Tobacco Tax Refunds has been consistently churning out refunds having filed
millions of dollars on one specific issue alone. A Florida Appellate Court
determined in the 2012 case of
Micjo v. DBPR that neither federal excise tax nor shipping charges are included in the
taxable portion of the wholesale sales price. This case in Florida changed
tobacco tax throughout the entire United States.
Unsurprisingly, we, Tobacco Tax Refund, have found that this issue applies
to many other states with similar tobacco tax laws. California imposes
a 28.13% tax on the “wholesale cost” of Other Tobacco Products,
effective July 1, 2015. California is unique in that tobacco tax on the
“wholesale cost” varies from year to year. Section 30017 of the California Revenue and Tax Code defines “wholesale
cost” as “the cost of tobacco products to the distributor
prior to any discounts or trade allowances.” Despite a slightly
different terminology than Florida’s “wholesale sales price,”
a similar analysis is applicable to that of Florida ensuring significant
We advise all persons who are or represent a wholesale tobacco distributor
to file a refund claim, as there really isn’t any downside. Take
the example of an invoice below:
Tobacco - $200,000
Federal Excise Tax - $160,000
Shipping - $40,000
Total Invoice - $400,000
Tax imposed on the “wholesale cost” – 28.13%
Using Tobacco Tax Refund’s theory, if payment is made on the entire
$400,000 invoice, which includes the FET and Shipping costs, then a refund
is due on 28.13% of the non-tobacco items, FET and Shipping Costs. The
wholesale tobacco distributor would be entitled to a $56,260 refund. This
is just for one individual invoice. A wholesale tobacco distributer could
effectively go back a few years on this issue. Our team can assist your
company and claim large refunds.
Tobacco taxes are not your ordinary taxes, many experienced tax professionals
do not handle such unique taxes. Wholesale cost of Other Tobacco Products
is a complex area requiring a specific expertise that we may provide.
Tobacco Tax Refund solely deals with these types of issues. Our team will
challenge any state tobacco taxing agency as tobacco tax refunds is our
How can we assist you?
· We ensure all taxpayers an appropriate and efficient evaluation
of each situation and advise how to proceed.
· We will review the audit results and discuss various paths to
challenging your results.
· Typically, penalties may get reduced or eliminated.
· Often, tobacco taxes and related interest may be reduced.
· We strive to secure refunds in a timely manner.
In addition, if you are located in Alaska, Colorado, Connecticut, Delaware,
Illinois, Indiana, Iowa, Maine, Montana, New Hampshire, New Jersey, Oregon,
North Dakota, Utah, Wisconsin, or other states with similar laws then
you might have a refund based on Micjo. Give us a call to get started today!
Talking to us is FREE, so give us a call today at (888) 918-4690.
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 JerryDonnini@TobaccoTaxRefund.com
or phone at 954-639-4496.