View Single Post
Old March 3rd, 2010, 12:54 PM
Special K's Avatar
Special K
Status: Offline
Hookah Nut
Join Date: Jan 2010
Location: Houston
Posts: 208
Default Re: More Texas Tobacco Tax Woes

My small comments. This isn't the type of law I generally practice so no advice! Heh

Originally Posted by DRMALIKIA View Post
If I am a tobacco retailer based in Texas and I order my tobacco from Iowa. I should not pay the Texas tax because I am purchasing the products from out of state. And since Iowa is not enforcing the tobacco tax, I do not pay the tax.
The Texas Tobacco Tax is the "sales tax" and becomes due and payable when a retailer receives tobacco that will be for the purposes of a "first sale" in Texas. It's not actually paid until they file certain reports. But, whenever they get it from Iowa, bam, tax applies.

As the tobacco retailer I can ship the tobacco, not incur the tax, as along as the tobacco is shipped to someone outside of the state.
Basically, yes, because it's not for "first sale" in Texas.

As the tobacco retailer, I must charge the tax to anyone buying from me within the borders of Texas.

This is they way I read it and if so, then the retailer should not have to pay any tax on the tobacco and thus pass it along to you as long as you do not live in Texas. If you live in Texas and are "trading/purchasing" tobacco internal to the state, you get fucked.

There is no possible way Texas can create their own internal customs department on the goods traded from inside it's borders to outside and vice versa. They can only enforce the tax on products sold within the borders.
State's do funny things. But yes, this tax applies to sales in Texas.
Reply With Quote