Does anyone actually know what the pact act would mean for a

[PipenSnus]

You might want to contact some tobacco distributors and ask who their legal counsel and/or CPA is. Those professionals should be up to speed on PACT, and be able to give you sound advice.

[danielan]

So, is there any legal problem with doing the paper work, paying the fees, etc.

Then just selling to yourself?

Or is it like an FFL where you get in trouble if you are not "legitimate".

[sgreger1]

So, is there any legal problem with doing the paper work, paying the fees, etc.

Then just selling to yourself?

Or is it like an FFL where you get in trouble if you are not "legitimate".

I had a resale license and you can sell just to yourself but only for a year, it's not really practical.

[rickcharles606]

Selling in multiple states in general causes a lot of these same paperwork issues. That's why you buy a copy of quickbooks pro to keep it all neat and orderly.

I am extremely good with administrative things and am very organized. I could handle the paperwork, however I am still in question as to whether it would be profitable once you include applicable sales tax and tobacco tax. Plus, how would I get it to the US? I would have to get UPS from sweden? lol. Maybe distributors are exempt from the "no using USPS " thing, but has anyone thought of this?

Think about it, even if they have a US warehouse, without USPS, even the distributors are gonna get charged a fortune to get it to their US warehouse. Anyone have any more info on this?


Edit, also re: your signature: "Fighting for Peace is like Screwing for Virginity!"

I'm sure the jews thought the same thing while hitler was slowly taking over the world. Surely WWII would have been more peaceful if we didn't do something silly like fight for freedom

Pretty sure Quickbooks wouldn't cover it bro. What I've found is that most states want their sales taxes paid the last day after the reporting quarter, and then the tobacco taxes paid on either the 15th or 20th of the month, with a report detailing who you sold to in the reporting month. Some states require that you pay the sales tax via EFT, but want the tobacco taxes paid via company check, or vice versa. Makes doing this an accounting nightmare. Now thus far, we're only talking about sales tax and tobacco tax, we haven't even mentioned the local and county taxes that many states have. To figure them, you have to go to the state website and put in the city or county that you sold the product in and it will tell you the local or county tax. Registering to pay the sales tax is easy, it's the tobacco tax that becomes problematic. Most states don't even know what PACT is, and I'm talking the tobacco revenue departments of these states don't know about PACT, which is funny in and of itself. I've been doing some calling around.

If you're a tobacco distributor it becomes a little less confusing, unless you want to operate in all 50 states, then it's very expensive. You must apply for a license/permit and pay a fee (some states are free, not many though), and then many states want a cash bond. However if you're just operating in your home state things aren't as expensive or complicated, depending on where you live. Selling to yourself is NOT an option because you have to do a monthly report on to whom you sold your product to, and it better be a retailer with a license to sell OTP, lol. I honestly think it would be as easy to open a gun store, lol

[sgreger1]

Pretty sure Quickbooks wouldn't cover it bro. What I've found is that most states want their sales taxes paid the last day after the reporting quarter, and then the tobacco taxes paid on either the 15th or 20th of the month, with a report detailing who you sold to in the reporting month. Some states require that you pay the sales tax via EFT, but want the tobacco taxes paid via company check, or vice versa. Makes doing this an accounting nightmare. Now thus far, we're only talking about sales tax and tobacco tax, we haven't even mentioned the local and county taxes that many states have. To figure them, you have to go to the state website and put in the city or county that you sold the product in and it will tell you the local or county tax. Registering to pay the sales tax is easy, it's the tobacco tax that becomes problematic. Most states don't even know what PACT is, and I'm talking the tobacco revenue departments of these states don't know about PACT, which is funny in and of itself. I've been doing some calling around.

If you're a tobacco distributor it becomes a little less confusing, unless you want to operate in all 50 states, then it's very expensive. You must apply for a license/permit and pay a fee (some states are free, not many though), and then many states want a cash bond. However if you're just operating in your home state things aren't as expensive or complicated, depending on where you live. Selling to yourself is NOT an option because you have to do a monthly report on to whom you sold your product to, and it better be a retailer with a license to sell OTP, lol. I honestly think it would be as easy to open a gun store, lol

You have a good point, though quickbooks or a similar application would work just fine once you establish what dates the papers need to be filed, as those dates will not likely change once established. People have used similar software to run much larger operations than what I am considering.

