Online Sales "Use Tax"?

Originally Posted by alley00p

One of my co-workers used to order his cigarettes from indian reservations with no taxes at all (Michigan also has a .75/pack tax on cigarettes and 26% on the wholesale price of cigars and other tabacco). Our Governor, Jenny Granholm filed suit on all of the online cigarette vendors, requiring them to turn over any Michigan resident's sales records.

Shortly after this event, my co-worker received a letter from the State Treasurer, telling him that he owed the state $300 in taxes and penalties. And on top of that, they told him that he was in violation of Act something or other, and if he did this again, he would be prosecuted.

wow!