As Tobacco Tax Refund consultants, we are constantly on the lookout for
novel tobacco tax refund opportunities for tobacco wholesalers or distributors.
Recently, we blogged about a unique refund opportunity for wholesale distributors in
New Jersey. Armed with a successful refund theory that got taxpayers back tens of
millions in New York, we are eager to get money back in your state as well.
Our first theory that we believe should be successful in Illinois relates
to which items, state whole tobacco tax should apply to. In Florida, a
Micjo stands for the concept that tobacco tax should only apply to tobacco and
not other charges such as federal excise tax and shipping. Several other
successful refund claims have validated this proposition.
We also have information that was lead us to another innovative theory.
Our “manufacturer price” theory was used in New York, and
is a relatively simple concept. In most states, such as Illinois, the
tax should be calculated on the sale from the manufacturer to the distributor,
not on the sale from another distributor to your distribution company.
If you are buying tobacco from anyone other than the manufacturer, you
are likely entitled to a substantial refund.
The price at which the manufacturer sold to another distributor can be
easy or difficult to determine. Some distributors list the amount they
paid for the tobacco from the manufacturer. In those situations, the refund
calculation is an easy one. However, putting the documentation and dealing
with the state agency is not so easy. That’s where we come in. All
we need is your tax returns, the backup support, and we deal with it from there.
If the sales price from manufacturer to distributor is not listed then
the calculation is not quite as easy. Luckily for you, we have access
to proprietary information that can be used to determine the manufacturer’s
price to the original distributor. While it may sound far-fetched, this
method was successful in recouping tens of millions of tobacco tax refunds
for New York tobacco wholesalers. We file the refund, deal with the state
agency, and work with counsel if necessary to litigate the case and get
your money back. Better yet, we take refund cases on contingency so the
risk is on us!
In addition, if you are located in Alaska, California, Colorado, Connecticut,
Delaware, Indiana, Iowa, Maine, Montana, New Hampshire, Oregon, North
Dakota, Utah, Wisconsin, or other states with similar laws then you might
have a refund based on our theory and proprietary information. Give us
a call to get started today!
About the author: Mr. Donnini is the president and founder of Tobacco Tax
Refunds, Inc. He is also multi-state sales and use tax attorney and an
associate in the law firm Moffa, Gainor, & Sutton, PA, based in Fort
Lauderdale, Florida. Mr. Donnini has extensive knowledge handling wholesale
tax controversy and refunds.
In his law practice Mr. Donnini's primary practice is multi-state sales
and use tax as well as state corporate income tax controversy. Mr. Donnini
also practices in the areas of federal tax controversy, federal estate
planning, Florida probate, and all other state taxes including communication
service tax, cigarette & tobacco tax, motor fuel tax, and Native American
taxation. Mr. Donnini obtained his LL.M. in Taxation at NYU. Mr. Donnini
is licensed to practice law in Florida. If you have any questions please
do not hesitate to contact him via email [email protected]
or phone at 954-639-4496