Products Tax/Consumer Use notice...

[veeref]

Mods, feel free to delete or move this if its inappropriate, but I don't think it violates forum rules.

I received a notice from the State of Colorado asking me to remit payment for cigars I received in the mail last year for the month of October. For a taxable value of $65.00, they want ~$26.00 in taxes, and a 500% penalty tax of 130.00 for a grand total of $156.67.

Now, I an going to remit payment. But, it also makes me reconsider ordering anything over the internet now, cigars notwithstanding because my state wants its share. What I'm wondering is if the retailer submitted the information or if the state of CO did some digging.

I'm all for supporting my local tobacconists, and believe me, they get their share of my money. However, I'm sure you all know that there are just certain brands/lines you cannot find locally and have to order online, but I might just cease doing so altogether.

Anyone else received something like this? I'm hesitant to post the retailer here unless the mods specifically want to know.

Regards,
Randy

 

[aquarich]

Mods, feel free to delete or move this if its inappropriate, but I don't think it violates forum rules.

I received a notice from the State of Colorado asking me to remit payment for cigars I received in the mail last year for the month of October. For a taxable value of $65.00, they want ~$26.00 in taxes, and a 500% penalty tax of 130.00 for a grand total of $156.67.

Now, I an going to remit payment. But, it also makes me reconsider ordering anything over the internet now, cigars notwithstanding because my state wants its share. What I'm wondering is if the retailer submitted the information or if the state of CO did some digging.

I'm all for supporting my local tobacconists, and believe me, they get their share of my money. However, I'm sure you all know that there are just certain brands/lines you cannot find locally and have to order online, but I might just cease doing so altogether.

Anyone else received something like this? I'm hesitant to post the retailer here unless the mods specifically want to know.

Regards,
Randy

Randy, you're better off having a BOTL brother pick up and send for you, if that's how the state wants to play the game

 

[Palmettoguy]

Did a little digging on COs tax site:

"Federal law states that distributors selling tobacco, in interstate commerce, into Colorado are required to file the PACT Act registration form. In addition, distributors should file by the 10th day of each month a memorandum or a copy of the invoice covering every shipment of cigarettes, roll your own (RYO), or smokeless tobacco made into Colorado during the previous month."

"Tobacco Penalty – If untaxed tobacco product is found in the possession of any entity other than a licensed tobacco distributor and tax has not been paid within 30 days of receipt, a penalty of 500% of the tax is due in addition to tax and interest."

If you purchased cigars, I'm wondering why the vendor submitted the info to the state since cigars are clearly exempt from reporting.

 

[veeref]

Did a little digging on COs tax site:

"Federal law states that distributors selling tobacco, in interstate commerce, into Colorado are required to file the PACT Act registration form. In addition, distributors should file by the 10th day of each month a memorandum or a copy of the invoice covering every shipment of cigarettes, roll your own (RYO), or smokeless tobacco made into Colorado during the previous month."

"Tobacco Penalty – If untaxed tobacco product is found in the possession of any entity other than a licensed tobacco distributor and tax has not been paid within 30 days of receipt, a penalty of 500% of the tax is due in addition to tax and interest."

If you purchased cigars, I'm wondering why the vendor submitted the info to the state since cigars are clearly exempt from reporting.

Where did you find that reference showing cigars exempt? Here's what I'm pulling up:

Article 28.5. Tax on Tobacco Products

Current through Chapter 5 of the 2012 Legislative Session

§ 39-28.5-102. Tax levied

(1) There is levied and shall be collected a tax upon the sale, use, consumption, handling, or distribution of all tobacco products in this state at the rate of twenty percent of the manufacturer's list price of such tobacco products. Such tax shall be imposed at the time the distributor:
(a) Brings, or causes to be brought, into this state from without the state tobacco products for sale;
(b) Makes, manufactures, or fabricates tobacco products in this state for sale in this state; or
(c) Ships or transports tobacco products to retailers in this state to be sold by those retailers.

This is the section quoted to me in this letter. It would have been nice if the retailer was required to disclose this, to tell me so I could have avoided a $130 "Tobacco Tax Penalty" and paid the state their $26. I'll make some phone calls to the state and see if they can verify who the retailer was and where they got that specific amount.

 

[CAJoe]

CA tried to do this with retailers awhile back and most of them told CA that they had no jurisdiction over them and to go pound sand. Only one that I know of turned over paperwork and people in the know here do not buy from them, although I dunno why anyone bought from them in the first place.

