Cigarette tax for out of state purchases?

This is a discussion on Cigarette tax for out of state purchases? within the Tax Issues forum, part of the Other Business & Finance Law Issues category; I got invoice from NJ for buing on-line sigaretts from 2006 to 2009 - $8,909.17 It is more then $32 ...

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Old Dec 14th, 2012, 11:52 PM   #11
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Default Re: Cigarette tax for out of state purchases?

I got invoice from NJ for buing on-line sigaretts from 2006 to 2009 - $8,909.17
It is more then $32 per carton I purchased for my son and me.
Average price I paid to CD2U is $30.
So, total price I should pay is more than $62 per carton.
I do not think it is fare...CD2U should take at least 50% of these penalties
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Old Dec 15th, 2012, 12:06 AM   #12
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Default Re: Cigarette tax for out of state purchases?

Quote:
Originally Posted by leon View Post
I got invoice from NJ for buing on-line sigaretts from 2006 to 2009 - $8,909.17
It is more then $32 per carton I purchased for my son and me.
Average price I paid to CD2U is $30.
So, total price I should pay is more than $62 per carton.
I do not think it is fare...CD2U should take at least 50% of these penalties
What you think doesn't matter. As a NJ resident, the law states you must pay taxes on cigarettes. Ignorance of the law is no excuse. If you're not paying them online, you STILL have to pay them - especially if the online e-tailer doesn't collect them from you at the time of purchase. They didn't pay the taxes because they didn't charge you for them.

And let's be honest - the whole reason you bought from that e-tailer in the first place was because the price was so much cheaper BECAUSE THEY DIDN'T CHARGE YOU THE TAX.

Your cleverness to avoid paying those taxes is why you got hit with the penalties and interest. That's why YOU get to pay them and not the e-tailer.
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Old Dec 15th, 2012, 07:39 AM   #13
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Confused Re: Cigarette tax for out of state purchases?

I was hit with similar assessment for tobacco I bought between 2006 and 2009, but the taxes are assessed on Dec, 2012.
my question is why should I pay interest, Jenkins Law ask for monthly reports from the vendor, if they charged me from the first time, I will not do it again, because there will be no incentive to buy online. but they let it go forever, and hit you with taxes, and interest 6 years later, come on is this even legal?

People hate cigarettes and start commenting, but you almost pay no taxes for all online transactions, why only cigarettes, is this legal?. What if they start doing this for other goods and hit you with taxes and interest extending for several years on every thing you bought online?.

To the lawyer who is answering: did you buy stuff tax free online? did you know it is avoiding your state tax? did you know this stuff has tax in your state?. did you report it? then you are the same. criminal minded as everybody else.
will people has the write to pay the cheapest price for anything they buy, they are consumers.

it is not there duty to collect sales taxes for the government. it is the vendor duty to collect taxes for the government, why everything is reversed in cigarettes?. Is it because there is no defender?. Or are people are criminalized smoking?
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Old Dec 15th, 2012, 08:14 PM   #14
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Default Re: Cigarette tax for out of state purchases?

I also got the letter from NJ. Evidently all NJ residents that did business with CD2U are getting these letters. But the real problem is that it shows double the amount I actually bought from CD2U. I had trouble with the vendor over lost orders and stopped doing business with them eventually. They were terrible at orders and record keeping and they appear to have been out of business now for at least two years.
Now the NJ letter shows a doubling of orders that I never received. Per the NJ letter I received it looks like CD2U's computer had a recurring transaction for orders that were never authorized or received by me and I am going to dispute the assessment.
The state has provided no copies of original CD2U records, merely a list of these alleged transactions. I will be asking for all original CD2U documentation as well as shipping invoices and receipts, as I signed for all legitimate orders.
I suggest you look at the state's letter carefully and if you doubt the amount demand the same access to records and shipping invoices.
I am hoping that the state has to bear the burden of showing that orders were actually filled and delivered and not rely solely on some printout which is in error.
Good luck
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Old Dec 18th, 2012, 01:06 PM   #15
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Quote:
Originally Posted by Leon View Post
It is more then $32 per carton I purchased for my son and me.
Average price I paid to CD2U is $30.
So, total price I should pay is more than $62 per carton.
I do not think it is fare...CD2U should take at least 50% of these penalties.
I too just got my Christmas present from the State of NJ for OVER 12,000.00 dollars for cigarettes going back to 2004.. how can they not notify you for so long and then try and collect all those taxes and interest! Sounds like a real scam to me. I also quit and I am disabled and unemployed as well and have no income. If I was notified about this I would have stopped buying them a long time ago.... Any way to fight this or appeal it!!!
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Old Dec 19th, 2012, 02:08 AM   #16
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Confused Re: Cigarette tax for out of state purchases?

