Cigar Reviews
No Sales Tax on Cigars
NH Cigars: No Sales Tax on Cigars
NH Cigars, available online at nhcigars.com, offers a unique perk: all their cigars are sales tax-free. This benefit comes from New Hampshire’s tax policies, which have made the state a favorable place for businesses and shoppers. Understanding why cigars are sales tax-free at NH Cigars and how it affects your shopping experience can help you see the value they offer.
New Hampshire is one of the few states in the U.S. that doesn’t impose a general sales tax. The tax-free status is part of the state’s broader approach to keeping taxes low. New Hampshire’s policy is designed to encourage economic growth and create a business-friendly environment. For NH Cigars, it means they don’t have to collect sales tax on purchases, whether made in-store or online. This policy directly saves consumers money, especially in an industry where taxes can significantly raise the price of luxury items like cigars.
In many states, cigars are subject to hefty sales taxes, sometimes exceeding 10%. These taxes can quickly add up, particularly for those who buy cigars regularly or in bulk. By shopping at NH Cigars, customers avoid these extra costs, making premium cigars more affordable. This is especially beneficial for online shoppers, who can take advantage of New Hampshire’s tax-free status regardless of where they live.
The absence of sales tax at NH Cigars means lower prices. It also shows their commitment to providing value without sacrificing quality. NH Cigars offers a wide selection of premium brands, ensuring customers find what they want at competitive prices. The savings from the lack of sales tax can be reinvested in higher-end cigars or accessories, enhancing the smoking experience.
NH Cigars has used this tax-free advantage to build a loyal customer base across the country. Cigar enthusiasts recognize the value of shopping in a tax-free environment and appreciate the fairness it brings to their purchases. This approach attracts not only local customers but also buyers from states with higher taxes, who are looking to maximize their savings.
In conclusion, the tax-free advantage at NH Cigars is a result of New Hampshire’s favorable tax policies. These policies benefit both the retailer and the consumer. By choosing NH Cigars, customers enjoy substantial savings, access to a wide variety of premium cigars, and a shopping experience designed to deliver the best value. Whether you’re a seasoned cigar aficionado or a casual smoker, NH Cigars offers a unique opportunity to enjoy your passion without the added burden of sales tax.
New Hampshire Sales Tax Philosophy
New Hampshire’s approach to sales tax, especially for online sales to out-of-state customers, is unique. New Hampshire is one of the few states in the U.S. without a general sales tax. This policy applies to businesses operating within the state, including those that sell products online.
Key Points of New Hampshire’s Tax Policy:
- No Sales Tax: New Hampshire does not impose a sales tax on goods sold within the state. This applies to both in-person and online sales. Businesses based in New Hampshire, like NH Cigars, do not charge sales tax to customers, whether the buyer is in-state or out-of-state.
- Interstate Sales: For online sales to customers in other states, New Hampshire businesses generally do not have to collect sales tax unless they have a physical presence in the customer’s state. This aligns with the U.S. Supreme Court’s 2018 decision in South Dakota v. Wayfair, Inc., which allows states to require out-of-state sellers to collect sales tax if they meet certain thresholds.
- New Hampshire’s Position: After the Wayfair decision, New Hampshire passed laws to protect its businesses from having to collect out-of-state sales tax. The state ensures that New Hampshire businesses don’t have to collect sales tax for other states unless required by law. Even then, the process is designed to be as simple and non-burdensome as possible.
- Out-of-State Purchasers: While New Hampshire businesses do not collect sales tax, some states require their residents to report and pay “use tax” on out-of-state purchases where sales tax was not collected. However, this tax is the buyer’s responsibility, not the seller’s.
In summary, New Hampshire law does not require businesses to charge sales tax on online sales to other states unless mandated by specific state laws where the customer resides. This policy, along with New Hampshire’s lack of a state sales tax, makes the state an attractive place for businesses and a favored destination for consumers looking to save money.
New Hampshire Tax Free Law Document
The relevant New Hampshire law regarding the collection of out-of-state sales tax by New Hampshire businesses, especially following the 2018 South Dakota v. Wayfair decision, is found in House Bill 1817 (HB 1817), which became law in 2018. The legislation was designed to protect New Hampshire businesses from the burden of collecting sales tax for other states unless explicitly required by law.
