How does taxation on vaping products work?

[ChelsB]

I have heard that in some states the tax is automatically added to the order, but have also heard that it's on the honor system and up to the buyer to claim the purchase. So which is it? Or is it dependent on which state you live?
Also, are taxed collected based on the state where the item is ordered or where the item is being shipped?


Sent from my iPhone using Tapatalk

 

[puffon]

If I order from any product, and the vendor is based in FL, I get charged the normal sales tax.
So far e-cig sin taxes have not been enacted here yet.

 

[daviedog]

I live in Fl too, it's Catch as catch can. Some venders charge sls tax & some don't.
Depends on reciprocal agreements between the States..

 

[Eskie]

If you order from out of state, you're supposed to include it on your state tax returns as "unpaid" state sales tax. Generally, that's true on everything you order from another state (depends on state law). In NY you can simply select an amount that's based on your income, say you make $30,000, you might have to put down $50. If you decide to put down less than that, you could be compelled to produce your receipts, cc statements and whatnot to prove where your lower figure came from. Again, this is a state issue so what happens in one may not apply in another.

If I order anything from a NY vendor, I am charged state sales tax as part of the sale.

 

[DC2]

Taxation on vape products works however your state decides that it works.

 

[NU_FTW]

Works like this, go to the unemployment offices, cut a hole in your pocket, place all money in pocket with hole, walk out.

 

[classwife]

Google for your state "out of state purchases" and "online purchases"

"Use Tax"

 

[OlderNDirt]

Expanding on @classwife 's correct post (as it pertains to the state of Nebraska anyway), use tax is the uncollected sales tax on any purchase by a resident of the state that sales tax should have been collected. Since it is owed and was not collected and submitted to the state by the seller, the end user (ergo, use tax) is responsible and on their honor to complete the form and submit the tax on those purchases. Every resident willingly complies with this system (nudge, nudge, wink, wink). Normally, the sales taxes are due to the state in which the purchaser took possession of the items purchased.

As far as any current/future actual vape taxes, that is all in flux at this time. Only safe bet is every state will do whatever they can to get their cut.

 

[NU_FTW]

Expanding on @classwife 's correct post (as it pertains to the state of Nebraska anyway), use tax is the uncollected sales tax on any purchase by a resident of the state that sales tax should have been collected. Since it is owed and was not collected and submitted to the state by the seller, the end user (ergo, use tax) is responsible and on their honor to complete the form and submit the tax on those purchases. Every resident willingly complies with this system (nudge, nudge, wink, wink). Normally, the sales taxes are due to the state in which the purchaser took possession of the items purchased.

As far as any current/future actual vape taxes, that is all in flux at this time. Only safe bet is every state will do whatever they can to get their cut.

Bah, recently i have been informed that state tax is going to be enforced by Amazon (in Nebraska)

 

[puffon]

Bah, recently i have been informed that state tax is going to be enforced by Amazon (in Nebraska)

That started collecting tax in FL a few years ago.
The reason was they opened a warehouse here.

 

[Rossum]

Long-standing principle: If the company that sells you a product has a nexus (i.e. some sort of physical presence) in your state, they must collect and remit sales tax on sales made in that state. If they have no nexus, the collecting and remitting sales taxes on sales to people in that state is optional.

 

[leftyandsparky]

Bah, recently i have been informed that state tax is going to be enforced by Amazon (in Nebraska)

Yep! If they put a warehouse in your state you get tax added to your order, happened here in Alabama and it started this past November.

 

[leftyandsparky]

I'm waiting on the day when the mail carriers became tax collectors, just to make sure the state gets their cut. Sounds crazy, I know but a lot of changes have happened that we never thought would.

 

[DaveP]

If they'd use that tax to repair federal and state roads I'd gladly pay it. Ga doesn't repaint the lines until they disappear in the rain. Lately, they've been repainting state routes in our area. Funny thing is, I can't remember the last time they did that. Paint must last forever!

I-75 through Macon is a bumpy road, except for the part they redid a few years ago. We were supposed to get a Spaghetti Junction project at I-16/I-75 in 1995, but the neighborhood associations around the interchange didn't like the flyovers in the plan and took the state to court. The state just took the money and spent it in Atlanta. I think that junction is still on the top ten most dangerous interchanges in America.

You'd think that states would love vape stores. Tax HAS to be paid on a face to face retail sale.

Amazon has been adding tax to my orders for a while in Ga. There's a huge Amazon warehouse in Atlanta. The upside is quick shipping even on non-prime orders.

 

[r77r7r]

Some out of state don't care. Up to residents here to report. Other try to hard to cover their ..... Someone from here bought from Halo, I think and they charged the 40% floor tax in addition to
the 6% state tax.
Oh well, what's one state...

 

[OlderNDirt]

Bah, recently i have been informed that state tax is going to be enforced by Amazon (in Nebraska)

Hard to "like" your post!
We've been informed of that as well. No idea if Amazon has any presence in Nebraska.

Long-standing principle: If the company that sells you a product has a nexus (i.e. some sort of physical presence) in your state, they must collect and remit sales tax on sales made in that state. If they have no nexus, the collecting and remitting sales taxes on sales to people in that state is optional to the seller as of today.

FIFY

 

[DaveP]

I'm waiting on the day when the mail carriers became tax collectors, just to make sure the state gets their cut. Sounds crazy, I know but a lot of changes have happened that we never thought would.

IMHO, tax collection at the sales level should be on the seller. Voluntary payment of sales tax to home states isn't likely to succeed unless vendors submit quarterly reports of sales to 50 states. That's not going to happen without federal law to force it. State governments have no power over out of state vendors, so they put it on the backs of their citizens.

The easy option would be to federally force sellers to charge their own state tax on out of state sales. That's not an option. Buyers would just take their business to the states with the lowest rate.

The Feds won't do this because of the 10th amendment rights of states.

 

[leftyandsparky]

IMHO, tax collection at the sales level should be on the seller. Voluntary payment of sales tax to home states isn't likely to succeed unless vendors submit quarterly reports of sales to 50 states. That's not going to happen without federal law to force it. State governments have no power over out of state vendors, so they put it on the backs of their citizens.

The easy option would be to federally force sellers to charge their own state tax on out of state sales. That's not an option. Buyers would just take their business to the states with the lowest rate.

The Feds won't do this because of the 10th amendment rights of states.

I know, it's a crazy idea but I wouldn't be shocked if it happened!!

 

[aikanae1]

It's easy for credit cards to report sales directly to state depts. They do it now for all "tobacco" purchases. I'm pretty sure that will include vaping products at some point now that vaping is considered a "tobacco", even if the state doesn't at the moment. Most states have a least one legislator and more, looking at the sales thinking "hmmm..." and doing the math.

Now if your in a state like Calif, you'll need an accountant to explain their tax on vape products. It's not a simple percentage on sales. Every state is different. Check with CASAA. Join if you haven't already.

Vapers need to visit state offices and start running for offices.
Sent from my LGLS992 using Tapatalk

 

[OlderNDirt]

Sales tax, like any other tax, has become such a monster it is impossible to come up with a reasonable method of collection in this day of internet sales. It not only would require installing a system for 50 states, but every village, town, city in Nebraska can enact its own city sales tax. Even if a system could be put in place today, the maintenance and upkeep would be a nightmare without one national organization updating it monthly, if not daily.

I've been out of it too long now, so wonder if Amazon is also collecting city sales tax within each state and if not, are "we" required to report and submit those uncollected city sales taxes via use tax?