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Old March 3rd, 2010, 11:00 AM
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Special K
Status: Offline
Hookah Nut
Join Date: Jan 2010
Location: Houston
Posts: 208
Default Re: More Texas Tobacco Tax Woes

Originally Posted by CaptHowdy View Post
That's a good question. My assumption is no. The billing address is in MD, which would mean you are the one buying it. Now if I purchased the tobacco and shipped it to you I would get the tax.
Your question on the "why" of Hookah-Shisha is interesting. As to the other issue of billing vs shipping, here's the excerpt from Social Smoke's website:

On September 1, 2009 Texas House Bill 2154 (Read More) went into effect raising the Texas tobacco tax by 325%. If you are purchasing tobacco in person at Social Smoke or shipping tobacco to a destination inside Texas you will be billed for the Texas tobacco taxes due on your order. To calculate the Texas tobacco tax due on your order, multiply the quantity of each size of tobacco by the rates listed below. For more information please contact Customer Service.
Assuming SS is correct, as long as the destination is not in TX, the tax would not apply. This is consistent of the manner in which many ethnic jewelers do not charge sales tax to you if you provide an out of state address for the jewelry to be "shipped" to. I haven't looked at the Tax code personally, however.
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