Cigar manufacturers and online cigar retailers can rest a little easier as a bill that would have allowed states to begin collecting online sales taxes has been stalled, for now.
The bill, dubbed the Marketplace Fairness Act, easily passed a Senate vote in May and was then sent on to the House, where it died in committee earlier this week.
The measure requires all online sellers, both cigar and otherwise, with annual gross remote (i.e. Internet) sales exceeding $1 million to collect and remit sales tax. In other words, large online cigar retailers such as Pennsylvania-based Cigars International and Thompson Cigar, headquartered in Florida, would be forced to collect sales tax from out-of-state consumers who don't have to pay sales tax under current law.
Eternal vigilence is required.