Thousands of arizonans told to pay taxes for online cigarette purchases

Thousands of arizonans told to pay taxes for online cigarette purchases

May 25th, 2015

PHOENIX Tens of thousands of Arizonans are facing fines and penalties over unpaid taxes after purchasing cigarettes online.

The Arizona Department of Revenue has been sending out notices to residents that the department claims have purchased cigarettes online without paying the required state taxes.

Sean Laux, chief legislative liaison and pubic information officer for the Arizona Department of Revenue, said Arizona is only one of many states that were notified by the federal government about people who had been purchasing cigarettes online.

“We received information directly about Arizona residents who were purchasing cigarettes with the detail of those purchases,” Laux said. “Once we received that information, we took a look, and we cross checked our system to see if both the luxury tax and use tax were paid and if not, we started sending out notices of tax due.”

All cigarette sales in Arizona are subject to both luxury taxes a tax on liquor and tobacco as well as use tax which is a tax on any tangible good that is used, stored or consumed in the state.

Laux said many people might have opted to purchase cigarettes online at sometimes half of the regular cost either without realizing that taxes required in the state of Arizona were not being paid or in an attempt to avoid paying the dues.

Now, Laux said the department is sending notices of unpaid taxes to about 30,000 people who will have to pay the past due taxes, penalties and interest. The issue has raised concerns for some who might wonder whether the Department of Revenue will come after unpaid taxes on other items purchased online.

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