Originally Posted by rosc2112
AFAIK, there's no tax being paid on shisha tobacco when purchased online out of state (they sure aren't sporting a tax stamp like local bought otp.)
Sugar, molasses, honey, etc, do not cost that much, especially wholesale. Packaging? They can put the stuff in a sandwich baggie for all I care, if that's the lame excuse for the high prices =)
tobacco taxes which are different from local state sales taxes are being figured in, for example, tobacco tax in CA is 45% and in TX 40%, those are figured into your final price, for example, if AF is being sold to a distributor at approx $4 per 250g, the distributor will have to charge the wholesaler 45% on top making it 5.80 to break even, then that wholesaler needs to mark it up to make a profit, what would a fair markup be (you decide $1 maybe) $6.80 to the retailer who needs to mark it up. retailers like to double their money at least, it should cost $13+, that's fair right? but then you factor in competition so the price is less than that. None of this has to do with sales tax which in CA is another 7.75%. hope that makes sense.