Pa tax of $13.56 on each carton that I got. Does anyone know anything about this or received a letter also?
2007-08-08 03:28:44 · 9 answers · asked by snickers803 1 in Business & Finance ➔ Taxes ➔ United States
I take it you live in PA? If not, then you don't owe any tax. If you do live in PA, the Indian reservation probably had to report to each state who they sold cigarettes to, and PA must have received a report, and wants their money from you.
2007-08-08 03:32:03 · answer #1 · answered by Anonymous · 0⤊ 0⤋
They can't and won't charge you tax. And, since you didnt' pay tax to them (no tax stamp), you owe tax to your local government.
Believe it or not, when you buy something online and don't pay tax because it is an interstate sale, you are supposed to report it and pay tax on it to your local government (few people do). Same goes if you go out of state to buy furniture or a car and aren't charged tax at the time of the sale. With cars, they'll catch you and you pay the tax at the time you register the vehicle. Legally, whenever you bring something into your state where you didn't pay taxes on it to another state, then you are to pay tax on it. With most other things, you aren't caught unless you are reported. It's possible that the indian reservation is required to report their sales to each state, which is why you got the letter and the bill.
Had you "consumed" the cigarettes while on the reservation and not brought them to your state (or to the state the reservation was in - had you done that, technically you would have owed that state the taxes and not PA), you would not have owed any tax on them. But, the government knows that you most likely did not.
Before long, everybody will be charged tax on all online sales, too. Watch and see. I'll quit selling online, too, when I'm required to start collecting/paying sales tax on each transaction. Imagine the headache of the paperwork for reporting to not only each state, but to each locale.
2007-08-08 03:31:42 · answer #2 · answered by sortaclarksville 5 · 1⤊ 0⤋
Not specifically but this is becoming more common. By purchasing the cartons out of state you avoided the PA tax. As soon as you bring them back in to PA, you owe the state the tax you would have paid had you bought them at retail.
I read a story a couple of years ago where a couple in Indiana had received a bill for over $2000 for Indiana taxes that they had avoided by purchasing cigarettes online from Kentucky.
2007-08-08 03:34:01 · answer #3 · answered by Wayne Z 7 · 1⤊ 0⤋
Yup, you owe it, and PA has been cracking down over the last few months on people evading the cigarette taxes. There have been newspaper articles about it, and our local convenience store has a poster in the window from the state reminding people that they still legally owe the taxes if they buy the cigarettes elsewhere. There's a limit something like one carton of what you can legally bring in from out of state without paying the tax.
You tried to do an end run around the taxes and got caught. Now you'll have to pay up. Sorry.
2007-08-08 04:12:02 · answer #4 · answered by Judy 7 · 1⤊ 1⤋
Your not alone. Not sure how they are tracking you down, but PA is one of 13 states that have started collecting state sales tax on any purchase of "tax-free" tobacco products purchased over the Internet, via mail order, and from Indian reservations. A federal law requires companies that ship cigarettes across state lines to release information about the sales to taxing authorities in the state where the purchaser lives, so I'm sure it's the same with the reservations.
Pennsylvania has obtained records pertaining to about 27,000 buyers going back to the start of 2005. The state will attempt to contact all of them. Pennsylvania assesses a $1.35-a-pack cigarette tax, and 6 percent sales tax. It is sending tax forms to the on line and mail-order purchasers, and waiving penalties for those who pay or enroll in payment plans. Sounds like you have gotten away with only the 1.35 per pack cigarette tax so far, so just pay it and don't complain.
2007-08-08 03:42:53 · answer #5 · answered by tushanna_m 4 · 0⤊ 0⤋
Call up the people who sent you the letter. This is only obvious the way to resolve this matter. Not one of us can do anything to help you.
We say over and over and over and over and over and you have the idea, no two situations are the same. No two states, no two indian reservations, no two tax localities, etc etc etc etc. You get the idea.
And PS we are an accounting firm.
Have a great day.
BC Business Services, Inc.
http://www.bcbsinc.com
2007-08-11 13:08:47 · answer #6 · answered by Info@bcbsinc.com 2 · 0⤊ 0⤋
Box815,
You are saying that this smoker should not have to pay taxes and if we elect republicans then he would get away without paying taxes? The republicans need our taxes more than the dems since they got us in this never ending war. Without collecting taxes there would be no money to fund it.
And yes you do have to pay all those taxes or go to jail.
2007-08-08 03:40:33 · answer #7 · answered by James W 2 · 1⤊ 1⤋
The fact that the Indians didn't collect sales tax doesn't mean that you're not liable to pay it. ...... so if the state can find you, they'll send you a bill. You've got to pay hit, or they'll hit you for interest and maybe a penalty. If you continue to ignore it, you may find it impossible to register a car or renew your drivers license.....
Think of it as revenge for Custer.
2007-08-08 03:37:32 · answer #8 · answered by squeezie_1999 7 · 0⤊ 1⤋
I take it you're a resident of Pennsylvania.
You can't import cigarettes into another state without paying tax. Makes you want to vote Republican, doesn't it?
2007-08-08 03:32:14 · answer #9 · answered by Box815 3 · 1⤊ 2⤋