So, I received a letter from my state department of revenue demanding that I file a Tobacco Consumer tax return. Um, excuse me? I live in a state with NO sales tax and have never heard of this, much less received a request to file. Apparently in my state, all out-of-state sales via the internet must be reported, and residents must pay a quarterly tax. Yikes!
I contacted the number on the letter and learned that Iwan Ries had reported a purchase I made. Now, in my state, the tax is a whopping 65% on the wholesale price. But as a consumer, I don't know the wholesale price. The person I spoke with at DOR was nice enough to tell me Iwan Ries has reported the wholesale price and gave me that figure for calculating my tax. I know of no other retailer that sends these reports, so I wanted to give you all a heads up that your tax man may come calling when you order from Iwan Ries (and possibly others). And FYI if you get a tax request, you're supposed to figure your tax on all of your online out of state tobacco purchases of pipe tobacco, snuff, cigars; basically everything except cigarettes. Gah!
And no disrespect at all to Iwan Ries--they obviously take their tax compliance obligations seriously and I don't fault them for it. I just wanted to pass this along so you could all be aware and figure this in to the cost of tobacco when making your purchase decisions.
So, know your tax reporting obligations and caveat emptor!
Warning: Iwan Ries and your state taxes
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