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Spend and Tax?
A: When you purchase cigars from some retailers, they’ve already paid the applicable Federal (SCHIP) and state taxes (if applicable) prior to putting them into stock. For example, if you live in Pennsylvania and the retailer you order from is also in PA, you will pay the required 6% state sales tax and any applicable shipping charges. That’s all.
If you live outside Pennsylvania, you will not be charged state sales tax, but you may eventually receive a letter from your state requiring you to pay tobacco taxes on your cigar purchases. I believe this has been the case in New Jersey, as well as in several other states. Suffice it to say, it really depends on your state. My advice would be to speak to your accountant, or someone who is familiar with your state’s mailorder tax laws.