Tobacco Tax Refund consultants is constantly looking out for new and creative tobacco tax refund opportunities for tobacco wholesalers or distributors across the country. Recently, we blogged about a unique refund opportunity for wholesale distributors in many states including Alaska, California, Colorado, Connecticut, Delaware, Indiana, Iowa, Montana, New Hampshire, Oregon, North Dakota, Utah, Wisconsin. Armed with a successful refund theory that got taxpayers back tens of millions in New York, we are eager to get money back in Maine as well.
In many states we have been advocating our first theory that we believe should be successful in several states. In Florida, a case called 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 ocourt cases have validated this proposition.
We also have information that was lead us to another new and innovative concept. In what we are calling our “manufacturer price” theory, which was used in New York, is a relatively simple idea. In several states we believe the law operates in a way in which the tax should be calculated on the sale from the manufacturer to the first distributor, not on the sale from another distributor to your distribution company. If you are buying tobacco from anyone other than the manufacturer (even a manufacturer's related distribution company), and paying state wholesale tax in Maine, you may be entitled to a huge refund.
The price at which the manufacturer sold to another distributor can be incredibly easy or difficult to determine. As you can imagine, the manufacturer often does not want the second distributor to know what it is making the initial sale for. 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. Based on our propietary infromation, we can efficently calculate your refund accurately. 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!
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 a shareholder in the law firm Moffa, Sutton, & Donnini 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