like you guys mentioned, the State of Colorado is just looking for tax revenue. You can't separate a bureaucrat from his money, and this is just another example. That being said, I've bought cigars from many online retailers from several states, and this is the first time this has happened, so either other states don't have this requirement, or this retailer has to work under different circumstances.
I spoke with the retailer in question, and he stated this was the first time he's heard of anyone in Colorado receiving a tax notice like this. That being said, there was nothing he said he could do to help me out. He did state that he was required to submit all out of state purchases to the State of Ohio. You guys can figure out which retailer this is I'm sure. That being said, I'm personally never going to purchase anything from this business again. I can live without the Tatuaje shop exclusives. Paying my state 40% of all my online purchases is not worth it for me. Possibly paying 500% penalty on anything I might have missed is definitely not worth it for me.
Its also interesting to note the taxable value reported to OH/CO by the retailer was half of the purchase price (just saying).
Here's what I would pay if I missed a payment on a $125 bundle of Drew Estate Ba1t F1sh for example.
$50/tax
$250/penalty
$300 on top of the $125 I paid for the cigars. $425 for a bundle of Ba1t F1sh. No thank you.
I'm not here to point fingers at anyone, and like you guys mentioned, the State of Colorado is just looking for tax revenue. You can't separate a bureaucrat from his money, and this is just another example. That being said, I've bought cigars from many online retailers from several states, and this is the first time this has happened, so either other states don't have this requirement, or this retailer has to work under different circumstances.
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Thanks for the follow up and the details.
I have no source or first hand knowledge, so hopefully someone can validate...but, I've heard that someone living in a state like yours would be relatively safe purchasing from a vendor in a state without a state tobacco sales tax (like FLA?) Your mention that your vendor provided the info to THEIR state may support that.
I have no source or first hand knowledge, so hopefully someone can validate...but, I've heard that someone living in a state like yours would be relatively safe purchasing from a vendor in a state without a state tobacco sales tax (like FLA?) Your mention that your vendor provided the info to THEIR state may support that.
Craig Mac
BoM 4/10 7/11 12/14
If FL reported it then there would still be taxable value in CO. At this time there are states that are not required to submit customer information regarding purchases. I imagine this will change soon and all states will be required collect appropriate taxes at the time of purchase.
Yeah, I realized that after I received my letter and some more digging online.
Agree, Craig. What I was trying to say, albeit awkwardly, was not that you'd be on any firmer legal ground -- just that there'd be less likely of getting hit with a 'letter' -- if FL venders don't have to report to FL.....then state of CO wouldn't be getting a narc list from FL
gibbleguts
BoM april 09
Yeah if a state doesn't have it's own tobacco tax there would be no reason to report to their state what was shipped out of state as they aren't paying tax on it anyways. I was thinking the same thing with NH as well.
Craig Mac
BoM 4/10 7/11 12/14
Unless they had an agreement with the state they are sending to so THAT state could collect taxes from it's residents.
AlohaStyle
BoM Sept '12 & Aug '13
Yeah I know this has happened to other BOTLs before from Dan, can't remember what state they lived in though. But businesses are supposed to collect taxes and in Ohio, if they are not collecting taxes on sales they have to show proof of where those sales went as to why they are being exempt from the sales tax. Dan is just following protocol and the laws in that state. So as much as it sucks, I don't see why any blame should be put on him. Do you really expect him to hide it and do something illegal?
Kind of same situation here in WA when the Tatuaje SODO's were released. The B&M couldn't legally ship the cigars out of state so I helped out. There is paperwork and audit trails if the state really wants to dig in so he didn't want to do anything illegal.
Sorry you got dinged by CO brother... that really does suck.
Kind of same situation here in WA when the Tatuaje SODO's were released. The B&M couldn't legally ship the cigars out of state so I helped out. There is paperwork and audit trails if the state really wants to dig in so he didn't want to do anything illegal.
Sorry you got dinged by CO brother... that really does suck.
I do not agree with that statement.
AlohaStyle
BoM Sept '12 & Aug '13
Please elaborate as to why... I definitely don't pretend to be a lawyer or know Ohio laws, but that seems logical to me. Sure some businesses can "skirt" the laws and not report everything, but that's a choice they have to live with, on both sides.
javajunkie
BoM July '12
not speaking for the whole issue, but i know retailers in all fields frequently get audited for sales tax. tax exemp sales, for purchase resale for example, are logged for such purposes. gonna have to vote that the buckeye state sucks, from what i have seen here.
What it probably boils down to is, OH is more on top of sending this information to other states than the other states we order from. I doubt it's any different for any state we order our cigars from, it all depends on what that state does with the info after it has been given. With the amount of money FL receives from the tobacco industry, they may thumb their noses at other states, just to be on the safe side. Even though we aren't paying cigar taxes on FL online purchases, those companies are still tax revenues for the state of FL, and I doubt they want to see that go away.
OH on the other hand, probably couldn't care less what happens to their tobacco industry, and freely screw us all. I agree, it's not Dan's fault, he's a good guy that would do what he could to help us out, he's just in the wrong state. With that being said, I won't be purchasing anymore from his site, sadly, because I'm not interested in having to do the math on my states 95%/$1 per stick tax.
Everybody has to make their own personal choice about how to go about the info we've now been given.