Basically, ALL states that have a Sales and Use Tax do this. The Sales Tax rate and the Use Tax rate are exactly the same. Many states leave it to the citizen to come forward.
When an item is purchased in Missouri and not exported (by the retailer) then Missouri sales tax is due. When the customer takes possession and brings the item(s) into another state (Illinois) then Illinois Use Tax is due.
Say, for this example, Missouri sales tax is 6% and Illinois tax is 7% then the individual would owe Illinois the additional 1%. However if the Illinois tax is less than the Missouri tax there is no refund.
Been that way for decades.
About 5 years ago, I received a form along with my Illinois income tax form that came in the mail. They asked me to list all liquor and tobacco purchases made in another state. I threw away the form and never heard another word about it, nor did they send me that form any more.
At the time, I was a smoker and did purchase all my cigarettes in Missouri, where they were much cheaper and it was convenient for me as I made several trips per year to Missouri anyway.
I bought several cartons at a time but from the day I got that form from the state, I always paid cash for my Missouri cigarettes.
Another point I might add was that the retailer where I bought my cigarettes in Missouri had a sign on the counter that stated, “limit 3 cartons per purchase”. I asked about it and the clerk told me that they were required to put up that sign but indeed he would sell me as many as I wanted to buy.
Some may say, “tax evasion”, I prefer to call it, “tax avoidance”.
The Sales Tax rate and the Use Tax rate are exactly the same. Many states leave it to the citizen to come forward.
Except New York State, where they have a giant data mining operation underway trying to identify credit card purchases you have made online or at out-of-state malls. I have talked with IT consultants who have actually worked on this project. They openly referred to it as “Eliot Spitzer’s Wet Dream”.