Online Sales "Use Tax"?

alley00p · 12-06-2008, 02:19 PM

In Michigan, you are supposed to claim anything that has been purchased online and pay the state's 6% sales tax. This is pretty much universally ignored by most Michigan residents.

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.

So, I waiting to see what will happen regarding all of the online sales I've made this year. But I'm not voluntarily planning to declare anything! Our local B&M's already have to charge the 26% tax along with the 6% sales tax on any cigars that are sold.

borndead1 · 12-06-2008, 02:26 PM

Quote:

Originally Posted by alley00p

Our local B&M's already have to charge the 26% tax along with the 6% sales tax on any cigars that are sold.

My friend, it is 36%, not 26%.

12-06-2008, 03:09 PM

Quote:

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!

chippewastud79 · 12-06-2008, 03:12 PM

It has been discussed before. Legally you are supposed to pay sales tax on everything you buy in the state you purchase it from. So buying hundreds of dollars of cigars from a site (try thepartysource.com

) you are supposed to call your state and tell them you owe XX% of sales tax. Nearly everyone does not do this, but I am sure there are some out there who do.

On a similar note, if you pay more sales tax in a year than income tax you can then use that when you file taxes. My accountant told me that, but then again she is my fiance, so maybe she is a liar

12-06-2008, 03:30 PM

If they take

as payment, sure.

Jay Hemingway · 12-06-2008, 04:59 PM

Quote:

Originally Posted by Darrell

If they take

as payment, sure.

12-06-2008, 05:09 PM

Starting with the last two posters, thanks for posting your intentions so publicly and thanks for the heads up.....

your respective states appreciate it.........they'll be in touch

View Poll Results: Will you declare your out-of-state "use tax"?
Yes	1	4.00%
No	24	96.00%
Voters: 25. You may not vote on this poll

12-06-2008, 02:19 PM	#1
alley00p Adopted MassHole Join Date: Oct 2008 First Name: Charlie Location: HOCKEYTOWN! Posts: 1,770 Trading: (41)	Re: Online Sales "Use Tax"? In Michigan, you are supposed to claim anything that has been purchased online and pay the state's 6% sales tax. This is pretty much universally ignored by most Michigan residents. 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. So, I waiting to see what will happen regarding all of the online sales I've made this year. But I'm not voluntarily planning to declare anything! Our local B&M's already have to charge the 26% tax along with the 6% sales tax on any cigars that are sold. __________________ Alley00p - I may be a FOG, but I'm still trying to dance!! Just don't trip over my cane!

12-06-2008, 03:12 PM	#4
chippewastud79 Fatter than you! Join Date: Oct 2008 First Name: Larry Location: A little place called home. Posts: 5,397 Trading: (44)	Re: Online Sales "Use Tax"? It has been discussed before. Legally you are supposed to pay sales tax on everything you buy in the state you purchase it from. So buying hundreds of dollars of cigars from a site (try thepartysource.com ) you are supposed to call your state and tell them you owe XX% of sales tax. Nearly everyone does not do this, but I am sure there are some out there who do. On a similar note, if you pay more sales tax in a year than income tax you can then use that when you file taxes. My accountant told me that, but then again she is my fiance, so maybe she is a liar __________________ If we weren't supposed to eat animals, then how come they're made of meat? You can never have too many cigars, they are like an investment in good times.

12-06-2008, 03:30 PM	#5
Darrell Guest Posts: n/a	Re: Online Sales "Use Tax"? If they take as payment, sure.

12-06-2008, 05:09 PM	#7
Resipsa Guest Posts: n/a	Re: Online Sales "Use Tax"? Starting with the last two posters, thanks for posting your intentions so publicly and thanks for the heads up..... your respective states appreciate it.........they'll be in touch