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Cigarette tax

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skyfury

Junior Member
I live in Iowa where they have a law that says 6% tax on internet sales. I purchased cigarettes in 2008/2009 from the internet and now am being billed for those purchases. The problem I have with this is that they are charging me a average of 127% tax rate on those purchases. Is it legal to charge more in taxes than what is paid for the product?
 


Zigner

Senior Member, Non-Attorney
You're being penalized for failing to pay the tax, as required. Yes, it's legal.
 

FlyingRon

Senior Member
The cig tax is $1.26 a pack PLUS you owe the 6% sales tax on that.
You may also be charged a penalty for importing unstamped packs into the state.
 

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