How would the state of PA know if someone in PA ordered vape supplies from another state and had them shipped to PA? This seems totally unenforceable to me.
How would the state of PA know if someone in PA ordered vape supplies from another state and had them shipped to PA? This seems totally unenforceable to me.
Totally enforceable. Companies are required to charge the applicable tax rate for those states that require it. Technically, a company in Florida should be taxing the appropriate rate for Pennsylvania and forwarding those tax revenues to the state when they do their taxes. If a company doesn't do that, and they're caught keeping those proceeds when tax time rolls around, it's not going to be a pretty picture when the state/feds are finished with 'em.
Companies outside of PA are NOT responsible for collecting the 40% tax.
Sorry, I should have been more clear:
If an individual within PA orders from a vendor outside of PA and has the product shipped to PA... How would the state of PA ever even find out? I can't imagine the vendor having any legal obligation to report their sales to PA.
Totally enforceable. Companies are required to charge the applicable tax rate for those states that require it. Technically, a company in Florida should be taxing the appropriate rate for Pennsylvania and forwarding those tax revenues to the state when they do their taxes. If a company doesn't do that, and they're caught keeping those proceeds when tax time rolls around, it's not going to be a pretty picture when the state/feds are finished with 'em.
Based on the precedent set by the Supreme Court in Quill Corp. v. North Dakota, I disagree.Totally enforceable. Companies are required to charge the applicable tax rate for those states that require it. Technically, a company in Florida should be taxing the appropriate rate for Pennsylvania and forwarding those tax revenues to the state when they do their taxes. If a company doesn't do that, and they're caught keeping those proceeds when tax time rolls around, it's not going to be a pretty picture when the state/feds are finished with 'em.
Yeah, they can ask. That doesn't mean they'll get.They can. They can ask any company for their sales records. Same way people get caught importing cigarettes.
Based on the precedent set by the Supreme Court in Quill Corp. v. North Dakota, I disagree.
Where did you get that info? From my understanding, the bill was never voted on let alone read during last years session, meaning it's dead. From the info I gathered it now has to be re-introduced next week.Did some checking since nothing heard in awhile. Seems that the PA House has voted 19-4 to kill the tax totally. PA Senate to vote to kill the tax Jan. 23-27 (next week). If it gets past the Senate it goes to PA Gov. for autograph...I guess losing 70 out of 300 PA vape shops since Dec. end has hit a nerve... Fingers crossed. Checking was prompted by some online retailers not selling to PA residents and finding out that there are also Manufacture / Distributor / Retailer license fees involved. Not to mention who pays what in taxes and when.....
It was the finance committee that voted to repeal it. It still needed a house vote. Unfortunately, the full house never even considered it during the October session. I haven't heard any updates, so I would assume it's stalled for the foreseeable future.
You are all correct.... HB 2342 was 19-4 to repeal in full from House Finance and replace with a 5 cent per milliliter e-liquid tax instead. I think my late night reading got the best of me... Call it HOPE....Fingers still crossed.