Tax court: $5,900 assessment on out-of-state cigarette purchases

TRENTON – Want proof that cigarettes can be hazardous to your … wallet?

The state Tax Court today ruled against a person identified only by the initials KS for nonpayment of use taxes on cigarettes purchased from an out-of-state vendor via mail order. The total purchases from Smoker’s Den were $2,887.55.

The initial assessment on the cartons of smokes purchased from 2006 to 2009?

Excise taxes in the amount of $3,445.25 and use taxes of $201.48.

With interest and penalties, the total assessment reached $5,601.31.

Following additional proceedings, the final assessment topped out at $5,915.91, the court reported.

Out-of-state vendors file reports with the state to assist in collection of use taxes.

Tax court: $5,900 assessment on out-of-state cigarette purchases