NJ tax audit for cigars?
- Thread starter jfettlol
- Start date
Mr. McSquirelly
Joe Bananas
I'm waiting for the day California comes after me too! Because of the insane 95% tobacco tax in the state, I'm forced to buy from Arizona and Florida retailers who offer me free shipping. It's only a matter of time before some sharp law-school intern at State Capitol in Sactown figures out that scam and reports it to the same department out here.
Mr. McSquirelly
Joe Bananas
I would definitely call retailer. They may have been recently audited, and IRS sent notifications to state-level departments. Tell them you are pissed and will never order from them again. I just cannot understand how interstate-commerce and taxation departments alerted each other. Maybe it's your credit card company or bank. But someone needs to be screamed at! LOL!
Definitely scream. If the gubmint had a court order so be it but if they are just handing out customer records for fun there is no chance I'd order from them again.
I really hope this isn't a sign of more to come (from Chicago/Ill.) Since I did grab a box of jackals from tqc, and made another purchase at UpDown (I hope you're reading this, Gubna...) The ironic part was I was playing a "mule" to save someone in Chi. from the taxes to begin with. Lol!
ChuckMejia
The General
Order from smallbatch
Mr. McSquirelly
Joe Bananas
Used them many times. Absolutely great retailer. Plus 10% code. I wonder how they avoid 95% state tax? But they are def in my rotation.
New Havana Cigars also will report like this, thats why I dont buy from them anymore. I know it sucks Joe, but be thankful you dont live in any of the states that impose additional penalties. I know Colorado is very punitive and if they find out they really ram you. Apparently you can smoke all the weed you want but they dont want your dangerous tobacco ruining our air quality and childrens futures there.
ChuckMejia
The General
memphsdad
But I don't live in Memphis
Mr. McSquirelly
Joe Bananas
Why wouldn't supplier tell Jersey to shove it though? How can Jersey enforce their tax code in another state? It's really weird. I'm thinking it might have something to do with bank or credit card and his interstate transaction. So is OP paying Chicago city tax, Illinois State tax, New Jersey Tobacco tax, and New Jersey sales tax? Jesus, Mary, and Joseph!
This is so fucked up. I shudder to think what 30% is of what I spent in the last couple years on cigars online.
PamunkeyHub
Jayson
Good reason to buy more CC!
Damn, I just ordered some skinny monsters from them!
Well, I did some digging on the answer, and it looks like the state of New Jersey frequently contacts other state tax departments for the export to NJ records. This isn't limited to cigars, but furniture, online purchases, etc. A good example of this, and other states doing the same would be Amazon sales tax controversy of several years ago.
New Jersey is more looking for sales/use tax, but when it comes to cigars the tobacco tax is just an added bonus to them.
The form that did you in can be found here: http://www.revenue.state.il.us/TaxForms/Misc/Tobacco/TP-11.pdf
The retailer is required to report names and address of out of state shipments to their home state tax department. This applies to all states, I just used IL as a reference since it was mentioned earlier. The state of NJ then contacts the various state tax authorities and cross files these against NJ residents sales/use tax returns. I would assume its legal under an interstate commerce clause somewhere, or a reciprocity agreement. I guess you should be happy that they didn't charge you penalty interest on the outstanding balance.
FWIW: I operate in a tax exempt industry in one state, that is not considered tax exempt in the other two states we operate in. I probably deal with 5+ sales tax audits every year. (We don't collect sales tax, its the vendor being audited, and the state is questioning our exemption certificates.)
Hopefully this answers the question, I would pay the bill and keep a spreadsheet of purchases in case this comes up again.
New Jersey is more looking for sales/use tax, but when it comes to cigars the tobacco tax is just an added bonus to them.
The form that did you in can be found here: http://www.revenue.state.il.us/TaxForms/Misc/Tobacco/TP-11.pdf
The retailer is required to report names and address of out of state shipments to their home state tax department. This applies to all states, I just used IL as a reference since it was mentioned earlier. The state of NJ then contacts the various state tax authorities and cross files these against NJ residents sales/use tax returns. I would assume its legal under an interstate commerce clause somewhere, or a reciprocity agreement. I guess you should be happy that they didn't charge you penalty interest on the outstanding balance.
FWIW: I operate in a tax exempt industry in one state, that is not considered tax exempt in the other two states we operate in. I probably deal with 5+ sales tax audits every year. (We don't collect sales tax, its the vendor being audited, and the state is questioning our exemption certificates.)
Hopefully this answers the question, I would pay the bill and keep a spreadsheet of purchases in case this comes up again.
Mr. McSquirelly
Joe Bananas
Holy sweet Jesus, if those clowns in Sactown do the same thing for Ariz. and Fla., I'll owe thousands of dollars in back taxes. Is there some kind of statute of limitations on purchase date, or do you think it remains outstanding until collected?
For example, the interstate commerce office in California decides today is the day it wants to collect on all interstate taxes for tobacco purchases. It contacts state tax departments in Arizona and Florida. Those departments then send a notice to retailers in their respective states to provide a list of all interstate transactions. That list is sent back to tax office in California. Names and dates are processed. I receive letter from CA State tax collection bureau demanding payment for taxes on all past interstate tobacco transactions?
Is this a possibility?
http://peisnerjohnson.com/wp-content/uploads/2014/12/statute-of-limits-sales-and-use-tax.pdf
List of statue of limitations for all states.
Granted sales tax is the main issue not tobacco tax. However all other tobacco products other than cigars are reported to the ATF. It's called the PACT act, enacted in 2010 to cut down on interstate cigarette smuggling
List of statue of limitations for all states.
Granted sales tax is the main issue not tobacco tax. However all other tobacco products other than cigars are reported to the ATF. It's called the PACT act, enacted in 2010 to cut down on interstate cigarette smuggling
Mr. McSquirelly
Joe Bananas
Holy shitballs, Batman! I had no idea. I guess I should've asked retailer. So essentially all my past interstate transactions with out-of-state vendors over the last three years (California statute time) are still outstanding with the California tax bureau? And they could collect unpaid sales tax on all those transactions over the last three years tomorrow, if so inclined?