Legal Question in Business Law in New Jersey

Re: Buying cigarettes for friends & family

Tell your friends and family that you can not do this. It is not smart nor legal to bring 100 cartons of cigarettes across state lines into New Jersey. You are avoiding (for your friends) the sales tax which NJ wants to be paid. 100 cartons is far, far in excess of any casual purchase for your own use. Without doubt, you would have a really serious problem if you, for example, had a flat tire and a NJ State Trooper stopped to help you, and asked what the heck you were doing with all the smokes.

Please let me know if any other legal issues arise that call for an attorney. By the way, with so much business travel, have you got a really good accountant to maximize your tax deductions

Re: Buying cigarettes for friends & family

I agree with Bob that you are creating an exposure to yourself, potentially for sales tax liability (or use tax) as well as the potential to have to register as a business, even if you are merely doing favors. It is the quantity that creates the exposure. You should inform everyone that they have a use tax obligation, based upon the annual costs they each expend. You might be aware that on-line cigarette vendors no longer take orders over the Internet just for this reason and now require that orders be done through the mail, with possible tax reporting. NJ is starting to crack down on these missing taxes. Take some advice from a smoker, stop doing it or collect and remit the applicable sales/use taxes. At 6%, they are still getting a bargain.