When it comes to cigarette taxes, Pennsylvania taxman not blowing smoke

ComputerWorld ^ | 18 April 2007 | Linda Rosencrance

[Sam_Damon]

As if it weren't enough that the price of cigarettes has skyrocketed, some 4,329 Pennsylvanians who purchased cigarettes over the Internet or from out-of-state mail order companies will soon receive a letter from the state Department of Revenue asking them to pay state taxes on their purchases.

Under the federal Jenkins Act, vendors that ship cigarettes into another state are required to release information about the purchases to state taxing authorities, according to the statement. "Unfortunately, many Web sites falsely advertise that cigarettes can be purchased tax-free," said Thomas W. Wolf, Pennsylvania's acting secretary of revenue. "In fact, in Pennsylvania and most other states, people who purchase cigarettes from another state are required to pay cigarette taxes to their home state."

[Sam_Damon]

Pennsylvania taxmen running amuck. Again.

While I have chosen not to smoke, I find this sort of intrusion into peoples' private lives unsettling.

[SheLion]

Read just how much cigarette taxes Pennsylvania smokers are already contributing to the state economy!

Pennsylvania Information

Tobacco Taxes

Pennsylvania's excise tax per pack of cigarettes: $1.350
Pennsylvania's excise tax collection for the
fiscal year ending June 2002: $331,645,000

Sales tax on tobacco products: 6.00%

Federal excise tax per pack of cigarettes: $0.39
Total federal excise tax collections in fiscal year 2002: $7,512,700,000

Comparing Excise Taxes on Cigarettes, Beer

Number of six-packs of beer that must be sold in Pennsylvania to produce the same state excise tax revenue generated by one carton of cigarettes: 222.2

Pennsylvania Smokers' Contributions to the State Economy - 2002

In 2001, Pennsylvania smokers comprise only 24.5%1 of the adult population in the state. Here is what they already pay because they choose to buy a legal product:

Smokers Pay Excise Taxes2
$ 331,645,347

Smokers Pay Sales Taxes2
$ 202,804,803

Smokers Pay Tobacco Settlement Payments3
$ 411,219,801

Total $ 945,669,951

Pennsylvania Smoker Facts 5

Pennsylvania smoker payments in FY2002 were:

Five times larger than FY2001 excise taxes on alcoholic beverages ($187.6 million).

Larger than Pennsylvania's FY2001 motor fuels tax revenues ($785.7 million).

More than two-thirds (68%) as large as FY2001 state net corporate income tax collections ($1.4 billion).


The total amount paid by smokers in Pennsylvania in FY2002 would have supported available FY2002 general fund amounts for:

Special Education ($861.4 million)
OR

Community and Economic Development ($461.7 million) AND Environmental Protection ($245.6 million) AND State Police ($178 million) COMBINED
OR

Health ($256.5 million); and the Higher Education Assistance Agency ($412.8 million) COMBINED.

In 1997, smokers provided 18,943 jobs that paid an additional $28.2 million to the state in personal and corporate income taxes.6

TOTAL SMOKER CIGARETTE PAYMENTS TO PENNSYLVANIA

Per year:
$ 945,669,951

Per day:
$ 2,589,103

Per hour:
$ 107,879

Per minute:
$ 1,798

Per second:
$ 30

CIGARETTES DON'T PAY TAXES -
PENNSYLVANIA SMOKERS DO!!

[paratrooper82]

Have you visited Michigan lately, it would appear that tobacco is the tax out of existence product of the year, and soon it will be fatty foods, SUV’s, and the evil gun, and ammunition!

[E Rocc]

This is why you shouldn't have them shipped in, and should pay cash when you go buy them out of state.

-Eric

[Sam_Damon]

A very good point that I shall make to my friends who smoke.

[SheLion]

The lawmakers are really greedy when it comes to cigarette taxes.

I know a lot of people in Illinois have received back tax letters from their lawmakers.  It's a real nightmare.

[Alamo-Girl]

Thanks for the ping!

[BallyBill]

WOW, I live in PA and not even an hour ago was explaining to someone that this is one of the reasons I quit smoking (hadn't heard this story, yet).

I bought all of my smoke for the last few years through on line sites. I never bought name brand smokes, only Indian Nation brands, but recently they even changed the way you ordered them and they had to be delivered by the USPS.

I knew this was coming and bought my last smokes in January and finally quit in February. Once the USPS (Government)came into play with the purchase, I knew the jig was up and there was a paper trail they could trace.

[lakeman]

got one of those letters from my Illinois Tax Grabber
cost me 600 bucks or facce charges for tax evasion.

Friggin Thieves Also included in th e illinois tax booket was a form for out of state tobbacco purchases.

[Nathan Zachary]

As long as democrats are elected, they'll keep dipping into that tax money honeypot.

At least taxes aren't that bad in the USA -yet. Buy a pack of smokes in Canada, and it will cost you $11.25. That's what's going to happen here too. The bad habit Police will be going after raising taxes "for your own good" as soon as they finish banning smoking everywhere. You can count on it, and it won't matter how hard smokers protest.

[E Rocc]

Seneca Niagara Falls....$15/carton.

-Eric

[SheLion]

I knew this was coming and bought my last smokes in January and finally quit in February. Once the USPS (Government)came into play with the purchase, I knew the jig was up and there was a paper trail they could trace.

Can't stand the high taxes?

Afraid to order off of the Internet?

Then start rolling your own!!! I find everything but the machine downtown at the local Smoke Shop.  Also, Rite Aid and grocery stores also sell the bags of tobacco and the filtered tubes.

I roll out a beautiful carton for a little under $8 dollars.  Premiums in my state are now up to $45-$50 a carton.  Can you imagine the money I have saved over the past 4 years since I now roll my own?  It's mind boggling.

under $50.00

Check StuffYourOwn for prices on tobacco

$1.99 for 200 filtered tubes

Make your own cigarettes for as low as $6.99 per Carton! Smoke Quality FILTERED cigarettes that you make yourself using cigarette tubes (like a cigarette without the Cigarette tobacco), our cigarette making machines, and our "roll your own" cigarette tobacco.


-Stop Paying High Cigarette Taxes
-So Much Easier than "Roll Your Own" cigarettes!

and

Smokers United

Roll Your Own Tobacco Store

Roll Your Own Magazine

[Still Thinking]

Exactly. Simply drive to the nearest Indian reservation and buy them in person, with cash.

[dljordan]

“Have you visited Michigan lately, it would appear that tobacco is the tax out of existence product of the year, and soon it will be fatty foods, SUV’s, and the evil gun, and ammunition!”

That’s why smuggling will always be in vogue.

[3catsanadog]

Yup, if no one smokes, that’s alot of tax money lost for the government porkers. Time to tax other things that aren’t good for us so they’ll get those tax revenues.