We’re Getting Refunds – New Jersey Wholesalers Can Be Next
In 2012, a case came down in Florida which changed the tobacco tax landscape
Micjo v DBPR, a Florida Appellate Court determined that the wholesale sales price to
which tax is calculated on does not include federal excise tax or shipping
charges. We have been on a refund crusade since then and have filed millions
of dollars on this issue.
After engaging in research for clients with other issues, we have determined
that many other states have similar laws. For example, in New Jersey section
54:40B-3, imposes a 30% tax on the “wholesale sales price”
of a tobacco product. Although slightly different than Florida, New Jersey
has defined “wholesale sales price” to mean the actual price
for which a manufacturer sells tobacco to a distributor. However, it would
stand to reason that a similar analysis would apply to that which has
been used in Florida to secure large refund claims.
Like Florida, it is advisable that if you or your client is a wholesale
tobacco distributor then there is not much downside in filing a refund
claim. Even though the tax is only 30%, this number can become significant
pretty quickly. It may even pass muster, if your manufacturer splits out
other non-toabcco charges. The refunds on this issue can be substantial.
Imagine your invoice says:
Total Invoice $200,000
Under our theory, if you paid wholesale tobacco tax on the full $200,000,
then you may be entitled to a refund on 30% of the non-tobacco items (FET
& Shipping), for a total of $30,000. You oculd go back multiple years
on this issue. It is easy to see that having someone that knows what they
are doing can claim large refunds for your company.
While most reputable tax professionals do not deal with oddball taxes like
tobacco taxes. Wholesale tobacco tax is a complex area and requires unique
knowledge of experience. But dealing with these unique issues is 100%
of what our firm handles. We challenge the state tobacco taxing agency
at every level from audit to protest, to controversy. Day in and day out,
this is simply what we do.
Here is what we can do to help:
- In all cases, we can provide the taxpayer with a quick, efficient, and
honest evaluation of your situation and how to proceed.
- We will review your audit results or refund denial and discuss ways to
challenge your specific results.
- In most cases, we can at least get the penalties reduced or eliminated.
- In many cases, we can reduce the tobacco taxes and related interest.
- We can also often quickly secure refunds.
You are already looking at a large liability for taxes, penalties, and
interest - why would you not at least have a free consultation with a
consultant to challenge the agency's wrongdoing?
In addition, if you are located in Alaska, California, Colorado, Connecticut,
Delaware, Illinois, 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 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 practive 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.