Why do people get by with charging sales tax on the full price for alchohol,and tobacco products?

Question

These products have a tax added into the price, so those of us who use these products,are paying tax on tax. Isn't this against the law? I know some body is going to say quit smoking. lol

It may not be called tax on tax,but that is exactly what it is, and our sales tax is 9.75%.

I'm glad I don't live in Maine. I thought it was rough down here.

Answer 1

In Maine, the state tax on a single pack of cigarettes is presently $2.00 - soon to be $3.00.
A sales tax of 5% is added when a pack is purchased. The tax on alcohol has remained the same for the last 5 years.
It is quite apparent that more legislatures value their three martini lunches more than a smoke break by those who choose to smoke.

As an interesting side note, our new democratically controlled, federal congress just took up a bill to reopen discussion on placing tobacco under FDA control - like congress doesn't have bigger fish to fry - like - oh, perhaps, THE WAR IN IRAQ???

Answer 2

They are not getting by with anything. They are legally obligated to charge sales tax on all items, assuming there is sales tax in your state.

The tax which you speak of is an exise tax which is independent of sales tax and get's paid directly to the government. You are not paying tax on tax. You are paying sales tax on the end price of the product.

Answer 3

It depends on state laws.

Politicians love "sin taxes" on alcohol and tobacco because the opposition is often so muted and addicts will pay to get their fix no matter what.

Besides, most of the taxes on alcohol are federal taxes. The state gets it's cut on sales taxes.

Answer 4

One is a general excise tax the other is sales tax. You pay double tax on many things you often don't know it. Look at your service bill from a power company or sewer company or other state run programs.

Answer 5

I WON'T SAY IT: The reason is we are trying to force you to do it.