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.

[newgeezer]

The tax law seems to apply to the user. See the PDF file posted above. From reading page 3 of that form, the tax needs to be declared by the user of the product.

From those instructions: The state cigarette use tax must be paid by any person who uses ... cigarettes in the state, ... on which the cigarette tax has not been paid

In other words, every NY resident user who buys cigarettes out of state is obligated to pay the use tax. It's the time-honored method of taxing the closest target.

It doesn't change anything that I posted previously. If the out-of-state seller manages to skirt the law and ship the cigs to the buyer, the buyer also becomes liable for the taxes due. It's sort of like the Marijuana Stamp Act. If they can get you for nothing else, they get you for tax evasion because it's easy to prove. You either have the stamps or you don't.

[Publius6961]

BUMP

[Protagoras]

And they will become liable for severe taxes, penalties etc.

They don't tax those who break laws, they imprison them. But hey, that's your nirvana, everyone in jail. That's your idea of a great country.

Everything against the law and total government control. A police state is utopia for liberals like you.

I hope you go early in the conflict.

[Ford Fairlane]

Use UPS Worldship & you dont have to fill in anything but destination, weight, & dimensions

[Calpernia]

Thanks for all your info on this. I'm starting to get a headache from some of the specifics :) ;)

I think I'm just glad I'm not a NY resident at this point AND I will never sell cigs :P too technical.

I'm off to see what is going on here: http://www.freerepublic.com/focus/f-news/931949/posts

Pleasure chatting.

[VRWC_minion]

A police state is utopia for liberals like you

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

[Fraulein]

A class A misdemeanor?

THE SMOKE NAZIS ARE OUT OF CONTROL!

[Fraulein]

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.

[Protagoras]

Have you paranoid Schizophrenic for a long time or is this a recent malady ?

I'm not paranoid at all. I have watched you post for a long, long time. You are a liberal. You love government power to control people. Tobacco currently is your pet project for government control. You are all over these threads gushing about government power on this issue. I'm sure it's not limited to this issue either.

[CSM]

I actually by mine by mail order from a tribe in NYS and they are still very cheap, the difference is that they are mfgd. by the tribe and still subject to the mfg. tax, but not the sales tax.

[Coleus]

ping.

[SwankyC]

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.

This is moronic. What are they going to do, throw the postman in jail?

[Bogey]

Sales of tobbaco are tracked from the source to the user.

---

Totally wrong. Sales of tobacco are tracked by state tax stamps. Smoking stats are tracked by state tax stamps.
1 carton per smoker. Federal taxes are paid by tobacco co. as shipments leave their manufacturing plants.
Which is why the number of smokers is much, much higher than what is reported. Millions of cigarettes are smoked in this country that go unreported. Always have.
California's smoking rates have not declined one ioto as reported. The decline was sales in California. Those shifted to Nevada and online sales.

[Bogey]

Sales of tobbaco are tracked from the source to the user.

---

Totally wrong. Sales of tobacco are tracked by state tax stamps. Smoking stats are tracked by state tax stamps.
1 carton per smoker. Federal taxes are paid by tobacco co. as shipments leave their manufacturing plants.
Which is why the number of smokers is much, much higher than what is reported. Millions of cigarettes are smoked in this country that go unreported. Always have.
California's smoking rates have not declined one ioto as reported. The decline was sales in California. Those shifted to Nevada and online sales.

New York is learning this the hard way as well.
Sales dropped to lowest levels in the country. Not smokers.
As California raises prices again, the reduction of tax stamps will drop. Not users.
Bloomberg said he wanted people to quit. Clearly he lied again. Or he wouldn't be making internet sales illegal in N.Y.
Or I should say trying to. The courts will slam dunk this.
Can't make interstate sales illegal.

[arasina]

Bloomberg said he wanted people to quit. Clearly he lied again. Or he wouldn't be making internet sales illegal in N.Y.

This was not a Bloomberg thing. It was supposed to go into effect in the Fall of 2000. The bill was a New York State Legislature effort...statewide, not just New York City. (yech...it's horrible having to essentially defend Bloomberg...but I had to clarify this.)

As a former New Yorker and social pariah smoker, I'm glad I moved back home to Indiana, but I have a feeling the old "Coming soon to a state near you!" applies.

[Mears]

I can't believe there are places that still sell cigs for $21.99 per carton.

The south sounds better and better. I live in Mass. which is a horror show. Even if we get cigs for a good price we have very few places to smoke other than home.

Some towns even have outside smoking bans!!!

[Fraulein]

I can't believe there are places that still sell cigs for $21.99 per carton.

Yep, that's what I pay at Kroger! I have never bought a carton of Marlboros at any of the standard retail stores in Tennessee or Georgia for more than $30.00! Never. Right now I could also go and get a carton of Marlboros at any of the local Exxon Tigermarkets in downtown Nashville for $24.99.

The south sounds better and better.

I love the South. I wouldn't want to live anywhere else!

Even if we get cigs for a good price we have very few places to smoke other than home.

Here in Nashville nobody has EVER said a word to me about smoking. No nasty looks. No lectures. Nothing. There are smoking sections at most all of the restaurants. In fact, there's even a smoking section at the Captain D's!

[honeygrl]

""When the governor signed the bill into law he said it would play an important part in our aggressive efforts to prevent minors from purchasing cigarettes on the Internet," Kevin Quinn, a spokesman for the governor, said yesterday. "

So how are minors getting credit cards to buy stuff online?

"Quinn also acknowledged that it's a way for the state to protect the tax revenue it gets from sales of cigarettes in stores and other establishments within New York's borders. He said the state expects to take in just under $1 billion from the taxes this year. "

There is the real reasoning. Greedy bastards.

All you poor smokers up in NY just move on down to GA or AL. We'll southernize you and you'll be in better company. I think these greedy NY officials need a good freep.

[honeygrl]

"I wonder if that affects loose tobacco also?
If not, another reason to stuff your own. "

Yep. it sounds like new york will now be a great market for those "make your own cigarette" machines. 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.

[honeygrl]

"I can see it now, cigarette outlets on the borders of New York. Just like liquor stores do outside of dry counties. "

Bet that would be a great business to start right now. You could make a fortune.