New York smokes out cigarette tax cheats

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Viper GTS

Lifer
Oct 13, 1999
38,107
433
136
Originally posted by: maziwanka
Originally posted by: virtuamike
Not good. Can you imagine the legal precedence this sets for other internet sales?

Anyone with law knowledge in here to provide some insight? Sounds to me like the NY Dept of Finance is just bullying people into paying up.

yea. i agree with this not being good.

what about electronics that we sometimes buy out of state to avoid taxes (especially when there's free shipping). should we have to pay taxes on those items as well?

Technically, yes.

Viper GTS
 

Hammer

Lifer
Oct 19, 2001
13,217
1
81
Originally posted by: Viper GTS
Originally posted by: Nitemare
I'd wipe my ass with the bill. NY doesn't have a pot to piss in. There is no way they can collect state sales tax on purchases made in other states.

Actually, that is incorrect.

Companies are only required to collect tax if they have a business presence in the state, but the tax is still due. You the consumer are obligated to keep track & remit payment.

Viper GTS

this is correct. i'm sure all of us are guilty of this though. it would suck for them to come back in the future and demand it. i hope, if they do this, they offer some sort of amnesty first.
 

maziwanka

Lifer
Jul 4, 2000
10,419
1
0
Originally posted by: Viper GTS
Originally posted by: maziwanka
Originally posted by: virtuamike
Not good. Can you imagine the legal precedence this sets for other internet sales?

Anyone with law knowledge in here to provide some insight? Sounds to me like the NY Dept of Finance is just bullying people into paying up.

yea. i agree with this not being good.

what about electronics that we sometimes buy out of state to avoid taxes (especially when there's free shipping). should we have to pay taxes on those items as well?

Technically, yes.

Viper GTS

damn. hahaha. i learn something new everyday.
 

Originally posted by: Hammer
Originally posted by: slick230
What's the difference if the bought their coffin nails online or drove to Virginia with a U-Haul and came back with it full of cartons? Would NY still try to come after them in the second scenario? That's pretty fvcking retarded.

actually, that's illegal (he uhaul thing). it's smuggling. the mob did this for cash in NY/NJ. they used semis though and it was more than 1 truck-full.
Difference is the mob "smuggled" across state lines in order to sell them for a profit, not for personal use.

This whole scenario is ridiculous and I'm surprised (or mabey not taking into account the members we have here) that people arn't more outraged than they are. I think most of you fail to see the implications of the states actions. I think much of that blindness has to do with the fact that it's a "sin tax" and most of you upstanding moral warriors don't have a problem with imposing their will on others.

The issue instantly transcends from a "smoking issue" to a unfair taxation issue. We will see how these tax bills pan out in court.
 

NakaNaka

Diamond Member
Aug 29, 2000
6,304
1
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I love crazy high NY cig taxes. That, combined with the new no smoking in bars has led to a huge decrease in smokers, according to studies done.
 

dman

Diamond Member
Nov 2, 1999
9,110
0
76
Originally posted by: kranky
Originally posted by: slick230
What's the difference if the bought their coffin nails online or drove to Virginia with a U-Haul and came back with it full of cartons? Would NY still try to come after them in the second scenario?

It would be the same thing.

Actually, this is no different than people who don't pay "use tax" on Internet purchases. Every state that has a sales tax also has a "use tax" which applies to items bought from out-of-state which had no state sales tax charged. More and more states are putting a line item on their income tax forms for people to report the "use tax".

We got nabbed on this buying furniture. out of state to FL Apparently FL checks/tracks the delivery companies manifests very closely now. Even though the delivery company was a different company than the purchasing company. We got a letter about 4-5mo's afterwords asking us to submit our sales tax or proof we paid sales tax in the other state (which we didn't). End result we paid up.
 

isasir

Diamond Member
Aug 8, 2000
8,611
0
0
Originally posted by: Viper GTS
Originally posted by: maziwanka
Originally posted by: virtuamike
Not good. Can you imagine the legal precedence this sets for other internet sales?

