Because when they have an outlet in the state, the state can audit them wherever their headquarters is. The state has power over them. A state can't force a company in another state that doesn't have a physical presence in their state to report to them.
"Why is it just the tobacco dealer's that refuse to do this, leaving the consumer out there flapping in the wind?"
The tobacco dealers are required to report by law, according to another poster in this thread. If JCPenny didn't have outlets in your state, they would not collect the tax. It's not that they are more reputable, it's that they have physical presence in your state and are therefore required to submit to audits.
The law is unfair to the online tobacco dealers because it makes them report but not other online retailers.
I think, a state can request/demand sales taxes in which the sale occures within the state's boundaries.
However, the majority of taxes on tobacco are EXCISE taxes. Both federal and state.
If I take a trip out of the country, say, to Jamaica, US Virgin Islands, or Bahamas, I can bring into the country 5 cartons of major brand cigs sans the federal excise taxes. Yes, I realize this is a very expensive way to bring in cigarettes. My question is, and it was not on the custom's form...How many cartons may I bring in personally per year or over ANY period of time?
Secondly, What is the difference of purchasing cartons during a trip, shipping them home, and purchasing cartons over the Internet for home delivery? The point of sale is still out of the jurisdiction of our federal burrocraps and the end use is still personal.
I would appreciate input...
The law is unfair to the online tobacco dealers because it makes them report but not other online retailers.
Thanks Danny.