Legal Question in Tax Law in New Jersey

Re: untaxed Internet cigarette purhase

To my knowledge, the letter you received is based upon the NJ use tax. If you were to buy something through the internet or out-of-state and pay less sales tax than charged for the identical item if purchased in NJ, you would be responsible for the NJ Use Tax for the differential between what tax you paid and what NJ would have charged. NJ is now taxing cigarettes purchased through the internet, and that is probably what the letter was about. Depending upon the quantity purchased, and the taxes due, the taxes need to be paid periodically. If only a few hundred dollars, they can be paid annually. You should check with the Division of Taxation on the frequency of payments due, and to get you the forms needed to be filed. You should be aware tat the state is trying to get internet sellers to provide this information, so your purchases can be verified, or have the taxes collected from the source of the sale.