California Prop 56 - Hidden Vape Tax
- Thread starter Haktuspit
- Start date
- th_trl_thread_readers 0
- Status
I am a California resident who just ordered 2 liters of nic from MFS and there was no tax calculated
Sent from my iPhone using Tapatalk
Sent from my iPhone using Tapatalk
I tried a few other out of state websites and no tax was charged. I even tried an in-state and no tax. I have to wonder if the State targeted Breazy much like they did with Amazon a few years back.
Now that I have calmed down I did send an email to Tyler advising that he did not answer my questions. I provided links to the BOE and quoted certain pertinent information along with the link. In addition I provided the link for on the online seminar wholesalers and distributors.
He responded very quickly with this from their blog:
"We have just changed the policy. We have been in contact with our lawyers to figure out how to go about with this new tax. We are going to stop charging the tax and have the customers file the tax on their own.
CA Prop 56 - Notice to CA customer – Breazy
Sorry for this mishaps and confusion on our end.
Tyler"
"A D
Fri, Apr 07, 17
CA Prop 56 - Notice to CA customers
CA state law requires that consumers pay the applicable excise tax directly to the state when purchasing tobacco products from a non CA based business. Breazy is not based in California, we do not have a nexus there, and we are not licensed or registered with the state. As such our California customers are responsible for paying the excise tax created by Prop 56 directly to the state.
You can find more information on how to file here:
Tax and Fee Guide for Cigarettes and Tobacco Products (Under "Filing Returns and Reports Section")"
"We have just changed the policy. We have been in contact with our lawyers to figure out how to go about with this new tax. We are going to stop charging the tax and have the customers file the tax on their own.
CA Prop 56 - Notice to CA customer – Breazy
Sorry for this mishaps and confusion on our end.
Tyler"
"A D
Fri, Apr 07, 17
CA Prop 56 - Notice to CA customers
CA state law requires that consumers pay the applicable excise tax directly to the state when purchasing tobacco products from a non CA based business. Breazy is not based in California, we do not have a nexus there, and we are not licensed or registered with the state. As such our California customers are responsible for paying the excise tax created by Prop 56 directly to the state.
You can find more information on how to file here:
Tax and Fee Guide for Cigarettes and Tobacco Products (Under "Filing Returns and Reports Section")"
Right On NotSoMini
It's Amazing, sometimes, what can happen when the Right Word goes in the Right Ear.
I'm kind of surprised no one commented on this. Are you all surprised I was not charged tax? Have stores just not updated their software to automatically charge the CA tax?
Sent from my iPhone using Tapatalk
Being so Early into this Tax, it is not that surprising that there may have been no Additional Tax shown in you Order.
Could be that Retailer is selling Existing Stock?
Or that they are just Eating the Tax on their End?
Or it could be that they are Not up to speed yet on their with their Web Site/Commerce Software?
I doubt they're taking the hit for the tax, but your other comments are entirely possible[emoji4]
Sent from my iPhone using Tapatalk
It's just Hard to Say?
For Retail e-liquids, there is a Huge Mark-Up from the Wholesale price of Ingredients. And buyers Don't like Price increases. Especially when the Price Increase is because of a Tax that they Don't think is Justified.
Also some Retailers don't want to do Anything that might make a buyer think about DIY. So If I was a Retailer, I would consider Eating at least a Portion of it for my CA Customers.
But every Seller has their Own way that they think is Best. And what they think Makes them the Most Money.
Do you happen to know if the tax is based on where it's purchased or where it's shipped to?
Sent from my iPhone using Tapatalk
If I have a "Presence" inside of California, then it Doesn't matter where I Ship to. I, as the Seller, would have the Responsibility to ensure that the CA Tax was collected. Either by my Distributor, or by Myself.
If I Don't have a CA "Presence", then I can go the Route like in Post #325. And shift the Responsibility onto the buyer.
Nice. So far Tyler has been great at responding to emails. My last response basically said it was a CYA move until they worked it out with their lawyers. I also found out the CA BOE is harassing out of state businesses for sales records so they can send out tax bills to consumers based on those records. So far no one is complying thankfully.
Does MFS have a physical location in CA? If not, they're not required to collect the tax, you're required to submit it on your own.
I don't believe that they have a presence in CA. Thanks!
Sent from my iPhone using Tapatalk
Obviously I don't understand the law enough. I thought that PA residents had to pay some ridiculous tax like 40% no matter where they ordered. I figured it would be the same for CA.
Sent from my iPhone using Tapatalk
Can the State legally force out of state businesses to provide sales records?
We have to pay the tax. If the vendor doesn't do it for us, we have to report and pay ourselves.
- Status
Similar threads
- Locked