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Smokers asked to cough up taxes for Web buys
CNET News.com ^ | February 18, 2005, 3:31 PM PST | Alorie Gilbert

Posted on 02/21/2005 6:46:21 AM PST by Zon

Hundreds of Michigan residents are getting a big surprise this tax season--hefty tax bills for cigarettes they bought online over the past four years.

The state sent the bills to 553 residents last week after subpoenaing 13 online tobacco shops for names of Michigan customers and their order histories, a Michigan Treasury Department spokesman Caleb Buhs said on Friday. The tax bills are based on information from just one store, and the state expects to collect more names from the others.

Collectively, the people receiving this first round of bills owe the state $1.4 million, an average of $2,500 per person, Buhs said. They have until March 14 to pay. 

"At its most fundamental level, this is an issue of tax fairness," State Treasurer Jay B. Rising said in a statement. "It is only right that out-of-state vendors, who conduct business only online and at arms length, follow the letter of the law. These taxes are collected by brick-and-mortar businesses in Michigan, and Internet vendors should not be allowed to skirt their responsibility."

Michigan, which levies a $2 tax on every pack of cigarettes, collected $993 million in tobacco taxes last year, Buhs said.

eSmokes, one of the top tobacco sellers on the Web, cancelled thousands of orders to Michigan customers after hearing about the tax crackdown, an eSmokes representative said. The representative would not discuss whether the store has been subpoenaed by Michigan or any other state.

Michigan did not disclose which companies it has subpoenaed.

Other states, including California, Washington and Wisconsin, have launched efforts to collect tobacco taxes from residents who dodged them online. A 2002 report (click for .pdf) from the U.S. General Accounting Office said most states tax the sale of cigarettes, and that online sales have cost them millions of dollars in lost revenue.

Internet shops that don't tell states about tobacco purchases by people other than licensed distributors are flouting a federal law known as the Jenkins Act. Laws that exempt online retailers from collecting sales taxes do not apply to tobacco excise taxes, the GAO report said. 


TOPICS: Business/Economy; Crime/Corruption; Extended News; Front Page News; US: Michigan
KEYWORDS: addiction; cigarette; ecommerce; funnyheadline; michigan; pufflist; smokers; tax; taxes; tobacco; tobbaco; wackyheadine; wackyheadline; wasteofmoney
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To: an amused spectator
Believe it or not, I'm not really against taxes.

I am. The dead of night thing isn't new. They need to be watched like a hawk or owl.

281 posted on 02/21/2005 4:58:09 PM PST by Raycpa
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To: Raycpa
The tax on freon was an example of such a successful tax.

Yeah, right. Try googling Black Market Freon.

282 posted on 02/21/2005 5:01:44 PM PST by Sandy
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To: Raycpa
The dead of night thing isn't new.

No, it isn't. The really bad points thing is, though.

283 posted on 02/21/2005 5:09:13 PM PST by an amused spectator (your property: guilty until proven innocent)
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To: CSM
Do you consider a smoker who quits to avoid paying the tax a criminal?

LOL One more cigarette tax hike in Indiana, and I'm making a wetsuit out of nicotine patches, and those A-holes who blew away a billion-dollar state budget surplus in 2 years can kiss my hairy butt!

284 posted on 02/21/2005 5:32:54 PM PST by FierceDraka (The Democratic Party - Aiding and Abetting The Enemies of America Since 1968)
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To: Elmer Piddlestone
In some jurisdictions in Florida:
It is illegal to sing in a public place while attired in a swimsuit....

LOL! Way to smack-down that bean-counting Statist there, Elmer! I believe that during the War of Independence, people of that mindset were referred to as "Tories" and "Loyalists".

285 posted on 02/21/2005 5:43:25 PM PST by FierceDraka (The Democratic Party - Aiding and Abetting The Enemies of America Since 1968)
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To: Raycpa
No, they are simple cheats who wrap the flag around themselves when caught.

Well, considering that some of the Founders initially gained their fortunes through SMUGGLING to avoid TAXATION by the CROWN, I proudly wrap myself in BOTH FLAGS:


AND

And furthermore, IMHO, we are in desperate need of another one of these:


16 Dec 1773 : Boston Tea Party

286 posted on 02/21/2005 5:57:46 PM PST by FierceDraka (The Democratic Party - Aiding and Abetting The Enemies of America Since 1968)
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To: Chef Dajuan
Whattamatta? Afraid you'll lose business if tax laws are dramatically curtailed and the burden of excessive taxation removed from our backs?

OUCH! Good slam there, Chef!

My dad and sister make money on the side by preparing tax forms, but they've both told me that they wouldn't NEED to prepare tax forms on the side if they got to KEEP more of their original salaries.

BTW, I LOVE these FR threads where we have two sides that vehemently disagree, because I LOVE a good scrap! (Dad used to pick arguments with me to sharpen up my debating skills, God bless him!)

287 posted on 02/21/2005 6:05:54 PM PST by FierceDraka (The Democratic Party - Aiding and Abetting The Enemies of America Since 1968)
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To: Hunble
... For two full weeks, we lived in a land which had no smoking rules or regulations, and it was a paradise!

Reminds me of the time an old girlfriend and I flew to Cancun, Mexico, and I blazed up right in the airport.

She gave me a shocked look and said, "You can't smoke in the airport!"

