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

[DawnCt1]

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.

I will be ordering my Olympus Stylus 800 this month. Shhhh, don't tell Ct. I am getting it on line! On the other hand, my camera isn't costing tax payers a thing. Cigarettes cause death and disease and often the lung cancer patient or the COPD'er is on Medicare or Medicaid and thus receiving an entitlement that those of us who do pay taxes have to cover. 15 years ago, the true cost of a pack of cigarettes was in the range of $7. Who knows what it is now. I lost my father at the age of 57 to lung cancer after a very miserable death. I also lost two uncles to tobacco. So from my personal experience, I don't think anyone should smoke. On the other hand, if everyone quit smoking and lived longer lives, would that increase the burden on Social Security? Maybe.

 

[Miss Jasmine]

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.

You took the words right out of my fingers.

I bet there are a lot tax avoiders around here!

 

[Miss Jasmine]

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

There's a state income tax, that is why clothing in the past has not been taxed.

 

[caitycaity]

In NC there is line of the state tax return where you are "suppoused" to report all internet transactions and remit the sales tax.

yep, md has this as well.

 

[skiwee1]

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.

We have a snack tax here in MD so your Twinkies aren't far behind in getting taxed!

 

[Southern4sure]

There's a state income tax, that is why clothing in the past has not been taxed.

Thanks. AL never gave a tax break. I'm use to paying 9% tax on everything and 10% tax just to go out to eat. Im still trying to get use to the lower tax rate in FL and no tax on groceries.....

 

[Chicago526]

Try living in IL. Every town, city, and county can set their own sales tax rate on top of the IL state sales tax. The town I grew up on had a 7.25% sales tax on all items other than food (groceries were 2% I think). Restaurant tax is 10.25%! But you go one town over, sales tax can be 6.5% sales tax on everything (again except groceries).

On top of all that, IL has a 2% income tax.

I actually like this system, I'd rather pay higher sales tax and a lower income tax. It makes it more fare for low income families. They pay little to no income tax, and since they are low income, they don't pay much in the way of sales tax either (since they presumably don't buy as many consumer items or go out to eat much).

 

[cardaway]

This is why Amazon is low on my list of stores to buy from. Darn Seattle headquarters.

Good thing there are other options.

 

[bigmerle1966]

Okay this is an interesting thread. One question, if I buy just regular every day items at say the Target when I visit my sister in VA and I pay sales tax there, am I supposed to aclaim that in MD on my taxes? I knew that if you bought a car in another state you had to pay tax to both the state you bought it in and your own when you registered it in your home state.

 

[salmoneous]

The MD use tax is pretty typical. You owe them a tax of 5% on out-of-state purchaces, but get a credit for taxes paid to the other state (up to the 5%). So if you sister lives in the part of Virgina with a 4% tax rate, you owe MD 1%. If she lives where the tax rate is 5%, you own MD nothing.

 

[barkley]

in california if you buy a big ticket item (like a car) you can avoid paying the higher sales tax another county imposes by showing proof of residency in another county with lower sales tax. not exactly sure how this works, but when we've purchased vehicals in the county adjacent to us (that has like a 1% higher sales tax to support it's mass transit system) we've been able to have the tax adjusted down to our county's sales tax rate by showing proof of residency and signing some form.

as far as cigarettes and alcohol go-most folks will stock up when they go to nevada which sells them for much less. since there is no law regulating how much can/cannot be purchased in another state and brought back to california we don't have any tax liability on it-though it won't surprise me if they implement something to get more of our $$$. we do suffer from the "lodging taxes"-most touristy areas simply forgo sales tax rates and charge anywhere from 10-15% on lodging so that the city can realise a huge chunk of revenue.