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Michigan: States hunt down online cigarette buyers
stateline.org ^ | 5-3-05 | Kathleen Hunter

Posted on 05/05/2005 6:20:00 AM PDT by SheLion

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To: SheLion
The Virginia attorney general's office recently prosecuted two online cigarette companies (www.cigoutlet.com and www.affordablecigs.com) and discovered purchases from those two sites cost 46 states $2 million in revenue. Virginia investigators shared the names of those sites' customers with officials in other states, prompting many of the letters.

I wonder if Virginia can sue the other states for loss of revenue because they are not selling as much as they used to.

Becki

61 posted on 05/05/2005 8:21:13 AM PDT by Becki (There is hope for me. Moses was once a basket case, too.)
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To: longtermmemmory
However the internet is has a very specific federal law exemption.

Except for tobacco excise taxes which are covered by the 1954 Jenkins act - which is what they are resurrecting to justify these confiscatory practices.

62 posted on 05/05/2005 8:22:36 AM PDT by Gabz (My give-a-damn is busted.)
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To: SheLion

I remember they passed an extension of the sales tax ban.

So states could impose/extend their sales tax on internet purchases delivered to them.

The states were successful in bulying some pure etailers Amazon. (there were able to nail those with physical locations in the state)

They soon discovered they can push the out of jurisdiction seller so now they do the Sherrif of Nottingham routine on their own citizens.


63 posted on 05/05/2005 8:24:34 AM PDT by longtermmemmory (VOTE!)
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To: The Great RJ
These state lawmakers need a lesson in basic economics. The Law of Demand states that if the price goes up, the market will respond by either buying less quantity or seeking less costly substitutes. Raising the tax on cigarettes will simply cause some smokers to quit or cut down and others to seek lower cost sources like the Internet, Indian Reservations or bootleggers. I would think the cost of enforcing these higher cigarette taxes by tracking down Internet sales, bootleggers etc. probably outweighs the additional tax revenue collected.

Well, here is one alternative:

Can't stand the high taxes?

Afraid to order off of the Internet?

Then start rolling your own!!!

I roll out a beautiful carton for a little under $8 dollars.  Premiums in my state are now up to $45-$50 a carton.  Can you imagine the money I have saved over the past 4 years since I now roll my own?  It's mind boggling.

under $50.00

$5.75 a bag

$1.99 for 200 filtered tubes

 
and

Smokers United

Roll Your Own Tobacco Store

Roll Your Own Magazine

64 posted on 05/05/2005 8:26:08 AM PDT by SheLion (Trying to make a life in the BLUE state of Maine!)
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To: SheLion

Michigan is in deep financial trouble, and its answer to lack of money is to tax more and apply more regulations. Pursuing smokers for taxes is merely one sign of its desperation.

Michigan ranked dead last in creating new jobs in 2004, losing 45,000, and is near the bottom in income growth.

Our socialist loving governor, Jennifer Granholm, is pressing ahead with a European style tax boondoggle that will heap huge tax breaks on the big three automakers, while passing extra taxes onto retailers, professional services, wholesalers and thousands of small businesses.

The state has the highest corporate tax burden in the nation, according to the Tax Foundation.

The City of Detroit lost more young people age 18 to 30 than any other city in the nation.

Gov Granola also wants to impose a Marxist state land use regime on all land and businesses. It chief feature is unelected soviet councils making all land use decisions.

If you want to see what America would be like under Hillary, look at Michigan.

I'm seriously considering pulling my family and business out of Michigan.


65 posted on 05/05/2005 8:27:22 AM PDT by sergeantdave (Beer is proof that God loves us and wants us to be happy. - Benjamin Franklin)
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To: SheLion

With millions of 'illegals' working under the table the use of limited state tax enforcement resources will be going to sniffing around internet sales.


66 posted on 05/05/2005 8:31:02 AM PDT by Semper Paratus (-)
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To: Gabz

Does the internet exemption SPECIFICALLY mention tobacco?

It seems, if not, this is a conflict of law issue where the new blanket exmption would cover that. In the past the courts would say "if the legislator wanted to exempt 'x' they would have exempted'x' in the new law."


67 posted on 05/05/2005 8:31:16 AM PDT by longtermmemmory (VOTE!)
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To: Semper Paratus

It is far easier to punish a law abiding citizen than track down a difficult to find illegal.

The law is lazy.


68 posted on 05/05/2005 8:32:38 AM PDT by longtermmemmory (VOTE!)
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To: Gabz
Yes - and they are pushing for the higher tobacco taxes that are causing folks to find cheaper means of purchasing....including the black markets.

