Legal Question

[HarvInSTL]

Here is the problem with whole thing. When you buy something off the internet you have to pay the shipping and handling plus tax right there. They bill you credit card right away. You don’t get something days later saying that you now have to pay the tax. Sounds like a funny story to me and I wouldn't trust it at all

Normally for any purchases made online you only have to pay tax if they have a business pressance in your state.

If I walk into a local cigar shop and buy a $6 cigar, my cigar really didn't cost $6. It might have cost $5.35 plus the tobacco tax. Its easier for a retailer to include the tobacco tax into the cost of a cigar because they are taxed based upon their cost of the cigars. You then pay sales tax upon that $6.

If I buy a $6 cigar online and they don't have a business pressence in my state I don't pay the state tobacco tax, yet I legally should.

I guess we should explain tax a little bit better. (I'm using my home state of Missouri as an example) http://www.dor.mo.gov/tax/business/tobacco/

On cigarettes in the state of missouri there is a cigarette and other tabacco tax of 17 cents per pack of 20 cigerettes and 21.25 cents on packs of 25.

The other tobacco tax, which would include cigars is 10% of the manufacturer’s invoice price before discounts and deals.

This is in addition to the state sales taxTaken directly from their FAQ, and to my knowledge all other states follow the same idea

If I purchase cigarettes or other tobacco products from the Internet, are the taxes still due?
Yes, you would be required to report your purchases to the department and pay applicable cigarette or other tobacco product tax and state and local sales/use taxes.

The benefit of us purchasing online is a.) normally lower costs, b.)technically we don't pay sales tax, yet legally we should, c.) normally selection online is far greater than selection in store

I pay 50-70% less online than I would in store, so even if I have to pay that 10% tobacco tax I'm still coming out way ahead than if I bought locally.