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STATE TO GO AFTER ON-LINE CIGARETTE BUYERS - COULD OTHER PRODUCTS BE NEXT?
Thursday, July 21st, 2005 -- 9:25 am
Posted by Riley Hebert-News Director
The state has announced it will pursue more than $1 million in back taxes and penalties from online cigarette customers, but experts think it might not stop there.
There’s speculation the Department of Revenue may plan to go after taxes on computers, books and other goods bought over the Internet.
The department is in the process of sending letters to 2,000 customers of one online tobacco retailer asking them to pay the 77-cent-a-pack cigarette tax, the use tax, 18% interest and fees. The use tax is equivalent to state and local sales tax and is charged on goods purchased in other states for use in Wisconsin. People who do not respond promptly will be assessed a $25-a-carton penalty and other fees.
Commerce officials said federal authorities are pushing online cigarette retailers to report sales information to state tax collectors, netting Wisconsin and other states the first list.
They say Wisconsin is being more reasonable about the matter than states such as Arizona, Connecticut and North Dakota, which are sending tax bills to customers.
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