His father is one of the cigar industry’s legendary master blenders; Avo was his adopted uncle, he knows the cigar business inside and out. He’s also just a really nice guy: Klaas Pieter Kelner, Davidoff Cigars Brand Ambassador, who talks with us about growing up at the heart of the business, the appreciation of a fine cigar, and more
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.