During a portion of 2005 and 2006 I purchased a total of 18 cartons of cigarettes online for a discounted rate. These were not sold, they were for my own personal use, also for my boyfriend.
I received a bill today in the mail for almost $500 for sales and excise tax. The sales tax total is $60.00, but the excise tax is $420.00. What exactly is the excise tax and how is the state of NJ able to charge me the excise tax and is there anything I can do to reduce these charges?
I just wanted to get some answers before I called and paid anything.
2007-09-05 03:15:48 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I take it you live in NJ? Sorry to have to tell you this, but if you buy cigarettes there are taxes on the cigarettes that you buy. If the seller doesn't collect the excise tax from you (which if it sold at a discount rate the seller probably didn't), and your state finds out about it (I am seeing more questions in yahoo answers regarding this issue) then they will send you a bill for the uncollected taxes (possibly also interest and penalties). Nothing you can do to reduce the charges.
NJ rate is 2.40 per pack effective 7/1/2005.
2007-09-05 03:23:44 · answer #1 · answered by Anonymous · 0⤊ 0⤋
That's the tobacco excise tax that you are liable for. Just because you are able to buy untaxed smokes doesn't exempt you from the tax. The state has a right to the tax revenue and you have no option but to pay it. Obviously NJ has figured out a way to track those purchases and is going after you for the taxes due. Pay up!
2007-09-05 03:50:10 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You did not really purchase the cigarettes on line at a discount rate, you bought them at the regular rate from where they were being sold from, I'd guess North Carolina where the state tax is minuscule. Now your state is able to determine who is skirting state tax and is after you for the tax charged form smoking them there.
2007-09-05 06:04:59 · answer #3 · answered by Anonymous · 1⤊ 0⤋