Tuesday, November 20, 2007

"A Failure....to Collect-icate"

Well, there's another $million gone...

27 News has found despite a state law requiring internet cigarette retailers and other direct marketers of cigarettes to register with the state and agree to collect state taxes, not one business has done so since the law's inception in 2005. (Duhhhh.)

"We have no submissions," wrote Department of Revenue Deputy Tax Division Administrator Lili Best Crane, in response to a request from 27 News for information on the permits required to directly market cigarettes in Wisconsin. (Duhhhh.)

Wisconsin's cigarette tax is slated to increase by $1 to $1.77 per pack. Trade group representatives for merchants selling cigarettes at retail outlets have predicted the increase would motivate some purchasers to defect to the internet in an attempt to avoid paying sales tax. (Duhhh.)

In 2004, Department of Revenue Auditor Christopher Roy projected sales tax collections as a result of requiring direct cigarette marketers to obtain permits and submit taxes on their sales would total $1.1 million by 2007. (Whaddya wanna bet that that "projection" has been SPENT already?)

Anyone 'thinking' that cigarette buyers are going to patronize the high-priced places is nuts. When DarthDoyle moves to force US internet retailers into compliance, the cigarette buyers will patronize off-shore vendors.

Too bad, Brandon.


Anonymous said...

don't the Indians - I mean Native Americans - I mean the Indigenous Peoples - make out on this new tax as well? They don't have to pass on the full tax when cigs are sold at the casinos, so the white people can get them cheaper, and the casinos rake in more profits? Is this accurate? If so - it's another blatant payoff from DarthDoyle to the tribes.

Dad29 said...

Like bandits.

They don't pay the same amount in sales tax as do gas stations (E.G.) and price as close as they can to fully-taxed retail.

I tell you, offshore is the way to go.