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As most of you guys know, I'm in the tobacco business, and I don't deal with Cigarettes, just Cigars and Hookah related stuff.
When I entered this business in 2004, the only tax I had to deal with in regards my products was a 47% California tobacco tax, which was already one of the highest in the nation. So every time I stock my shelves, I have a 30 days grace period to send the board of equalization my tobacco tax payment. So if I ordered $3k in cigars, I need to have an additional $1500 ready. It wasn't really an issue at the time because the economy was great, and I can find super rare stuff people can't find on the Internet.
Two years ago, an SCHIP tax was added at the Federal level, basically another 10%. Last week when I picked up some hookah supplies, I noticed a new tax by USDA. So if you live in California, and enjoys any form of tobacco product, whether it is cigs, cigars, pipe, or hookah, every $10 you spend, about $6.50 is tax.
Since 2008, my rent, electricity, insurance, water and various city fees all increased by as much as 40% while my business dropped by 45%.
Also since 2008, California increased their tobacco tax auditing field agents by 100 fold. So if they walk into my shop and point their finger on a box of cigar on the shelf, I have to show them the receipt with California Tobac Tax Paid stamp on it. If I can't provide that - Misplacement of a receipt, they will confiscate the entire shelf.
No wonder there is a 25% vacancy rate on shopping centers just on Beach Blvd alone, and it is the biggest street in Orange County with the most none-freeway traffic. A friend of my recently closed his self service coin operated car wash after 30 years. He said the EPA and various other regulations killed it.
I wonder when is all these going to end, always some kind of new regulations, fees, taxes.
I'm in search of a money tree, any ideas where I can find one?
As most of you guys know, I'm in the tobacco business, and I don't deal with Cigarettes, just Cigars and Hookah related stuff.
When I entered this business in 2004, the only tax I had to deal with in regards my products was a 47% California tobacco tax, which was already one of the highest in the nation. So every time I stock my shelves, I have a 30 days grace period to send the board of equalization my tobacco tax payment. So if I ordered $3k in cigars, I need to have an additional $1500 ready. It wasn't really an issue at the time because the economy was great, and I can find super rare stuff people can't find on the Internet.
Two years ago, an SCHIP tax was added at the Federal level, basically another 10%. Last week when I picked up some hookah supplies, I noticed a new tax by USDA. So if you live in California, and enjoys any form of tobacco product, whether it is cigs, cigars, pipe, or hookah, every $10 you spend, about $6.50 is tax.
Since 2008, my rent, electricity, insurance, water and various city fees all increased by as much as 40% while my business dropped by 45%.
Also since 2008, California increased their tobacco tax auditing field agents by 100 fold. So if they walk into my shop and point their finger on a box of cigar on the shelf, I have to show them the receipt with California Tobac Tax Paid stamp on it. If I can't provide that - Misplacement of a receipt, they will confiscate the entire shelf.
No wonder there is a 25% vacancy rate on shopping centers just on Beach Blvd alone, and it is the biggest street in Orange County with the most none-freeway traffic. A friend of my recently closed his self service coin operated car wash after 30 years. He said the EPA and various other regulations killed it.
I wonder when is all these going to end, always some kind of new regulations, fees, taxes.
I'm in search of a money tree, any ideas where I can find one?