Posted on 08/28/2011 3:11:07 PM PDT by SmithL
PLEASANT HILL -- To get a good deal, Paul Brodman used to buy cigarettes online.
Little did he know, those smokes weren't the bargain they appeared to be. There's no getting out of paying state taxes simply by buying cigarettes online.
Earlier this month, Brodman received a bill for $1,398 from the State Board of Equalization for back taxes and penalties he owes for 100 cartons of cigarettes he bought online from an out-of-state retailer in 2007 and 2008. Initially, Brodman thought it was a mistake.
"We smoked them; we didn't resell them," he said. "I wasn't selling them on the corner."
When he bought cigarettes online, Brodman should have paid the state an excise tax of 87 cents per pack, plus a use tax of 8.25 percent on the total purchase amount.
"We know that people make purchases out of state and online looking for a deal, and they know they're getting away with something, or they should know they're getting away with something," said Anita Gore, spokeswoman for the State Board of Equalization. "It is the law that these taxes be paid."
Brodman says he turned to the Internet because cigarettes were "substantially cheaper" than at the corner store.
One reason cigarettes are more expensive in California than in some other states is because voters have added several surtaxes to cigarettes and other tobacco products over the years. The base cigarette tax is 12 cents per pack. The additional 75-cent tax on each pack funds tobacco-related health education programs and
(Excerpt) Read more at contracostatimes.com ...
Hmmmm. Gore? I wonder how close her relationship to climate freak algore is. State Board of Equalization = redistribution of wealth.
[[ “State Board of Equalization”
At least they are honest about their purpose. ]]
That sounds like something right out of Atlas Shrugged...
Or George Orwell...
Just sayin’...
I quit when the price of a pack went over $1.75 at the PX.
From personal experience and in all honesty, the CA “State Board of Equalization” is complete truth in advertising. They are the meanest tax collection bastards imaginable. I escaped from fascist CA and will never set foot there again.
Oh, and the math as stated in the article does not add up. The total was a heck of a lot more than stated for 100 cartons.
I quit smoking when the Navy Exchange raised the price of a pack to 29¢.
One day, all you folks who like to unfairly tax your neighbors will get yours.
“I don’t think you can buy cancer sticks online anymore can you? The Post Office won’t ship them and FedEx/UPS won’t either.”
I heard 9 cartons of 100’s fit into a large flat rate box... When has the post office ever ask the content? They just ask if it is breakable and/or hazardous...
The state taxes are determined by the citizens of that state. If the people of California do not like paying high taxes for cigarettes, then why don’t they just lower those taxes?It wasn't the smokers that raised the tobacco taxes.
An overwhelming majority of Californians, including those who call themselves Republicans, are perfectly happy to vote to raise taxes, as long as those taxes apply to someone else.
“The total was a heck of a lot more than stated for 100 cartons.”
Don’t forget penalties, interest, and extra charges added just because they can.
Under federal law, online cigarette retailers must report purchase information to state tax collectors, Gore said. Some sellers submit monthly invoices, she said, while it sometimes takes a little legal arm-twisting from state attorneys general to get the data from reluctant retailers.
I call myself a Republican and a conservative. And I’ve served on the GOP Central Committee and been to many a FReeper and Tea Party rally. Proud to say I, and millions of other conservatives support taxes on cigarettes.
Econ 101. An increase in price produces a decrease in demand.
You are incorrect in your self-assessment. You are a statist, regardless of whatever else you call yourself or do.
The Beatles – Taxman — 1966
Let me tell you how it will be;
There’s one for you, nineteen for me.
‘Cause I’m the taxman,
Yeah, I’m the taxman.
Should five per cent appear too small,
Be thankful I don’t take it all.
‘Cause I’m the taxman,
Yeah, I’m the taxman.
(If you drive a car) — I’ll tax the street;
(If you try to sit) — I’ll tax your seat;
(If you get too cold) — I’ll tax the heat;
(If you take a walk) — I’ll tax your feet.
Taxman!
‘Cause I’m the taxman,
Yeah, I’m the taxman.
Don’t ask me what I want it for, (ah-ah, mister Wilson)
If you don’t want to pay some more. (ah-ah, mister heath)
‘Cause I’m the taxman,
Yeah, I’m the taxman.
Now my advice for those who die, (taxman)
Declare the pennies on your eyes. (taxman)
‘Cause I’m the taxman,
Yeah, I’m the taxman.
And you’re working for no one but me.
Taxman!
Yawnnnn.
His mistake was in not using a proxy buyer. When asked, companies will invariably kick down your information to government. So the only way out, if you live under an oppressive government, is to not use the direct route.
In this case, he and several other smokers could have made a deal to buy their smokes in bulk, on one of the four Indian reservation on the California border area in Arizona.
They give him their money, then on a weekend, one of them drives across the border and picks up a lot of cigarettes, for delivery back to the group.
At about $3+ a pack in federal and State taxes in California, for $5 a pack total, this can add up to a lot of savings in a hurry.
I’m sure lots of Californians do this on a regular basis already.
I got one from the lovely state of Maryland for over $800 just a couple of weeks ago. My husband is a lawyer and is fighting it.
“An increase in price produces a decrease in demand.”
Who the hell are you to produce a decrease in demand by levying heavy taxes something that other people want?
Seig Heil, RINO.
“An increase in price produces a decrease in demand.”
Who the hell are you to produce a decrease in demand by levying heavy taxes on something that other people want?
Seig Heil, RINO.
I don't mind being called a Nazi by addicts or those who pimp death.
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