N.Y. asks online cigarette buyers to cough up tax

News.com ^ | 1/14/2004 | Reuters

[Zon]

N.Y. asks online cigarette buyers to cough up tax

New York City Mayor Michael Bloomberg said Friday that smokers who bought cigarettes over the Internet had better be prepared to cough up taxes they tried to avoid by going online.

"The law says you got to pay your taxes. The handful of people who don't are just stealing from the rest of us," Bloomberg said in a weekly radio address.

The city's finance department this week sent letters to 3,700 smokers asking them to fork over $1.3 million in city taxes from Internet tobacco purchases. 

The annual loss to the city from online tobacco sales totals $40 million, according to Joanna Perlman, a finance department spokeswoman. Some individuals owed as much as $10,000.

"If you have a bill for $10,000 for cigarette taxes, you're a dealer, you're not just smoking," Bloomberg said.

"The finance commissioner is required by the city charter to enforce the law. It's against the law to buy something out of state and bring it in and avoid sales tax," he said. 

[Jaysun]

If this is true why limit it to cigarettes. Under Bloomberg's theory ANYTHING ordered on the Internet and delivered to his taxing jurisdiction should be subject to Sales Tax. Don't think that will fly very far.

That's my thought exactly. He'd have to raise taxes again to pay for the skyscraper full of collection letter writers.

[patton]

But what you describe is already the law, in almost every state.

Where have you been?

[drt1]

I've been right here. Jeesh man.

[RandallFlagg]

Roll Your Own: My Experiences (Saving tons and smoking less) ^

[Fruitbat]

"The law says you got to pay your taxes. The handful of people who don't are just stealing from the rest of us," Bloomberg said in a weekly radio address.

What a pompous ass!

Where's Randy Moss when you need him...

[patton]

Weeeel, it is called a "use tax." See, in most states, the theory is that you are to itemize everything that you bought during the year out of state, on your state income tax form, and then pay applicable sales/sin/whatever taxes on those goods. Including internet sales, from LandsEnd, or whatever.

Personnally, I have never bought anything out of state.

But it could happen.

[Alberta's Child]

Technically, that might be correct. But under most circumstances they can't possibly enforce this law. New Jersey, for example, is filled with shopping malls that cater to a huge New York customer base that looks to save money with the lower sales tax across the river.

[Alberta's Child]

What next? NY State Customs offices at all state boundaries?

Don't laugh -- they tried something like this a few years ago in New Jersey. They had NYC tax revenue agents driving around New Jersey shopping malls recording the license plates of New York customers who were "evading" New York's sales tax by shopping out of state and bringing their purchases back to New York (yes, this is exactly what the law says).

It came to an end when the New Jersey shopping malls wised up to the situation, realized that NYC tax officials have no jurisdiction in New Jersey, and threatened to have them all arrested for stalking their customers.

[Clemenza]

Clemenza to Albany: F-ck you!

[RandallFlagg]

Yeah! What you said!

[taxesareforever]

better be prepared to cough up taxes

Finally, something men can talk about when the doctor asks them to turn their head and cough.

[agitator]

Yeah, I was born there. It's great.

http://www.theempirejournal.com/albany_woman_forcibly_injected_w.htm

[Jack Deth]

The cigarette tax in New York (And other states) have more or less forced smokers to cross state lines. Deal with the Black Market. Or go online to purchase said items.

The reason Bloomberg is screaming now is that all of the perceived (assumed) taxes from the sale of cigarettes has not happend. For close to ten years now.

Unless the BATF wishes to invade a foreign country. Where most on-line sites are headquartered. Or raid individual homes. I believe that a polite but firm "Pound Sand!" is in order to Hizzoner.

Jack.

[StockAyatollah]

Can you NY smokers envision just how much more pleasure than smoking, you could derive from quitting enmasse, and watching Bloomberg begging New Yorkers to go back to smoking for the sake of the government that needs the taxes they put on smokers, a hell of a lot more than smokers need the big government that can't live without tobacco taxes?

Nice plan. But it won't do any good. If all smokers quit, Buttberg would just find some other group (alcohol consumers?) to torment and tax to death. I admire the NY smokers circumventing this confiscatory tax of their scum bag politicians by going to other states or the internet. This must be having an impact or Buttberg wouldn't be having this hissy fit.

[RandallFlagg]

I believe that a polite but firm "Pound Sand!" is in order to Hizzoner.

What you New York smoking FReepers ought to do is write a polite letter to these people expressing your disgust over this.

And sift a bit of tobacco into the envelope before closing it up.

[torchthemummy]

"The city's finance department this week sent letters to 3,700 smokers asking them to fork over $1.3 million in city taxes from Internet tobacco purchases."


$351 in tax per scofflaw. The bad PR this gets will only encourage, of course, a much stronger black market.

[RandallFlagg]

Off the subject, but I just did an inventory.

Before I go to work for the regular four-day, twelve-hour shift, I load up on cigarettes and crank out as many as I can with what little time I have. I have several little plastic containers that can hold 40 cigarettes each. I filled up two of them and stuck one in my work jacket.

Well, it's not the third day of work and just out of curiosity, I did an inventory of my cigarettes. There's still twenty-two cigarettes in the plastic box and two in the metal pocket case.

I've only smoked EIGHTEEN cigarettes in THREE DAYS!!!

I used to go through a pack a day.

Fellow FReeper smokers, ROLL YOUR OWN!!!! You will smoke less and save $$$!!!!!

[EGPWS]

Fellow FReeper smokers, ROLL YOUR OWN!!!! You will smoke less and save $$$!!!!!

My preference is 1 mg tar and < 1 mg nicotine, can I roll THEM at a savings?

[RandallFlagg]

Oh, I have no idea. I just smoke what I like (Legally). They have all kinds of tobacco, though. Full flavor, light, ultralight, menthol, light menthol.

My Wife's experimenting to find what she likes.

[EGPWS]

Oh, I have no idea. I just smoke what I like (Legally). They have all kinds of tobacco, though. Full flavor, light, ultralight, menthol, light menthol.

Ultra light is what I prefer.

Damn, after quiting smoking for 18 years, I had an aortic dissection, (and survived) and was told I had the heart of an 18 year old when it happened so I figgered' for my health I had better start smoking again, and it was the best damn decision I made! However, the stress augmenting my choice from the anti's may kill me yet! ; )