Foreign Sales and Use Tax
Protection of Private Customer Information in Connection with Retail Purchase Transactions
In July of 2009, the New Hampshire Legislature enacted RSA Chp. 78-D, entitled “Protection of Private Customer Information In Connection With Retail Purchase Transactions.”
See NH Laws of 2009, Chp. 169:1. RSA Chp. 78-D addresses Foreign Sales and Use Tax.
Although New Hampshire does not impose a sales tax on customers making purchases of goods like cigars online and services in New Hampshire, nor on goods and services purchased by its residents out of state for use, storage, or consumption in New Hampshire; other states do impose a sales tax on goods and services purchased by customers within their boundaries. Other states also impose an excise or
use tax on the usage, storage or consumption of goods and services purchased by their residents from a business located outside of the taxing state. Many of these taxing states require their
residents to report and pay the use tax directly to the state.
RSA Chp. 78-D sets forth a process in New Hampshire by which a foreign state may obtain private customer information for use in the determination of sales or use tax liability of the customer in that foreign state, or for use in the determination, collection, and remittance of sales or use tax by the retailer with respect to a New Hampshire retail purchase transaction. The “private customer information” a foreign state may obtain includes “documents, records and other information maintained in any form which contains the purchaser’s name, address, telephone number, credit card, debit card or check number; a description of the goods or service purchased; the identity of any person for whom the goods or services were purchased; and the identification of the point of transfer of any goods or services that comprise any sale of services
or goods, or both, for any purpose other than resale in the regular course of business that is completed at a location within New Hampshire; and where delivery or other first use of the services or goods occurs in New Hampshire.” See RSA 78-D:2, I (e).
Under the new law, effective July 9, 2009, a foreign state may obtain such information only if the foreign state first provides the retailer with written confirmation that the foreign state has
given the New Hampshire Department of Revenue Administration written notice of its intent to collect use tax on the particular retail transaction and the New Hampshire Department of Justice
has determined that the foreign state’s sales and use tax statutes: Impose upon its residents a requirement to individually pay sales or use tax on the use, storage, or consumption of goods or services purchased in any other state; Specifically identify the goods and services to which the use tax applies and exemptions to the use tax;
- Require that the retailer or its affiliates have adequate physical presence to establish nexus with the foreign state for the imposition of an obligation of the retailer to determine, collect, and remit a sales and use tax with respect to purchases by foreign state residents;
- Require every resident to submit annually to the foreign state a statement (i) identifying each and every item subject to such foreign state’s sales and use tax purchased outside such foreign state for storage, use or consumption within such foreign state during an applicable period, (ii) stating the value of such items purchased, and (iii) including a statement under penalties of perjury that such resident complied with the requirement stated in this chapter;
- Require its residents or the foreign state to provide the retailer at the time of a New Hampshire retail purchase transaction with information establishing whether or not the goods or services purchased in the state are intended to be used, stored, or consumed within the foreign state, and provide that any information supplied by its residents is irrefutably presumed to be correct and complete, and that the retailer may rely on such information regardless of the accuracy or completeness of such information;
- Require that any agency of such foreign state responsible for enforcing such foreign state’s sales or use tax shall annually audit, investigate, or examine not less than 10 percent of the total use tax returns filed by residents of such foreign state with respect to each year;
- Require that any agency of such foreign state responsible for enforcing such foreign state’s use tax shall conduct its audit, investigation, or examination practices with respect to residents’ use tax returns in a manner that ensures that such practices are applied equally regardless of the state in which the sales transaction occurs, and that requires any such agency to file a public report annually demonstrating compliance with this nondiscrimination requirement
- Create an irrebutable presumption that, in the absence of voluntary information by the resident, the goods or services purchased are intended to be used in the state in which they are purchased; and
Explicitly impose use tax collection requirements on out-of-state retailers with respect to
retail purchase transactions that are completed in those other states.
In order to comply with the prior written notice requirement of RSA 78-D: 2, II, a foreign state
shall mail the written notice to:
New Hampshire Department of Revenue Administration
Commissioner
P.O. Box 457
Concord, NH 03302-0457
Individuals who need auxiliary aids for effective communication in programs and services of
the Department of Revenue Administration are invited to make their needs and preferences
known to the N.H. Department of Revenue Administration, 109 Pleasant Street, Concord, NH
03301 or by contacting them at (603) 230-5000.
For detailed information, you can refer to the text of the bill or the New Hampshire Revised Statutes Annotated (RSA) under the sections related to sales and use tax. Link Here.
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