My friend got a tax bill for over $3,000 for buying smokes online!

[MsDisney23]

My girlfriend called me lastnight very upset! She got a tax bill from our state (NJ) where she had bought ciggies online for several years! The bill is over $3,000 and she said they want the money within 30 days to avoid, interest, fines & penilities! I told her to call them to see if she could make a payment arrangement with them. I understand that alot of people got these tax bills yesterday.

 

[kilee]

I know I live near a "reservation" that sells a lot of the cig. online. They recently all have signs up saying they will no longer be doing so. Most of the are getting out of this business.

 

[eeyoreiscool]

That would be quite a shock for me. Hope they can get everything worked out.

 

[Divamomto3]

If that doesn't make you quit smoking, nothing will! If $3,000 is just the tax, imagine how much she spent on the actual cigarettes.

 

[Keggy]

I heard that is happening to a lot of people who were buying cigarettes online to try to avoid paying taxes in their states.

I am glad to see the states following through!

 

[CathrynRose]

I heard that is happening to a lot of people who were buying cigarettes online to try to avoid paying taxes in their states.

I am glad to see the states following through!

Youre glad states are WAY OVER taxing a LEGAL item??? Why?

 

[RadioFanatic]

I agree with Keggy - people are trying to avoid taxes - what if I tried to avoid paying the IRS? boy, would I like to, but I won't b/c I should not. if you don't like the tax on the item, then vote for a politician who won't make such a tax. but if the tax is there, the consumer using that product, knowing there is such a tax, should pay it.

 

[Alicnwondrln]

I heard that is happening to a lot of people who were buying cigarettes online to try to avoid paying taxes in their states.

I am glad to see the states following through!

this happened to someone at DH wrok same thing but over 1500 its crazy
now he drives to NH to get them

 

[eyeoreismyhero]

I say good for the state. Glad they are cracking down and collecting the tax they are due! $3000.00 is a hard hit but if ya owe it pay it.

 

[hemispheredancer]

They are cracking down in Michigan, too. I say good for them! That's whatcha get for trying to evade they system. Maybe it sill be an incentive for people to give the nasty habit up?

 

[mommaU4]

Makes me glad I never took up smoking. It's so expensive and some of the things people have to do to get their cigarettes is crazy. It's an addiction though and I hope maybe some will try to quit now.

 

[Tigger_Magic]

Youre glad states are WAY OVER taxing a LEGAL item??? Why?

For some reason states and even cities can get away with high taxes on items like this. Chicago just bumped its cigarette tax up another $1 I believe. For some reason it's just accepted. If it gets to the point where there's not enough smokers left to make the high taxes worthwhile, I wonder what the next item will be. Just hope it's not Twinkies.

 

[Nite0wl71]

That happened to a friend of mine at work. He didn't tell me how much and I didn't ask. Needless to say he stopped as soon as he got the bill.

 

[Marseeya]

I agree with Keggy - people are trying to avoid taxes - what if I tried to avoid paying the IRS? boy, would I like to, but I won't b/c I should not. if you don't like the tax on the item, then vote for a politician who won't make such a tax. but if the tax is there, the consumer using that product, knowing there is such a tax, should pay it.

Oh, so I'm avoiding taxes by ordering items from Amazon rather than going to a store that charges 7% sales tax? Hmmmmm. Someone better arrest me, then.

 

[Lizzydoll73]

NJ overtaxes cigarettes, among other things. Cigs over in PA are about $2 cheaper. I don't smoke but I think it's crazy to charge so much in taxes and now they want to start charging taxes on clothes! I want to get out of this state.

 

[Southern4sure]

NJ overtaxes cigarettes, among other things. Cigs over in PA are about $2 cheaper. I don't smoke but I think it's crazy to charge so much in taxes and now they want to start charging taxes on clothes! I want to get out of this state.

You dont pay taxes for buying clothes? What else do you not get taxed on?

 

[puffkin]

It is a hard lesson to learn, but good for the state!

People buy cigarettes online to avoid the taxes.....so I am glad the states are getting their due. I would rather have them tax things like cigarettes and alcohol and other similar items if it helps keep taxes on gas and other necessities lower. All us non-smokers pay enough with our health care premiums to cover all the smoking related issues, so if the taxes help us out in other areas, great. Hopefully this encourages a lot more people to quit, or at least not try to cheat the system.

 

[eyeoreismyhero]

Oh, so I'm avoiding taxes by ordering items from Amazon rather than going to a store that charges 7% sales tax? Hmmmmm. Someone better arrest me, then.

Yes you are avoiding tax if you wanna get technical. In NC there is line of the state tax return where you are "suppoused" to report all internet transactions and remit the sales tax. I'm guessing that line doesn't get used very often. Guilty as charged here!

 

[Bob Slydell]

Yes you are avoiding tax if you wanna get technical. In NC there is line of the state tax return where you are "suppoused" to report all internet transactions and remit the sales tax. I'm guessing that line doesn't get used very often. Guilty as charged here!

Same here in Ohio -- I actually do fill in the box for big-ticket items. Just like the OP's friend, it's something that's easily traceable (and thus, enforcable).

 

[Geoff_M]

Same here in Ohio -- I actually do fill in the box for big-ticket items. Just like the OP's friend, it's something that's easily traceable (and thus, enforcable).

As do most states. Here, as in a lot of other states, it's know as a "Use Tax". If you make an out-of-state purchase and bring it back into your home state, then legally you owe a home state "Use Tax" on the item. This is usually equal to your home state's "Sales Tax". States have been trying for years to "plug" this tax-leak in their system by trying to get access to mail-order records and such.

Michigan has a rather smart approach to the problem. You are still required to report and pay taxes on out-of-state items over $1,000, but for everything else you can pay a small flat amount based on your income that will satisfy Michigan's requirements to pay a Use Tax on items under a grand. For us it's about $40 a year. Based on the amount of mail-order and Internet purchases we do, we're money ahead for sure! Plus, we'll avoid getting such back-tax letters from the state if they do get ahold of the records of BN.com, Land's End, etc.