Note: The DearEsq free 'ask a lawyer' site is offered as a free informational service to the public and is not intended as legal advice. Laws vary from state-to-state, and in addition every situation is unique, and relevant facts may not be known. The answer to the question posed below may not apply to in your state or to your situation. For legal advice in your state and your situation you should consult with an attorney in your state who is familiar with the rules and laws in your state.
“Good Evening, I recently purchased cigarettes over the internet. Toady I have received a bill from the New Jersey Division Of Taxation stating that I owe $3410.00. Am I liable for this. Is this not a privacy issue, especially if these records were supeoned by the state? They want the money in 30 days or they are threating a judgement. What are my options?”Most states impose an excise tax on tobacco, liquor, and certain other products. Online research suggests that New Jersey’s tax is $2.40 per pack, making it the second most expensive cigarette tax in the country. (Did you really buy 1400 packs of cigarettes?) Those taxes are collected by retailers at the time of purchase, along with sales taxes and any other applicable taxes. Many out-of-state retailers will not charge those taxes when shipping products to other states, but that doesn’t mean the taxes aren’t owed. Indeed, most states also prohibit any attempt to avoid such taxes through “importing” such goods into the state.
Question: Some retailers turn over sales records to state agencies upon request. In some cases, state tax authorities have sued retailers and gotten the sales records through the litigation. If the records were obtained through a subpoena, there’s very little you can do. The retailer may have breached a privacy promise to you, but many privacy policies include provisions saying that they will turn over business records when required by government authorities or courts.
Answer:
Whether or not you have any recourse against the retailer, you may very well owe those taxes. If you believe the taxes have been calculated incorrectly, or believe that you should otherwise not be paying such taxes, you may need to check with an either a lawyer or an accountant (or ideally, both) who has familiarity with New Jersey excise tax issues. The Bar Association in your county may be able to refer you to such a specialist. www.abanet.org
