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States Take Aim at Mail-Order Cigars

Jun 20, 2006 | By Gregory Mottola
For decades, cigar enthusiasts have been ordering their premium smokes from out-of-state catalog companies, and more recently, from Internet vendors in an effort to get a good bargain, as well as a tax break. But states such as Florida and Louisiana have recently taken a keen interest in out-of-state tobacco purchases by its residents, and are aggressively seeking to levy taxes on all mail-order tobacco products, requiring each individual to report any out-of-state purchase.

Within the past year, many catalog and Web customers in Louisiana and Florida have received an official letter alerting them that their state is aware of their mail-order transactions. The letter also includes an estimated value of the purchases. If the value is overstated, it is then incumbent upon the customer to turn in a copy of the invoice.

For more on this story, see the June 6 issue of Cigar Insider.