Doing business in 50 states is already difficult, and selling tobacco in 50 states would be like selling guns in 50 states, it's just too difficult. I was only considering CA as a start, and then expanding to the full west coast at some time thenafter if time and resources permit. Not even really for profit as much as just ensuring the supply chain stays steady and I as well as others near me get some snus. This pact is bad for business, but also bad for foreign businesses. So in a way it could work if I kept it on a 1 or two state basis. My only thing is I bet california charges a grip. I have talked with Jonathon from clubsnus already about CA law, but I have to hit him up again for the rest of the info.

[rickcharles606]

You have a good point, though quickbooks or a similar application would work just fine once you establish what dates the papers need to be filed, as those dates will not likely change once established. People have used similar software to run much larger operations than what I am considering.

Doing business in 50 states is already difficult, and selling tobacco in 50 states would be like selling guns in 50 states, it's just too difficult. I was only considering CA as a start, and then expanding to the full west coast at some time thenafter if time and resources permit. Not even really for profit as much as just ensuring the supply chain stays steady and I as well as others near me get some snus. This pact is bad for business, but also bad for foreign businesses. So in a way it could work if I kept it on a 1 or two state basis. My only thing is I bet california charges a grip. I have talked with Jonathon from clubsnus already about CA law, but I have to hit him up again for the rest of the info.

There are programs out there than can handle this type of accounting, but man are they expensive. California's Board of Equalization is who you need to speak to about this. I do know they will charge you a grand to apply for the license, and a grand for a security bond. You can find most of the info on the internet at the Board of Equalization. The name "Board of Equalization" doesn't that just reek of redistribution of wealth...blech. Good luck with them bro, they suck to deal with

[danielan]

I agree, there is much more to this then just paying state taxes.

There are also city and county taxes.

There may be issues around tax stamps. Although I don't know if they apply to smokeless anywhere - if they do, then this is probably an insurmountable problem, IMO.

[rickcharles606]

I agree, there is much more to this then just paying state taxes.

There are also city and county taxes.

There may be issues around tax stamps. Although I don't know if they apply to smokeless anywhere - if they do, then this is probably an insurmountable problem, IMO.

Haven't seen anything concerning tax stamps and smokeless, that's usually just cigs.

[sgreger1]

There are programs out there than can handle this type of accounting, but man are they expensive. California's Board of Equalization is who you need to speak to about this. I do know they will charge you a grand to apply for the license, and a grand for a security bond. You can find most of the info on the internet at the Board of Equalization. The name "Board of Equalization" doesn't that just reek of redistribution of wealth...blech. Good luck with them bro, they suck to deal with

Thanks for the reference. From the research I have done thusfar, I am 90% sure this won't be worth my time, but I am checking it out just to see if potential exists. So far it sounds like it is as bad as I feared. they have created so many flaming hoops and barriers of red tape, that an honest person could not sell Tobacco unless they had a lot of money behind them and a lot of time to burn. So far what I gather is that it is purposely cost prohibitive and too paperwork heavy to be of any real benefit to me even if I made a few bucks. Perhaps if I was unemployed. Well i'll check out the BOE, I appreciate it Rick.

[rickcharles606]

Thanks for the reference. From the research I have done thusfar, I am 90% sure this won't be worth my time, but I am checking it out just to see if potential exists. So far it sounds like it is as bad as I feared. they have created so many flaming hoops and barriers of red tape, that an honest person could not sell Tobacco unless they had a lot of money behind them and a lot of time to burn. So far what I gather is that it is purposely cost prohibitive and too paperwork heavy to be of any real benefit to me even if I made a few bucks. Perhaps if I was unemployed. Well i'll check out the BOE, I appreciate it Rick.

No problem brother, let me know how it works out for ya.