This really stinks for cigarette smokers who bought cigarettes online.
They didn’t pay a state sales tax in their state and now the government is coming to them demanding the tax payment
This is happening years after the sales were made and a lot of people don’t even smoke any longer but still are asked to pay what is owed.
Some companies offered cigarettes online and they avoided the state tax through this kind of sale but not really.
In Arizona for example the Department of Revenue claims that people who bought this way still owe $20 for every carton of cigarettes they bought online since 2006.
A nice lady from Arizona,
Who thought she would save a few bucks, got a bill for $4,299.20 just for buying cigarettes for a two year period.
Buyers never expected this reaction from the state and are trying to determine how to act.
Some even got phone calls concerning this fiasco.
The problem is if it is only cigarettes then it is limited, but if they expand into all of the sales for various products made by Amazon, EBay etc., then it will become an unbearable fiasco for the whole country.
The Arizona cigarette mess adds up to a luxury tax of 10 cents per cigarette and that means $2.00 a pack, therefore $20.00 a carton.
On top of that they are hit with a use tax of around 6% of the regular sale price of a carton.
The law is a gruesome thing for most folks who can’t afford to be hit this hard. Are people now going to avoid all online sales? If you get hit for every purchase that you made online or shipped from one state to another with no sales tax, it could add up to a fortune for some folks.
If you are in business and bought a lot of your tools or product out of state, online, and did not pay tax, that could end up being as high as tens of thousands of dollars and as high as hundreds of thousands of dollars in some cases.