To which I replied, "Hell, this is Mexico, baby! There ain't no law down here!"

Ever tried any of Sammy Hagar's Cabo Wabo-brand tequila? Heaven in a bottle, and at $40 a pop, it had better be! ;-D

288 posted on 02/21/2005 6:09:59 PM PST by FierceDraka (The Democratic Party - Aiding and Abetting The Enemies of America Since 1968)
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To: G.Mason

I've found that the Farmer's Gold brand suits my Wife and I best. One of these days, I'll have to get an ounce of that Peter Stokkebye's. I found a nearby shop that sells it pretty fresh.


289 posted on 02/21/2005 6:31:22 PM PST by RandallFlagg (Roll your own cigarettes! You'll save $$$ and smoke less!(Magnetic bumper stickers-click my name)
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To: -YYZ-

RUSH fan, are ya? Seeing your screen name made me fire up 2112 and A Farewell To Kings.


290 posted on 02/21/2005 6:35:09 PM PST by FierceDraka (The Democratic Party - Aiding and Abetting The Enemies of America Since 1968)
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To: Gabz; humble
While I don't condone intentionally blowing smoke in the face of others.........I do understand your reason.

I condone doing whatever it takes short of violence to get some self-righteous prick out of my face. And that includes puking on the shoes of any wanna-be Carrie Nations who object to my smoking and drinking.

/ got a nasty head cold, using the old British method of curing it: Go to bed, and place your hat on the bedpost. Drink whiskey until you can no longer see the hat...

Cheers

291 posted on 02/21/2005 6:45:49 PM PST by FierceDraka (The Democratic Party - Aiding and Abetting The Enemies of America Since 1968)
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To: Mears

Well if you live close enough, you should go to NH. The prices are minus all the taxes. for premiums 28. to 32.00 depending, for a carton. You can do much better when they have specials, or if you buy discount or generic brands.


292 posted on 02/21/2005 6:58:26 PM PST by gidget7
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To: FierceDraka

Yeah, you know it.

Attention all planets of the solar federation
We have assumed control
We have assumed control


293 posted on 02/21/2005 7:20:19 PM PST by -YYZ-
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To: gidget7

Thanks! I'm in the Boston area and it would be a nice day trip.

Probably be able to find a place and have a cigarette with my lunch.Now THAT would be lovely.


294 posted on 02/21/2005 8:08:00 PM PST by Mears ("Call me irresponsible".)
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To: Mears

You're quite welcome!


295 posted on 02/21/2005 8:20:31 PM PST by gidget7
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To: Raycpa
And they thought that it'd just be about cigarettes. HAH!

Use tax are as old as the sales tax and have always been payable by residents purchasing out of state. The only new thing is smokers thinking they are above the laws just because they cannot resist smoking.

Does that mean that they should go after only smokers instead of going after other online purchasers?

If you ask me, they should be going after the lawmakers for their flagrant disregard for the laws; not the people.
296 posted on 02/21/2005 9:45:17 PM PST by RandallFlagg (Roll your own cigarettes! You'll save $$$ and smoke less!(Magnetic bumper stickers-click my name)
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To: Raycpa

How about getting rid of all taxes...except maybe a 4 or 5% income tax.

And use the revenue to fund the military and keep the infrastructure repaired and that's it.

Get rid of all social programs and entitlement. If the people on FDR's Ponzi scheme can't get by? Tough. They should have planned better for their retirement. I started working when I was 16, almost 2 years ago, and the month after I started I opened a Roth IRA and I contribute to it bi-weekly. Its not my fault they didn't think past the ends of their noses.

I hate all welfare, too. These morons should have paid attention in school. Then they'd have a decent job.

But why should I have to pay for these people's lack of foresight and stupidity? F**K 'em.


297 posted on 02/22/2005 7:21:03 AM PST by Chef Dajuan (this ain't rocket science, you know. so use your knob! -emeril lagasse)
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To: Zon; editor-surveyor; farmfriend; sauropod; Jim Robinson; SheLion; Gabz; RandallFlagg; Wolfie
No imposts between the various states; No EX POSTFACTO laws???

Guys, The above link is to an article about past transactions being taxed by the state. Is or isn't the U.S.A. Constitution with it's amendments the "LAW of the land"???? Peace and love, George.

298 posted on 05/05/2005 3:21:28 AM PDT by George Frm Br00klyn Park (FREEDOM!!!!!!!!!!!!!!!!!!!!!!!!)
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To: George Frm Br00klyn Park; Just another Joe; Madame Dufarge; MeeknMing; steve50; KS Flyover; ...
Thanks for the link! I am getting ready to read it.

Need another cup of coffee.

299 posted on 05/05/2005 5:48:59 AM PDT by SheLion (Trying to make a life in the BLUE state of Maine!)
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To: George Frm Br00klyn Park
 RICO PART TWO

RICO vs. Jenkins

04.20.2005

An appeals court won't reconsider its decision barring the Justice Department from seeking $280 billion in a lawsuit against cigarette companies.

In a vote Wednesday, the U.S. Court of Appeals for the District of Columbia Circuit divided 3-3 on whether to reconsider the case, according to a Justice Department spokesman.

Officials said the government has not decided whether to appeal the decision to the Supreme Court.

300 posted on 05/05/2005 5:54:12 AM PDT by SheLion (Trying to make a life in the BLUE state of Maine!)
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