California Prop 56 - Hidden Vape Tax
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For California residents take advantage of stocking up now for I'm sure the State will find a way to close up the hole and/or go directly after you.
As for business's without a CA presence the State may complain but there is zero legal obligation for companies without any presence in CA to be a CA Taxman.
No they can't. They can request them but they can't force a business to give them over. Ca law only applies and can be enforced in ca. Only federal law applies to interstate commerce. @Rossum here on these forums has been dealing with this for a while in his business and just adds the letters to the round file.
CA got me years ago on out of state cigarette sales. Out of state retailer was forced into giving up all sales records. This may answer your question-
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*sigh*
Luckily, it only applies to products containing nicotine--at least for the time being. Hardware is exempt.
Being legally obligated to do something doesn't mean you have to do it. It just makes it somewhat risky not to.
Being legally obligated to do something doesn't mean you have to do it. It just makes it somewhat risky not to.
I know. But I like to sleep in my own bed.
Not taking any chances at this point in my life.
Yep.
Keep in mind though that what I produce and sell isn't in any way federally regulated or subject to any special taxes aside from the normal Sales & Use tax.
Various states did manage to get sales records for cigarette sales from out-of-state vendors. So "tobacco products" might be a special case. Firearms-related items probably are as well; vendors in that field tend to be extremely careful about obeying state & local restrictions.
Without an Order from a Court, in all practicality, No. They Can't.
But that's Not they way they usually Obtain Sales Records when a OOS Seller will not Voluntarily release sales records to them when tobacco is involved.
They way CA's BOE does it is it contacts another States Tobacco Licensing Agency (or if there Isn't a State Tobacco Licensing Agency, the FDA) and ask them to contact the Seller.
Now the Seller has a Problem. Because the Registered Letter they now receive has their own State Seal at the Top of it. And Round Filing those can lead to a Bad Day in Court.
Because when you get a License to Sell Tobacco in a State, you agree to Provide your Sales Records on request to your State. And the FDA can request Sales Records from Anyone who sells a Tobacco product.
This State Agency to State Agency cooperation is based on that, Cooperation. And some States don't like to Cooperate with other States because it is viewed as them doing All the Leg Work, and getting Little in Return.
You are just not Usually going to see this Unless the Seller has some Black Marks against them. Like a Selling to a Minor. Or if they have had some Possible Tax issues of their Own.
Being legally obligated to do something doesn't mean you have to do it. It just makes it somewhat risky not to.
I know. But I like to sleep in my own bed.
Not taking any chances at this point in my life.
You are also legally obligated to pay Sales Tax to your State with "anything" that you buy out of State. How many do that and how enforceable is it?
Well, Amazon was forced to collect taxes for the State of CA.
Anyway, I agree with Rossum that when it comes to ATF (
) and other substances now legal in some states but still illegal in others, the rules and the zeal to enforce them may be different.Because they have some fulfilment centers (Warehouses there) and if it's shipped from those they collect the Sales Tax. But if it is shipped/fulfilled out of the State they do not.Well, Amazon was forced to collect taxes for the State of CA.
Anyway, I agree with Rossum that when it comes to ATF (
That only applies to third party vendors. If it's sold by amazon themselves then they have to collect Ca sales tax no matter which of their warehouses ship it
Cig sales are federally regulated and states can use existing law to get distribution records from vendors. It usually goes through the BATF. Firearms and their accessories have a similar disclosure law.
From everything ive read, those laws are very specific and would have to be rewritten (not just amended) to include vapor products.
No, but they can lie. Many folks who get the letter or phone call step in line. If they're ignorant or their lawyer's focused on risk aversion, the State's threats can be successful.
From my understanding Amazon received a good tax rebate from the cities where they opened their initial distribution warehouses in CA. These cities benefited because they received a portion of the sales tax. They were financially strapped plus they had high unemployment. Having a warehouse in their city gave them sales tax revenues plus employment for their residents. I would guess that the biggest piece of the pie though goes to the State.
Since Amazon opened distribution warehouses in CA I now find that most of my purchases gets delivered by a white mini van and not UPS. On a rare occasion a package gets shipped and delivered by UPS. Sometimes it starts out with UPS however at some point in transit it is handed over to the post office for final delivery — and for the life of me I don’t know the purpose of this.
Since Amazon opened distribution warehouses in CA I now find that most of my purchases gets delivered by a white mini van and not UPS. On a rare occasion a package gets shipped and delivered by UPS. Sometimes it starts out with UPS however at some point in transit it is handed over to the post office for final delivery — and for the life of me I don’t know the purpose of this.
I know part of the reason on shipping, this past December they lost on their stocks due do shipping, so now they are trying new shipping options along with having their own plane like FedEx.
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