Explain this Tax Rate

[cigator]

Went to order $40 worth of snus from GetSnus. 5 Gotland Yellow, 5 Nick & Johnny, 5 Viking (almost expired at $1 each). Product total was $40. They want to hit me with a $30 tax plus $15 shipping. From looking at US tobacco tax I see snuff tax at about $1.50 per pound. What am I missing here?

[TheOneandOnly]

State tax.. probably a certain percentage of wholesale price.

[cigator]

State tax.. probably a certain percentage of wholesale price.

The tax they are quoting me has to be wrong. I am in Florida. The tax on a pack of cigarettes is like $1.25. They are charging me as much or more on a tin of snus. I checked federal regs. It is $1.50 per pound for snuff. Something is amiss here, and I sense the consumer is getting ripped off. I sent Getsnus an email with my question 12 hours ago with no response.

[sgreger1]

Lol, yah after they enacted the PACT act the tax rate went up a lot for some states. Can any of our other Florida snusers here give Cigator the lowdown?

If you use the search feature on the forum there should be a thread here that breaks down the tax rates by state. Some are REALLY high now, like double or more the price of the actual snus.

[lxskllr]

Courtesy of Justin...

Florida changed July 1, 2009:

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=C h0210/SEC276.HTM&Title=->2009->Ch0210->Section%20276#0210.276

210.276 Surcharge on tobacco products.--

(1) A surcharge is levied upon all tobacco products in this state and upon any person engaged in business as a distributor of tobacco products at the rate of 60 percent of the wholesale sales price. The surcharge shall be levied at the time the distributor:

and when it says surcharge that means on top of the original 25% excise tax.

http://www.myfloridalicense.com/dbpr...rate_info.html

EXCISE TAXES AND SURCHARGE - OTHER TOBACCO PRODUCTS

25% of wholesale sales price (excise tax) $0.25 per $1.00
60% of wholesale sales price (surcharge) $0.60 per $1.00

[cigator]

the tax table shows 85% of wholesale. What is getsnus cost for a $4 tin.

[lxskllr]

the tax table shows 85% of wholesale. What is getsnus cost for a $4 tin.

Hard to say. I don't think you'll get that out of any retailer. I'd figure a 100% markup, so $2 should get you in the ballpark.

[cigator]

Hard to say. I don't think you'll get that out of any retailer. I'd figure a 100% markup, so $2 should get you in the ballpark.

wow $1.70 in tax on a $4 tin. It's like they would prefer I smoke cigarettes or cigars based on the tax structure

[Jwalker]

Yes that sucks I looked at washington's rate since that's where I live when I'm not in college and it was ridiculous a fifty dollar order would be 120 or so after shipping. Not that having 40 percent added on to california's rate is great either, that's why I use snuscentral I don't think it should be my job to balance california or washington's budget deficit.

[cigator]

Hard to say. I don't think you'll get that out of any retailer. I'd figure a 100% markup, so $2 should get you in the ballpark.

I see you are in Maryland. Tax table shows 15% of wholesale. So the tin that costs me $5.70 costs you $4.30?

[sgreger1]

Lol, isn't it an awesome country we live in where you have to pay full price for the item, then essentially buy it again but get no second item? 1 is for you, the other is for the government.

[cigator]

Yes that sucks I looked at washington's rate since that's where I live when I'm not in college and it was ridiculous a fifty dollar order would be 120 or so after shipping. Not that having 40 percent added on to california's rate is great either, that's why I use snuscentral I don't think it should be my job to balance california or washington's budget deficit.

Washington shows $2.53 per oz. in tax So a tin there would be about $2.00 in tax.

[lxskllr]

I see you are in Maryland. Tax table shows 15% of wholesale. So the tin that costs me $5.70 costs you $4.30?

Presumably. I haven't made a post PACT order yet, and don't foresee one for a very long time, but assuming that rate is correct, and your math is good, that's right. MD has always lagged behind with tobacco taxes. We used to be a big tobacco state, and I guess the culture has persisted to this day. Cigarette taxes are high, but everything else is closer to reasonable.

[cigator]

Presumably. I haven't made a post PACT order yet, and don't foresee one for a very long time, but assuming that rate is correct, and your math is good, that's right. MD has always lagged behind with tobacco taxes. We used to be a big tobacco state, and I guess the culture has persisted to this day. Cigarette taxes are high, but everything else is closer to reasonable.

I have family in Virginia where its 10% of manufacturers cost. That has to be low. Im going to have them order for me

[cigator]

Yes that sucks I looked at washington's rate since that's where I live when I'm not in college and it was ridiculous a fifty dollar order would be 120 or so after shipping. Not that having 40 percent added on to california's rate is great either, that's why I use snuscentral I don't think it should be my job to balance california or washington's budget deficit.

Hows snuscentral work for you. The shipping cost is extreme