Oct 282009

Can a State Charge Cigarette Tax on Cigarette you brought out of State?

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I got a tax bill for Cigarette I brought on the internet, in another State.

Yes! (if you did not pay taxes in another state on those cigarettes) In fact, California has sent bills to 12,000 taxpayers this year who purchased cigarettes over the internet and paid no sales tax. This is not just cigarettes though- technically anything you buy over the internet or through the mail for which you are not taxed is taxable by California. It’s just too hard to track individual spending so only companies are subject to those rules- it’s called a "use tax".

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5 Responses to “Can a State Charge Cigarette Tax on Cigarette you brought out of State?”

  1. Jack says:

    Yes they can….just like they can charge sales tax on a car you bought out of state when you go to register it.
    References :

  2. nwnativeprincess says:

    yea, it is there new way to make sure they get there money.
    References :

  3. George K says:

    Not if the cigs have a tax stamp.
    References :

  4. cpa says:

    Yes! (if you did not pay taxes in another state on those cigarettes) In fact, California has sent bills to 12,000 taxpayers this year who purchased cigarettes over the internet and paid no sales tax. This is not just cigarettes though- technically anything you buy over the internet or through the mail for which you are not taxed is taxable by California. It’s just too hard to track individual spending so only companies are subject to those rules- it’s called a "use tax".
    References :

  5. STEVEN F says:

    You didn’t buy the cigarettes in the state the business is located, you bought them in the state you had them shipped to. Yes you are subject to the same taxes you would have paid at a store next door to your house. Most states with a sales tax also have an equivalent ‘use tax’. This means if you purchase an item and another state an bring it home, you have to pay the local taxes less any taxes paid at the time of purchase.
    References :

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