State ban against online cigarette sales begins today

TheJournalNews.com ^ | June 18, 2003 | ALLAN DRURY

[Just another Joe]

New Yorkers who have been dodging the state's sales tax on cigarettes by buying their cigarettes online lose that right today due to a law that was passed in 2000 but has been bottled up in litigation.

The law, which is still being challenged by pro-tobacco interests, prohibits the delivery of cigarettes purchased over the Internet to a consumer in this state and specifically targets Internet sales. A violation is a class A misdemeanor and can bring a jail sentence of up to a year.

[honeygrl]

It sounds like NY is attempting to become it's own little independant country.

[honeygrl]

But doesn't the tax only apply if you sell the cigarattes you make? If you make them only for personal use, how can they tax you on them? There are lots of cheap roll-your-own machines available on ebay. Roll your own, let friends buy tobacco and use your machine. How can they tax that?

[honeygrl]

"Thank god I live in the South where I can still buy a carton of Marlboros any day of the week at Kroger or the local Exxon for $21.99. And we can still smoke at most restaurants and bars. "

Where do you live? I'm in GA and the best price i've found on cartons of Marlboro for the hubby was $24.99. Those are $5 cheaper than everyone else because they are from the Wal-Mart gas station.

[VRWC_minion]

I don't see an exception for grow or roll your own tobacco if you have more than 5 pounds.

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§ 471-c. Use tax on tobacco products. There is hereby imposed and shall be paid a tax on all tobacco products used in the state by any person, except that no such tax shall be imposed (1) if the tax provided in section four hundred seventy-one-b of this article is paid, or (2) on the use of tobacco products which are exempt from the tax imposed by said section, or (3) on the use of two hundred fifty cigars or less or five pounds or less of tobacco brought into the state on, or in the possession of, any person. Such tax on tobacco products shall be at the rate of thirty-seven percent of the wholesale price. Within twenty-four hours after liability for the tax accrues, each such person shall file with the commissioner a return in such form as the commissioner may prescribe together with a remittance of the tax shown to be due thereon. For purposes of this article, the word "use" means the exercise of any right or power actual or constructive and shall include but is not limited to the receipt, storage or any keeping or retention for any length of time, but shall not include possession for sale. All the other provisions of this article, if not inconsistent, shall apply to the administration and enforcement of the tax imposed by this section in the same manner as if the language of said provisions had been incorporated in full into this section.

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Excpetions are

except that no tax shall be imposed on tobacco products sold under such circumstances that this state is without power to impose such tax, or sold to the United States, or sold to or by a voluntary unincorporated organization of the armed forces of the United States operating a place for the sale of goods pursuant to regulations promulgated by the appropriate executive agency of the United States,

[Fraulein]

I live in Nashville, but I am from Cobb County, so I head home quite a bit. Last time I was down there I noticed that cartons of Marlboros were also pretty cheap at the Kroger's there. Something like $22.99-$24.99. They are also pretty cheap at the gas stations along the northern part of 75-N.

Much better than the $70 cartons in New York! :)

[Just another Joe]

Those little machines are cheap on ebay and they add a filter to the cigarette too so you can still have the filtered cigs if you want.

I'm not talking about a rolling machine. I'm talking about an injection machine.
And you can buy the tubes with the filter already there for less than 2 cents a tube.

I use a Supermatic Premier but there are several on the market.

[Just another Joe]

Do you have any idea how long 1 kilo (2.2 lbs) of tobacco would last the average user?

[Centurion2000]

They're not banning the sales of cigarettes, they're banning the SHIPMENT of cigarettes bought out of state INTO the state.

They can't do that either. Interstate Commerce Clause and a restriction on state to state commerce should cover that as well.

[Just another Joe]

They can't do that either. Interstate Commerce Clause and a restriction on state to state commerce should cover that as well.

That's why it should be a slam dunk for the courts to stomp on it.

[Centurion2000]

The big gun is the Jenkins Act. Once the Feds start enforcing it, game over.

Indian Reservations (and their online sales) are immune to that act.

[VRWC_minion]

Do you have any idea how long 1 kilo (2.2 lbs) of tobacco would last the average user?

Why would I care ?

[Just another Joe]

4.9 lbs is under that 5 lb limit your post quoted.
Shoot, even 1 lb of tobacco would last me more than a month.
The 5 lbs of tobacco is something for tobacco dealers and tobacco stores. It wouldn't affect the average person that stuffs their own cigarettes.

[VRWC_minion]

Keep in mind once you convert the tobacco to cigs its subject to the use tax if you have more than 2 cartons worth.

[VRWC_minion]

Indian Reservations (and their online sales) are immune to that act.

But a NY citizen possesing cigarettes isn't,

[VRWC_minion]

4.9 lbs is under that 5 lb limit your post quoted.

If this market became significant how long to you think it would be before they lowered the amount to 5 ounces ?

[autoresponder]

Pretty soon we will see cigarettes being brought up in car trunks from the South!

[Just another Joe]

Keep in mind once you convert the tobacco to cigs its subject to the use tax if you have more than 2 cartons worth.

If you were going to sell them, maybe. I don't think so for personal use.

[Just another Joe]

If this market became significant how long to you think it would be before they lowered the amount to 5 ounces ?

Oh, I know. And you would be right there cheering, wouldn't you.

[Eaker]

Have you paranoid Schizophrenic for a long time or is this a recent malady ? I understand Lithium is very helpful.

Judging from your grasp of the English language perhaps you should drop your dosage some.

You are a NAZI pure and simple. Your government will gore your bull one day soon. You will look to us for help and we will laugh in your face.

[Just another Joe]

Pretty soon we will see cigarettes being brought up in car trunks from the South!

I'm sure that's already happening. You just don't hear about it yet because the dealers haven't marked out their territory yet. There haven't been any gunfights yet.