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More Texas Tobacco Tax Woes

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  #26  
Old March 2nd, 2010, 06:23 PM
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Default Re: More Texas Tobacco Tax Woes

Quote:
Originally Posted by ZenSilk View Post
it's a state sales tax, so you only get taxed if you live in texas.
So then have a buddy that lives in another state order it and ship it to you. LOL

But.. SHHHHHHHH.. i didnt say this. LMAO
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  #27  
Old March 2nd, 2010, 06:59 PM
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Default Re: More Texas Tobacco Tax Woes

Quote:
Originally Posted by Special K View Post
Does hookah-shisha not charge it up front? Or at all? I havn't ordered from them in a long time.

I think if you order via Texashookah, you don't see it charged (except 8.25% sales tax) and then you get a call/e-mail if it applies to you saying, "Yo, the Tax Man cometh!"
yeh they only charge you sales tax not tobacco tax my friend ordered from h-s last week and tax was about $3 or so
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  #28  
Old March 2nd, 2010, 07:18 PM
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Default Re: More Texas Tobacco Tax Woes

Quote:
Originally Posted by Special K View Post
Does hookah-shisha not charge it up front? Or at all? I havn't ordered from them in a long time.

I think if you order via Texashookah, you don't see it charged (except 8.25% sales tax) and then you get a call/e-mail if it applies to you saying, "Yo, the Tax Man cometh!"
I asked them and made sure 3 times before I got off chat. All they charge is sales tax. What I don't understand is why.

This is not sales tax for those that don't know. We get 8.25% added for that. This is a tax strictly on tobacco, it may be called sales tax, but I call it tobacco tax.

50g= $3
100g= $6
250g= $15

So you order 3 250g of Nak at $10. You add an additional $45. So your $30 of Nak just turned into $75.

Now if we order outside of Texas there is no tax. If you live outside of Texas and order from Texas it will not effect you.
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  #29  
Old March 2nd, 2010, 08:28 PM
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Default Re: More Texas Tobacco Tax Woes

Food for thought. Say I order stuff for you from my account I live in Maryland. And have it shipped to your house I'm assuming in Texas. Would I get charges for the extra tobacco tax?
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  #30  
Old March 3rd, 2010, 10:20 AM
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Default Re: More Texas Tobacco Tax Woes

Quote:
Originally Posted by zha28 View Post
Food for thought. Say I order stuff for you from my account I live in Maryland. And have it shipped to your house I'm assuming in Texas. Would I get charges for the extra tobacco tax?
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.

EDIT: Well obviously my assumption was wrong. Just would make mores sense the way I stated it. Wacky tax that nobody likes is ridiculous.
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Last edited by CaptHowdy; March 3rd, 2010 at 11:08 AM.
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  #31  
Old March 3rd, 2010, 11:00 AM
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Default Re: More Texas Tobacco Tax Woes

Quote:
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:

Quote:
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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  #32  
Old March 3rd, 2010, 11:17 AM
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Default Re: More Texas Tobacco Tax Woes

Quote:
Originally Posted by CaptHowdy View Post
I asked them and made sure 3 times before I got off chat. All they charge is sales tax. What I don't understand is why.
Quickly scanned the tax code. Section 155.0211(e):

Quote:
A change in the tax rate in effect for a state fiscal year that occurs in accordance with this section does not affect taxes imposed before that fiscal year, and the rate in effect when those taxes were imposed continues in effect for purposes of the liability for and collection of those taxes.
In essence, if Hookah-shisha is selling tobacco that was received before September 1, 2009, or whatever the applicable date was, they pay the tax applicable at that time.
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  #33  
Old March 3rd, 2010, 11:28 AM
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Default Re: More Texas Tobacco Tax Woes

Quote:
Originally Posted by Special K View Post
Quickly scanned the tax code. Section 155.0211(e):

In essence, if Hookah-shisha is selling tobacco that was received before September 1, 2009, or whatever the applicable date was, they pay the tax applicable at that time.
So what your saying is get it while the gettins good.
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  #34  
Old March 3rd, 2010, 11:43 AM
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Default Re: More Texas Tobacco Tax Woes

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Originally Posted by CaptHowdy View Post
So what your saying is get it while the gettins good.
Hah! Yea I guess so. However, getting ain't good in TX right now.
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  #35  
Old March 3rd, 2010, 12:28 PM
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Default Re: More Texas Tobacco Tax Woes

Ok so let's get really nutty and go this route.

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.

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.

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.
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  #36  
Old March 3rd, 2010, 12:54 PM
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Default Re: More Texas Tobacco Tax Woes

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

Quote:
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.

Quote:
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.

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

Quote:
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.
Chaching.

Quote:
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.
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  #37  
Old March 3rd, 2010, 12:56 PM
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Default Re: More Texas Tobacco Tax Woes

Oh, and the tax amount goes up every September 1 for the next 4 years. It's currently $1.10 an ounce. Next Sept. 1, $1.13, then $1.16, then $1.19 and finally $1.22.
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