Updated!! Pennsylvania: 40% tax = game over for vape
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Good grief! So when someone moves to FL and brings all their stuff they owe tax on it because they bought it elsewhere ? How do they enforce that?
What about all the snow birds that live up north every summer. They're supposed to pay tax on everything they bring back to Florida in the fall?
That's going to be the first noticeable consequence of the deeming to many unaware vapers - dedicated vape shops shutting down because they can't get a tobacco license or it takes a long time, and prices going up at the shops that remain. All long before the two year window closes.
Yes I think all states are in for a real wake up call because of tobacco product laws already on the books.
Some have jumped the gun and I expect many are chomping at the bit for 8/8 to come.
The vape shop that I go to just informed me yesterday that they are planning on closing their doors before October 1st. They were one of the first to open up in our county and one of the most popular! What our "leadership" in Harrisburg is doing is nothing short of extortion! It goes to show us weather we vape or not that our "leadership" is not here for or health, safety, and wellbeing but rather to line their pockets with big tobacco and big pharma dollars while passing down the hardships of incompetence to us! I understand tax tax tax, there's two things guaranteed in life, death and taxes.....but 40% up front for shops????
Word has it there will be a rally at the state capitol in Harrisburg to voice our concerns to the elected "leadership" in September. I plan on attending once more information comes out, I hope anyone in Pa that can make it do so too!
One thing about travelling to another state to get your gear that needs to be realized is that not everybody has the means or the transportation to accomplish this. If you don't live near a highway or the state line then the 1, 1.5 hour driving time just got that much longer. Folks with medical conditions would have a harder time as their conditions would not tolerate being in the car for hours on end, and to do so bi weekly or monthly will eventually take it's toll on them. Sure it'll be easy for those that can afford to do so but please remember, our economy isn't even a shadow of what it used to be, and we have a large population of older folks, especially to the folks in rural, mountain areas of the state....which is a very large chunk!
Word has it there will be a rally at the state capitol in Harrisburg to voice our concerns to the elected "leadership" in September. I plan on attending once more information comes out, I hope anyone in Pa that can make it do so too!
One thing about travelling to another state to get your gear that needs to be realized is that not everybody has the means or the transportation to accomplish this. If you don't live near a highway or the state line then the 1, 1.5 hour driving time just got that much longer. Folks with medical conditions would have a harder time as their conditions would not tolerate being in the car for hours on end, and to do so bi weekly or monthly will eventually take it's toll on them. Sure it'll be easy for those that can afford to do so but please remember, our economy isn't even a shadow of what it used to be, and we have a large population of older folks, especially to the folks in rural, mountain areas of the state....which is a very large chunk!
Nope, copied and pasted from Fla dept of revenue;
Is there an exception?
Yes. Items you purchase and use in another state, territory of the United States, or the District of Columbia for 6 months or longer before bringing them into Florida are not subject to use tax. Items you purchase and use in another country do not qualify for this exception.
States can get you 6 ways from Sunday on taxes. Our daughter moved from PA to CA ... had to pay hundreds of dollars in tax when she registered her car in CA. Moved from CA to DE ... same thing. Moved from DE to CO ... same thing.
My wife and I are retiring in the next couple of years. To that end, we made a list of "livability" factors, then ranked each state. The State of Michigan wound up with the highest score — for us. YMMV, of course.
After a lifetime of living in the Chicagoland area, we're sick of decades-long big-blue-government messes. So, our bias is for small-town living. And Hillsdale, population about 8,300, wound up at the top of the heap for us. Again, YMMV — and probably does.
Will do, I'm heading out the door to pick my father up and take him up to our shop that we like. I'll see what they are saying about it.
In the meantime, I'll leave this here.
Pennsylvanians Against Vape Tax Public Group | Facebook
I love my country too. Including brothers/sisters in distressed pennsylvania. Yet it gets harder & harder to love an 'Entity' that is beating the Hell out of you. And for no reason. This isn't for tax revenue. This is being done to kill vaping,,with Malice..
NO, the tax being talked about is not on the stuff one previously purchased that you move to PA with you. Its on stuff you purchase out of state when currently living in PA. Same as with many other states.
I do not think it would be cost effective for them to do that in the case of individuals. However the red flag for this is a $0 on line 25 of your PA-40, or a $0 on the use tax section of your PA Sales & Use tax return if you own a business. I made that mistake and it resulted in the pleasure of a week-long full audit of the Sales & Use tax accounting for my business back in 2008. They left me with a bill for about $5k in back Use taxes, plus about $1k in interest/penalties.
Anyway, the reason I say it wouldn't be cost-effective for individuals is that 6% (or 7% if you live in Pittsburgh or Philly) of whatever you've spent on out of state purchases of vape gear in the past simply would not pay for the manpower required to do such audits.
Online purchases of cigarettes and big-ticket items that the feds have records of are a different matter. In the case of cigarettes, that $1.60 a pack in excise tax adds up fast, and when the ATF forces vendors to give up their records, it's easy enough for the Commonwealth to send you a bill for back taxes.
Anyway, I can't stress this strongly enough: Never claim that you owe them $0 in use taxes. Always pay them something. Almost everybody buys some stuff on the internet from out-of-state vendors who don't charge PA Sales Tax. They know this, and claiming $0.0 is like waving a red flag in front of an angry bull.
Sorry to say bnrkwest, but you need to check again, New Mexico calls their tax a Compensating tax instead of a Use Tax and there is a special form you are suppose to use to pay your sales tax on items purchased over the internet or out of state.
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