Tobacco Tax Refunds has filed millions of dollars on one specific issue – wholesale sales price. Micjo v. DBPR, a case heard by a Florida Appellate Court in 2012, declared that the taxable portion of the “wholesale sales price” does not include either federal excise tax (“FET”) or shipping charges. Since one simple ruling effectively changed the tobacco tax landscape pointing in favor of taxpayers.
Not only does this issue apply to Florida taxpayers, but this issue likely extends to many other states with similar tobacco tax laws. Washington imposes a 95% tax on the “taxable sales price.” Further, section 82.26.10 defines “taxable sales price” as “the actual price for which the taxpayer purchased the tobacco products.” This statute is seemingly in-line with Florida’s “wholesale sales price,” as such a similar approach applies to ensure tobacco tax distributors a large refund claim.
Tobacco Tax Refund advises every tobacco tax distributor – or their representatives – to file a refund claim. There really is not downside to filing for a refund. Please take the following example:
Tobacco - $75,000
FET - $55,000
Shipping - $30,000
Total Invoice - $160,000
Tax imposed on the “taxable sales price” or the actual price for which the taxpayer purchased the tobacco products is 95%.
Using Tobacco Tax Refund’s theory, if a tobacco tax distributor were to pay tax on the total invoice, which includes tobacco, FET, and shipping, then the tobacco tax distributor would be entitled to a 95% refund on the total FET and shipping. The tobacco tax distributor would be entitled to a $80,750. A tobacco tax distributor could effectively go back years utilizing this ideology. We at Tobacco Tax Refunds can assist your company and help claim large refunds.
Since Tobacco Tax Refund’s sole focus is tobacco tax, we can provide a specialized expertise that many experience tax professionals may not handle. Our team has on many occasions challenged state tobacco taxing agencies, because tobacco tax refunds are our only focus.
Tobacco Tax Refunds will assist you in the following ways:
- We will provide each taxpayer with an efficient evaluation and advise as to future actions.
- We will review audit results and discuss alternative paths to fighting your audit results
- We will have successfully reduce or eliminate penalties.
- We may even help reduce tobacco taxes and related interest.
- It is our goal to secured refunds in a timely manner.
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, New Jersey, Oregon, North Dakota, Utah, Washington, 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) 628-0334.
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.