Anyone with law knowledge in here to provide some insight? Sounds to me like the NY Dept of Finance is just bullying people into paying up.

yea. i agree with this not being good.

what about electronics that we sometimes buy out of state to avoid taxes (especially when there's free shipping). should we have to pay taxes on those items as well?

Technically, yes.

Viper GTS

Yeah, it was even a question on TaxCut last year (or perhaps TurboTax, or both). There were quite a few threads here last year bitching about how NY was especially big on wanting taxes from online purchases.

I wonder thought if there ever will be a huge attempt to collect these taxes. IMO, it would be a significant blow to online purchases.
 

IndieSnob

Golden Member
Jul 7, 2001
1,340
0
0
Originally posted by: Amused
Originally posted by: agnitrate
How does the government have any right to tax internet purchases unless the vendor was in the same state as the buyer?

-silver

Read your state's laws. All states I know of say you must report your mail-order purchases and voluntarily pay sales tax.



Do you know if that only deals with mail order/internet purchases or? I know when I lived back in Spokane, Wa (which borders right on Idaho) people were driving to Idaho to purchase cigs from state run stores or reservation smoke shops. The Washington State Patrol decided to stop people driving back in from Stateline to charge them with tax evasion. About a year later the state supreme court threw it out saying it was unconstitutional. Of course now I don't recall if the searchers were unconstitutional or the having to pay tax fines.
 

dman

Diamond Member
Nov 2, 1999
9,110
0
76
Originally posted by: IndieSnob
Originally posted by: Amused
Originally posted by: agnitrate
How does the government have any right to tax internet purchases unless the vendor was in the same state as the buyer?

-silver

Read your state's laws. All states I know of say you must report your mail-order purchases and voluntarily pay sales tax.



Do you know if that only deals with mail order/internet purchases or? I know when I lived back in Spokane, Wa (which borders right on Idaho) people were driving to Idaho to purchase cigs from state run stores or reservation smoke shops. The Washington State Patrol decided to stop people driving back in from Stateline to charge them with tax evasion. About a year later the state supreme court threw it out saying it was unconstitutional. Of course now I don't recall if the searchers were unconstitutional or the having to pay tax fines.

I'd guess the searches were unconstitutional. In the case of furniture above, we could have chosen not to pay the tax... and I'm guessing the state would either have to get the records from the company we purchased it from (which may or may not be legal) or they may be able to pull some crap, like finding what the typical retail price is and charge us tax + fines back on that. In any case, legal or not, fighting it would cost more money than paying what you legally owe.

As said above, just because most folks do not pay the use tax, does not mean it isn't the law. I think it sucks that they enforce it. Also sneaky that they are cross referencing the shipping manifests with delivery recipients and then reporting it to the department of revenue, probably all hinged around the DOS Patriot Act provisions too. How long until they tap into FEDEX / UPS / USPS db's and require declarations on all shipments in/out of states... like customs... I see that coming down the road.

At least we don't have to pay state income tax here in FL...

 

vi edit

Elite Member
Super Moderator
Oct 28, 1999
62,387
8,154
126
Like as mentioned, if Newegg crumbled under pressure and released their purchase records a WHOLE LOT of individual comsumers and businesses would be in deep doodoo over unreported purchases.

Or, how about Dell Home purchases on PC's and accessories?
 

TheLonelyPhoenix

Diamond Member
Feb 15, 2004
5,594
1
0
Originally posted by: Doggiedog
Sure you can do other things that are bad for yourself but with smoking you affect others through second hand smoke.

Indeed. This is why you can get a 'no smoking' section ANYWHERE.
 

mugs

Lifer
Apr 29, 2003
48,924
45
91
The amount of misinformation and whining in this thread amazes me. Do you people just say things without having any idea if it's correct or not?
 

BigJ

Lifer
Nov 18, 2001
21,335
1
81
Originally posted by: vi_edit
Like as mentioned, if Newegg crumbled under pressure and released their purchase records a WHOLE LOT of individual comsumers and businesses would be in deep doodoo over unreported purchases.

Or, how about Dell Home purchases on PC's and accessories?