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Originally Posted by sandyclaus View Post
What you think doesn't matter. As a NJ resident, the law states you must pay taxes on cigarettes. Ignorance of the law is no excuse. If you're not paying them online, you STILL have to pay them - especially if the online e-tailer doesn't collect them from you at the time of purchase. They didn't pay the taxes because they didn't charge you for them.

And let's be honest - the whole reason you bought from that e-tailer in the first place was because the price was so much cheaper BECAUSE THEY DIDN'T CHARGE YOU THE TAX.

Your cleverness to avoid paying those taxes is why you got hit with the penalties and interest. That's why YOU get to pay them and not the e-tailer.
Contact a lawyer. The Jenkins Act requires CD2U to file reports, no later than the 10th of each month, with both the tobacco tax administrator and the Attorney General, .... It's obvious that they never did.
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Old Dec 19th, 2012, 02:35 AM   #17
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Default Re: Cigarette tax for out of state purchases?

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Contact a lawyer. The Jenkins Act requires CD2U to file reports, no later than the 10th of each month, with both the tobacco tax administrator and the Attorney General, .... It's obvious that they never did.
Regardless of whether or not CD2U filed the appropriate reports in a timely manner, that doesn't absolve the consumer from paying the requisite taxes.

From the New Jersey Treasury Department:
Quote:
New Jersey residents are not permitted to possess unstamped cigarettes, counterfeit stamped cigarettes, or cigarettes stamped by another state. There is no exemption for small quantities under the law.

A consumer who purchases cigarettes from another state or stamping jurisdiction is expected to notify the Division and pay New Jersey’s Cigarette Tax and Sales and Use Tax in full. Sales and Use Tax should be calculated on the purchase price and Sales and Use Tax will not be assessed on the Cigarette Tax otherwise due on the purchase. This process is known as self-disclosure.

New Jersey residents who possess unstamped cigarettes, counterfeit stamped cigarettes, or cigarettes stamped by another state are also subject to additional penalties as set forth by N.J.S.A. 54:40A-25 which states that: “Any wholesale dealer or retail dealer who violates the provisions of section four hundred six of this act, and any consumer who fails to report and remit the tax due…, shall be liable to a penalty of not more than twenty-five dollars ($25) for each individual carton of unstamped or illegally stamped cigarettes in the dealer’s possession, which penalty shall be sued for and recovered in the same manner as provided for the penalties imposed by section six hundred one of this act.”

The Appellate Division of the New Jersey Superior Court has upheld the imposition of taxes, penalties and interest on cigarettes purchased via the Internet after the taxpayer rejected demands for payment and failed to take advantage of a tax amnesty that was offered. The taxpayer had purchased the cigarettes on the Internet from an out-of-state unlicensed seller of unstamped cigarettes. The dealer, who did not remit taxes to the Director of the New Jersey Division of Taxation, notified the Director of the taxpayer’s purchasers, as required by federal law. Gary Mosher v. Director, New Jersey Division of Taxation, New Jersey Superior Court, Appellate Division, Dkt. No. A-2515-02T3, 2-17-2004; cert denied in Gary Mosher v. Director, New Jersey Division of Taxation, 180 N.J. 354:851 A.2d648, (2004).
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Old Dec 19th, 2012, 12:06 PM   #18
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Originally Posted by sandyclaus View Post
Regardless of whether or not CD2U filed the appropriate reports in a timely manner, that doesn't absolve the consumer from paying the requisite taxes.

From the New Jersey Treasury Department:
There's a lot of fear mongering in all your comments. Your one sided opinions seem to amaze me.
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Old Dec 19th, 2012, 04:53 PM   #19
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Default Re: Cigarette tax for out of state purchases?

I just received a tax bill for 2,280. from maybe 10 years ago. How do they come up with this stuff. It states that the cigarettes were mailed to my address. Nowhere does it have my credti info or my ss #. Is there a way for me to appeal this large debit?
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Old Dec 19th, 2012, 05:09 PM   #20
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I just received a tax bill for 2,280. from maybe 10 years ago. How do they come up with this stuff. It states that the cigarettes were mailed to my address. Nowhere does it have my credti info or my ss #. Is there a way for me to appeal this large debit?
They got your information from the retailer.
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