PACT Taxes

[outsidelinebacker20]

If this is common knowledge, excuse me. Does anyone know how much more our snus will be once the Act comes into effect? I need to know to develop my stock up purchasing strategy.

Thanks,
Kevin

[UTVol10]

The price you'll pay once PACT goes into effect will vary according to the tax rates for your specific state. Although prices will rise for everyone, some states have a lower tax on tobacco than others. There will also be the added expense of shipping since USPS will not ship snus anymore after PACT.

[WickedKitchen]

If you're in Germany i don't think that the US laws will change anything for ya.

[Fredrik_Northerner]

Well, in short, the majority of states base their taxes on Wholesale price or Manufacturer price. So one cannot simply multiply the current price with your local tax rate. We've conducted pricing stress tests on a number of the brands we'll be carrying in the US and at this stage it looks as though prices will be apprx 10-20% higher than they are today (UPS shipping included).

Taxes by state are as follows:

Alabama 1 cent-8 cent/ounce
Alaska 75% Wholsale Price
Arizona 23.8 cent/ounce
Arkansas 68% Manufactures Price
California 41.11% Wholesale Price
Colorado 40% Manufactures Price
Connecticut 27.5% Wholesale Price
Delaware 15% Wholesale Price
DC 30 cent/ounce
Florida 85% Wholesale Price
Georgia 10% Wholesale Price
Hawaii 70% Wholesale Price
Idaho 40% Wholesale Price
Illinois 18% Wholesale Price
Indiana 24% Wholesale Price
Iowa 50% Wholesale Price
Kansas 10% Wholesale Price
Kentucky 15% Wholesale Price
Louisiana 20%-33% Manufactures Price
Maine 78% Wholesale Price
Maryland 15% Wholesale Price
Massachusetts 90% Wholesale Price
Michigan 32% Wholesale Price
Minnesota 70% Wholesale Price
Mississippi 15% Manufactures Price
Missouri 10% Manufactures Price
Montana 50% Wholesale Price
Nebraska 20% Wholesale Price
Nevada 30% Wholesale Price
New Hampshire 48.59% Wholesale Price
New Jersey 30% Wholesale Price
New Mexico 25% Product value
New York 46% Wholesale Price
North Carolina 12.8% Wholesale Price
North Dakota 16 cent-60 cent/ounce
Ohio 17% Wholesale Price
Oklahoma 60%-80% Factory List Price
Oregon 65% Wholesale Price
Pennsylvania No Tax
Rhode Island 80% Wholesale Price
South Carolina 5% Manufactures Price
South Dakota 35% Wholesale Price
Tennessee 6.6% Wholesale Price
Texas $1.10/ounce
Utah 35% Manufactures Price
Vermont 92% Manufactures Price
Virginia 10% Wholesale Price
Washington 75% Wholesale Price
West Virginia 7% Wholesale Price
Wisconsin 71% Manufactures Price
Wyoming 20% Wholesale Price
Federal Tax 9.4 cent/ounce

[c.nash]

WTF!?!?!? 85% wholesale price for me!?!?

[Fredrik_Northerner]

Well, yeah. But do you know the wholesale price?;-)

[Mr. Snuffleupagus]

Thanks for the info, Fredrik. 10-20% is not that bad IMO.

[Tobakssmak]

Looks like the tax rates are inversely proportional to the number of rednecks who dip and vote in the state. Fortunately, southern Illinois has a lot of rednecks, so our rate is only 18% of wholesale

Look at South Carolina! I may have to move

[rickcharles606]

WTF!?!?!? 85% wholesale price for me!?!?

Fred, I'm pretty sure that Florida's rate is only 25% our cost. Anytime you see the words "wholesale" or "manufacturer" cost, that means the price that the distributor or retailer paid for it. If someone purchases off our website, that makes us the retailer. If someone purchases from a retailer that we've supplied the snus, that makes us distributor. In both cases the tobacco tax would be based on our cost, since we're filling both distributor and retailer roles.




Administrative/All 2009 Florida Statutes




210.30 Tax on tobacco products; exemptions. --

(1) A tax is hereby imposed upon all tobacco products in this state and upon any person engaged in business as a distributor thereof at the rate of 25 percent of the wholesale sales price of such tobacco products. Such tax shall be imposed at the time the distributor:

(a) Brings or causes to be brought into this state from without the state tobacco products for sale;

(b) Makes, manufactures, or fabricates tobacco products in this state for sale in this state; or

(c) Ships or transports tobacco products to retailers in this state, to be sold by those retailers.

(2) A tax is hereby imposed upon the use or storage by consumers of tobacco products in this state and upon such consumers at the rate of 25 percent of the cost of such tobacco products. The tax imposed by this subsection shall not apply if the tax imposed by subsection (1) on such tobacco products has been paid. This tax shall not apply to the use or storage of tobacco products in quantities of less than 1 pound in the possession of any one consumer.

Here's a link to FL's dept of revenue

https://taxlaw.state.fl.us/view_sear...rate&files=%2A

[Premium Parrots]

I think 18% for Illinois is pretty decent. Not a problem at all to pay, as long as I can still get it.

[justintempler]

Fred, I'm pretty sure that Florida's rate is only 25% our cost. Anytime you see the words "wholesale" or "manufacturer" cost, that means the price that the distributor or retailer paid for it. If someone purchases off our website, that makes us the retailer. If someone purchases from a retailer that we've supplied the snus, that makes us distributor. In both cases the tobacco tax would be based on our cost, since we're filling both distributor and retailer roles.

...

http://www.snuson.com/forum/showthre...Taxes-By-State

Florida changed July 1, 2009:

http://www.leg.state.fl.us/statutes/...earch_String=& URL=Ch0210/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

[Simplysnus]

50% for me seems to be the middle ground, thought we had more rednecks than that

[EricHill78]

$1.10 for Texas? Not a percentage hmmm. Is that good or bad? LoL I'm still new to snus.

[EricHill78]

Oh and Fredrik I just placed my first order to northener and I forgot to add my apartment # I wrote an email and read te post you did about how u guys are busy which I understand.

[rickcharles606]

JT...you are correct, but only in cases where the distributor has "nexus" in the state. We do not and only pay the 25% for online purchases. That's how it was explained to me by the director of the FL excise dept. Now when we set up a distribution network (which I plan on doing in the near future) it will change things for us, because we will have nexus then.