100% agree with you. This is a huge, huge deal. How many of us have spent thousands of dollars at Newegg or Dell per year and haven't paid a cent in taxes? The people who do not see a huge problem with this are naive at best.

Joe Schmo who spent $10,000 at Newegg in NY now has to cough up another $850+ for NYS sales tax. Not to mention all the people who buy from Amazon.com and everywhere else.
 

PingSpike

Lifer
Feb 25, 2004
21,732
561
126
Yeah, this is really setting a bad precedent. And with the economy limping along the way it is and state budgets getting tighter...it doesn't take a genius to see where this very well could lead.
 

BigJ

Lifer
Nov 18, 2001
21,335
1
81
Originally posted by: PingSpike
Yeah, this is really setting a bad precedent. And with the economy limping along the way it is and state budgets getting tighter...it doesn't take a genius to see where this very well could lead.

And then how far back are they going to go? Hell could they hit us for all our internet purchases in the last 8+ years? If they do, people would be put thousands of dollars in the hole.
 

Brackis

Banned
Nov 14, 2004
2,863
0
0
I think what is being so sorely missed here is why they are going after these taxes, because their budgets are so enervated as it is. Perhaps if people spent more time being concerned with how the federal and state budgets are set, the average citizen would be able to avoid more taxes (which are already law mind you, just are rarely paid. The States are simply following laws already in place)
Next time we should think before dropping billions of dollars on worthless federal contracts, corporate welfare for big businesses, propaganda programs etc... and then make a fuss when our tax money is spent in ways that benefit well-off corporations and indivduals rather than it costing a few more bucks to inhale tar.
 

kranky

Elite Member
Oct 9, 1999
21,014
137
106
Originally posted by: mugs
The amount of misinformation and whining in this thread amazes me. Do you people just say things without having any idea if it's correct or not?

I don't. And if you ever see that I post wrong information, please call me on it.
 

OutHouse

Lifer
Jun 5, 2000
36,413
616
126
Originally posted by: CheapArse
Originally posted by: AmericasTeam
The article also mentions that cigs cost $7 a pack in NY. Thats just crazy.

Not really, should be more.

no, if the price of smokes continues to be taxed like they have been it will create a blackmarket.
 

PingSpike

Lifer
Feb 25, 2004
21,732
561
126
Originally posted by: Brackis
I think what is being so sorely missed here is why they are going after these taxes, because their budgets are so enervated as it is. Perhaps if people spent more time being concerned with how the federal and state budgets are set, the average citizen would be able to avoid more taxes (which are already law mind you, just are rarely paid. The States are simply following laws already in place)
Next time we should think before dropping billions of dollars on worthless federal contracts, corporate welfare for big businesses, propaganda programs etc... and then make a fuss when our tax money is spent in ways that benefit well-off corporations and indivduals rather than it costing a few more bucks to inhale tar.

That would require rational thinking and at least a vague understanding of government functioning.
 

Brackis

Banned
Nov 14, 2004
2,863
0
0
Originally posted by: PingSpike
Originally posted by: Brackis
I think what is being so sorely missed here is why they are going after these taxes, because their budgets are so enervated as it is. Perhaps if people spent more time being concerned with how the federal and state budgets are set, the average citizen would be able to avoid more taxes (which are already law mind you, just are rarely paid. The States are simply following laws already in place)
Next time we should think before dropping billions of dollars on worthless federal contracts, corporate welfare for big businesses, propaganda programs etc... and then make a fuss when our tax money is spent in ways that benefit well-off corporations and indivduals rather than it costing a few more bucks to inhale tar.

That would require rational thinking and at least a vague understanding of government functioning.
God forbid we impose logic and rational thinking on the public. Jesus, along with the constitution state we should be stupid and closeminded! Rah Rah Rah

 

TitanDiddly

Guest
Dec 8, 2003
12,696
1
0
Originally posted by: virtuamike
Not good. Can you imagine the legal precedence this sets for other internet sales?

Anyone with law knowledge in here to provide some insight? Sounds to me like the NY Dept of Finance is just bullying people into paying up.

:Q Uh oh.