Taxation on Internet Purchases

Uh-oh.

Wisconsin State officials are going after Wisconsin residents who have purchased cigarettes online and have not paid state taxes.

Here's an example of what the taxes would be for a Milwaukee County resident who purchased 10 cartons of cigarettes annually in 2003 and 2004 and five cartons so far this year.

The calculations, which are based on the state's worksheet, use an online price of $30 per carton.

• $192.50 in cigarette taxes;
• PLUS $41.58 in interest on those taxes;
• PLUS $42.00 in state and local sales taxes;
• PLUS $9.07 in interest on those taxes;
• PLUS $40.00 in late filing fees.

Total taxes due: $325.15

Well, at least they were kind enough to give people till the end of the month. Sheesh.