Tax Mistake

rozett · Sep 21, 2002

A number of years ago, Massachusetts sent plain-clothed state troopers into Nashua, NH to watch the state-owned liquor stores. They would radio ahead to troopers waiting on the highway. Folks would get pulled over and arrested for carrying too much liquor across state lines without paying the state tax. But NH didn't want to lose the revenue. So the Nashua PD started arresting the troopers for loitering, illegal parking, etc. Massachusetts finaly withdrew the troopers. I'm sure that there were some heated discussion between the governors, mayors,etc.

Anonymous Poster · Sep 21, 2002

Here in Texas if you sign a statement that you are purchasing the equipment for use on your farm, there is no sales tax. I know this because I just bought a new tractor and no sales tax was charged by the dealer. Be sure and check to see if your state has the same provision. Good luck.

Ozarker · Sep 21, 2002

Nothing like that has ever happened to me but I believe I would fight that if it ever did happen. As long as I complied with the law where I made the purchase and the purchase was for personal use, not for resale, I believe the Constitution prohibits states from adding a tariff for interstate commerce. Forcing me to pay an additional tax on a product before bringing it into the state is a tariff.

Missouri tried to force me to pay sales tax on a car I bought in Germany once. I objected on the grounds that they are not entitled to collect sales taxes on the vehicles of people who move to the state from other states so they were not entitled to collect taxes from someone moving from another country into the state. The tax was waived.

rozett · Sep 22, 2002

There are laws that limit how much alcohol and cigarettes you can take across state lines for personal use. Primarily because of the differences in state taxes. My recollection is that it's 2 cartons of butts and a case of liquor (but that's only my memory). These guys were targeting folks that loaded many cases of liquor in the car... like in preparation for a party.

I grew up in CT and went to college in FL. Many of us stopped in the Carolinas to load up on smokes, fireworks, and booze. We never had any trouble. At least not in transprting it. /w3tcompact/icons/grin.gif

Ozarker · Sep 22, 2002

I am aware of the law. It is similar to the law concerning the import of liquor and tobacco for personal use when entering the country. I have had to pay additional import taxes because I had too much wine entering the country before. My wife likes various European wines.

My position is that the Constitution prohibits such additional import taxes between states and that states have no authority to tell me how much I can purchase for personal use.

I see it as the same when one mail orders from another state or internet purchases. As far as I am concerned, the state has the authority to tax what is sold within it's borders but the reality is that we do not have a national consumption tax. Therefor, in my opinion, the state has no authority to tax anything sold in another state and the constitution forbids tariffs at the border between the states.

Missouri law prohibits the sale of alcohol or tobacco without state tax being paid. It does not prohibit the consumption of those items without state tax being paid. So it shouldn't matter how much I have as long as I am not violating the law and selling it. I should be able to consume it or serve it to my guests without interference from the government. If the problem is a lower tax in the next state.......well, that is called competition. The high tax state should lower the tax and compete for my business.

DUMBDOG · Sep 22, 2002

Everyone has their own views, even is sometimes they contradict the laws of the land.

Is this not what makes this country great, the right to disagree?

Ozarker · Sep 22, 2002

I didn't think we were disagreeing. You said what the law is. I said that the law violates the constitution. The Constitution is the law of the land, not state laws.

rozett · Sep 22, 2002

You and I are in violent agreement!

Ozarker · Sep 22, 2002

That's a good one. I don't remember ever being in violent agreement with anyone before. Been in one or two violent disagreements in my time. That was when I was much younger and healed quicker.