That sucks that they came after you a year and half later. Total Bush-League nonsense. On the other hand, that is a typical bureaucracy time-frame. It wouldn't be such a big deal if it wasn't for the astronomical and ridiculous 500% tax penalty.
However, I don't think you have to go to the lengths of not ordering from NHC anymore. Someone out of state that doesn't have to worry about this kind of tax crap can simply purchase it for you and get it shipped to your address. You can then ppal the money to back to them. This way its a gift and you didn't pay jack shit for these cigars so you shouldn't have to then pay taxes on them. The taxes are someone else's responsibility and they can't make you liable for that. It's a little more hassle that way for sure, but I'm sure there are brothers on here who wouldn't mind helping you out (myself included.) NHC does have some good sticks up there from time to time and I would find it a shame to forego the few purchases I do make from there just because of this tax garbage.
I'd echo what others have said that I doubt Dan is doing anything different from most other vendors who have to report out of state tax-exempt income. I'm sure its just the horrible, horrible state of Ohio that shares that information willy-nilly about tobacco purchases. Just another reason to hate Ohio (like I needed another or something) with their slow speed limits, hatred of Michiganders, OSU, and large boring fields everywhere. Damn you, I say! No offense intended to any Ohio-ans? Ohio-ites? Ohians?