Big Pharm also hopes that by raising cigarette taxes so high, it will force people to quit therefore start buying Big Pharm Quit Smoking Remedies.  Oh yes!  Did we see this coming?

Carton of cigarettes in Maine: $45-$50

Supply of Nicorette Gum:          $49.99

  <----click on image

69 posted on 05/05/2005 8:34:00 AM PDT by SheLion (Trying to make a life in the BLUE state of Maine!)
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To: SheLion
After 30 days, Sidebottom's letter informed her that a 100 percent penalty would be added to her existing debt.

100%??? Oh, wait, it must be legal cos the state is doing it, right? I am darn tired of balancing this state's budget! I say we turn Detroit over to the Indians, cut the UP loose (they've wanted to be Wisconsin for decades) and sell some real estate on Mackinac Island. Oh, and a new govenor would help!

70 posted on 05/05/2005 8:34:31 AM PDT by blu (The Pope, the Gipper and the Iron Lady...now THAT'S a trifecta!)
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To: SheLion
Not having an outlet or employee from ME, only relieves them of the responsibility of charging and collecting tax on the states behalf.

Whether or not it relieves the consumer from paying, I don't know.
71 posted on 05/05/2005 8:36:05 AM PDT by HEY4QDEMS
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To: SheLion

Hate the sin, tax the sinner.


72 posted on 05/05/2005 8:36:55 AM PDT by eyespysomething (hmmm....)
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To: longtermmemmory
Does the internet exemption SPECIFICALLY mention tobacco?

I don't believe so.......but remember the internet exemption is in reference to SALES taxes not excise taxes - the Jenkins Act is specific to tobacco EXCISE taxes. sdo unfortunately I don't see a conflict in the laws.

It was largely ignored for decades, until states starting balancing their budgets on the backs of smokers and smokers started seeking less expensive means of purchase. Now all of a sudden everyone has remembered the long forgotten law.

73 posted on 05/05/2005 8:50:44 AM PDT by Gabz (My give-a-damn is busted.)
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To: Always Right
"Always Right" continuing his trend of being "Always Wrong".

You would rather pay $2 trillion in hidden and embedded taxes with their attendant abuses of power like this? Or would you rahter SEE exaclty how much you are paying to the government EVERY time you buy something?

Keep it civil. I haven't made any derrogatory remarks about you.

Yet.

74 posted on 05/05/2005 8:52:20 AM PDT by Dead Corpse (Never underestimate the will of the downtrodden to lie flatter.)
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To: All

I do believe that what this state is doing is illegal. I don't think these people have to pay this tax as their purchase was made outside the state even though it was made on the internet. They need to fight this instead of giving in like so many wimps. I don't smoke but if I did I would fight this to the death before paying a tax on cigs bought out of state.


75 posted on 05/05/2005 8:52:45 AM PDT by calex59
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To: SheLion

And Big Pharm is equally complicit in funding the terrorists that are targetting our men and women in the service in their push for higher tobacco taxes.


76 posted on 05/05/2005 8:57:21 AM PDT by Gabz (My give-a-damn is busted.)
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To: sergeantdave

Seeking more taxes is akin to saying

executions will continue until moral improves.



If I recall correctly, the city of detroit had a problem with people who simply abandoned realestate because it had no value.


77 posted on 05/05/2005 9:34:38 AM PDT by longtermmemmory (VOTE!)
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To: calex59
I do believe that what this state is doing is illegal.

Unfortunately, it's not.

78 posted on 05/05/2005 9:38:35 AM PDT by Gabz (My give-a-damn is busted.)
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To: calex59

I do believe that what this state is doing is illegal. I don't think these people have to pay this tax as their purchase was made outside the state even though it was made on the internet. They need to fight this instead of giving in like so many wimps. I don't smoke but if I did I would fight this to the death before paying a tax on cigs bought out of state.

Here are more threads about some states going after online taxes for tobacco products"

Internet Cigarette Sales Spark Enforcement Meeting, Possible Crackdown

NYC:New York Hits Online Sellers of Cigarettes

Smokers asked to cough up taxes for Web buys


79 posted on 05/05/2005 9:51:22 AM PDT by SheLion (Trying to make a life in the BLUE state of Maine!)
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To: SheLion

I don't know which is scarier:

1) That a state government is tracking your internet purchases.

2) That a woman would willingly have the name "Sidebottom".

or 3) That a woman named Sidebottom would be letting her Alzheimer-patient boyfriend smoke (not for health reasons but for fire safety sake).


80 posted on 05/05/2005 9:59:47 AM PDT by Tall_Texan (If you can think 180-degrees apart from reality, you might be a Democrat.)
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