 

[Rupe]

I sure am glad we don't have to deal with this BS in Minnesota (yet). Best of luck in dealing with the State of Colorado on this. You might be able to get them to remove the interest and penalties with some sweet talk.

Funny how Colorado is so draconian when it comes to cigars but everyone and his brother can get a card for weed.imp1:

Rupe

 

[Gravity]

I would have a word or two with the distributor, Colorado hasn't the slightest jurisdiction over them if they are based in another state.

 

[veeref]

I would have a word or two with the distributor, Colorado hasn't the slightest jurisdiction over them if they are based in another state.

My understanding is that it's a Colorado tax "on the sale, use consumption, handling, or distribution of all tobacco products in the state."

Essentially this *#$% law states that if you purchase tobacco from outside the state and bring it in/receive it, you must pay a 40% tax once you take possession. Absolutely absurd and sounds like something California would draft, not Colorado. :bangbang:

I know a lot of people here use this retailer (which is what worries me), and I'll let you all know what they have to say and maybe why I got this letter.

 

[Skitalets]

My understanding is that it's a Colorado tax "on the sale, use consumption, handling, or distribution of all tobacco products in the state."

Essentially this *#$% law states that if you purchase tobacco from outside the state and bring it in/receive it, you must pay a 40% tax once you take possession. Absolutely absurd and sounds like something California would draft, not Colorado. :bangbang:.

Right, they have jurisdiction over you, but not over the out of state retailers. They have no right to demand that the retailers report who they sell to, and the retailer should have ignored them.

 

[Rupe]

I know a lot of people here use this retailer (which is what worries me), and I'll let you all know what they have to say and maybe why I got this letter.

Be sure and let us know who the retailer is on this. I think that a BOTL member boycott is in order.

Rupe

 

[InspektorGadget]

Be sure and let us know who the retailer is on this. I think that a BOTL member boycott is in order.

Rupe

I'm curious who the retailer was as well. :gangfire:

 

[JayD]

This totally sounds like something MA would (probably will) do.

 

[scottb01915]

This totally sounds like something MA would (probably will) do.

I agree with you here bro..I'm surprised that hasnt happened yet considering this is the most liberal state in the union and they tax us to death on everything here!!!

 

[Gravity]

I'm curious who the retailer was as well. :gangfire:

I am as well, they have no business sharing any sort of information concerning their customers to anybody, especially somebody out of state. Where would it stop for them, if somebody called them up and just asked willy-nilly for information on their customers in Washington state, would they simply hand that over? I'm really bothered by this, please keep us up to date.

 

[Alwayslit]

I sure am glad we don't have to deal with this BS in Minnesota (yet). Best of luck in dealing with the State of Colorado on this. You might be able to get them to remove the interest and penalties with some sweet talk.

Funny how Colorado is so draconian when it comes to cigars but everyone and his brother can get a card for weed.imp1:

Rupe

^^^this^^^

 

[BradMc]

My Taxman ask me if I did any out of state online purchase, I said Who Me?....

 

[CO Smokes]

I work at a shop in NJ and once a month we are required to submit forms with all out of state shipments from quantity to price. If the state decides to pull your form they can charge you all local taxes. They don't do it often from what I hear, but if your order tons of cigars over the Internet and you get "chosen" you will get hit with a major tax bill. Ordering off the Internet is great for some people (if you dont have a local B&M) but always remember that you may be held accountable for the taxes down the road.

 

[ZachF88]

oh, sh!t! I just ordered way too many cigars that I can hardly afford. They are being shipped to my home in CO. I hope I don't get taxed 40%! and get any penalties!

 

[veeref]

I work at a shop in NJ and once a month we are required to submit forms with all out of state shipments from quantity to price. If the state decides to pull your form they can charge you all local taxes. They don't do it often from what I hear, but if your order tons of cigars over the Internet and you get "chosen" you will get hit with a major tax bill. Ordering off the Internet is great for some people (if you dont have a local B&M) but always remember that you may be held accountable for the taxes down the road.

Who were you required to submit the forms to, your state Dept. Of Revenue?

 

[CO Smokes]

I'd have to check. I'm not the one who actually does the forms. I do know people who received tax bills from their state gov't. when you order online you're still paying federal taxes just not state taxes.