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To: DemforBush
How can this (the state's actions) even be legal?

It's legal because most states don't have just a sales tax but have a sales and use tax. The use tax basically says that you are responsible for reporting and paying the tax on anything you buy if the seller doesn't collect the tax from you.

Thus, anytime, any of us order off the internet or through mail and don't report and pay tax, we are breaking state law. We've all been doing it for years. It's just the state has no way to enforce it, so they don't.

But since the cigarrette people have to report, then the states have a tool they can use.

9 posted on 06/25/2006 9:03:51 PM PDT by DannyTN
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To: DannyTN
Ah, I hadn't been aware of the tax and use principle. That explains it, then.

Thanks for the info!

18 posted on 06/25/2006 11:42:54 PM PDT by DemforBush
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To: DannyTN; DemforBush
It's legal because most states don't have just a sales tax but have a sales and use tax. The use tax basically says that you are responsible for reporting and paying the tax on anything you buy if the seller doesn't collect the tax from you.

Then how come reputable online company (like JC Penny) will add the state tax (such as Maine, when they have an outlet in the state), and make it their responsibility instead of the consumer?

Why is it just the tobacco dealer's that refuse to do this, leaving the consumer out there flapping in the wind?  If a store has an outlet in said state, and when an order is placed over the internet from said company, then the company will add on the state tax.  The consumer doesn't have to bother with it.

Yet, just because it has to do with tobacco and screwing the smokers, smokers who order off of the internet are made to believe this is their responsibility.  How quaint.

22 posted on 06/26/2006 3:27:59 AM PDT by SheLion ("If you're legal, you can fly with the Eagle!" - Michael Anthony)
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To: DannyTN

The tobacco is already taxed in the producing state.

A use tax or any other tax is double taxation and not permitted under the federal ICC.

These states are breaking the law, but don't expect the federal government to sue these states and stop them.

The ICC was written to assure that one state couldn't punish another state - with fees and taxes - who competed better in the free market.

The use tax is only "legal" in the sense that our socialist legislature and court allow it to be "legal."

Welcome to the United Soviet Socialist States of America.


41 posted on 06/26/2006 5:56:16 AM PDT by sergeantdave
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