Re: => VT Bans Internet Cig Sales ! <= tax, restrict, humiliateJoe wrote:
> On 2008-07-03, Jim Beard <jdbeard@patriot,net > wrote:
>> Since when do states have the authority to regulate interstate trade?
>
> While I would tend to agree with you that it shouldn't be allowed,
> this is an area of commerce that is still being battled over. The
> problem comes down to where the purchase is happening. The states are
> arguing, in part, that since the consumer never leaves the state, the
> purchase happens in the state.
That argument has been made for over a century, with respect to
mail order catalogs and such. It has never prevailed in Federal
Courts, and will not today.
> NY is now taxing all internet sales. I haven't done much purchasing
> since the law changed, but anyone selling to a consumer in NY is
> "required" to collect sales tax and remit to the NYS Treasury
> Department. I suppose that if they don't, it will still be left to
> the consumer, and I haven't looked in to how they plan to enforce, but
> the law came on line 6/1, IIRC.
New York has no authority to require any retailer outside New York
to do anything, with two exceptions. Amendment XXI prohibits
transport or import of alcohol into a state in violation of the laws
of the state, yielding control over such to the individual states.
And the Jenkins Act governing interstate distribution of
cigarettes (but not any other form of tobacco) requires reporting
on all sales to the state in which the buyer receives them. I
would have to look to see if the out-of-state seller must pay the
tax, but I think not. Just the reporting is onerous, though.
One may note that many states "require" residents to pay a "use
tax" or some such on goods purchased outside the state and brought
into the state. This has consistently been ruled a de facto
tariff by Federal Courts, and every time such a law is contested
in Federal Court the law (or that portion of it requiring such
payment of tax) is declared unconstitional and null and void.
If you are willing to declare such purchases and pay tax to your
state, you will get no thanks. If you do not, you may be
threatened with prosecution. If you continue to refuse, most
states do nothing but threaten. If they prosecute, you must present
your defense that such taxation is an unconstitional de facto
tariff, and appeal every decision against you until your case reaches
the Federal Courts. Once you are in Federal Court, you win, and
the state law will be struck down.
No cheers that this needs to be restated time and again.
jim b.
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