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Level 1

Excise Tax - SIN tax in Michigan

How do you record the tax that you pay on tobacco, specifically cigars that you purchase and then resell?  We are a cigar and spirits bar in the state of Michigan.  Due each month by the 21st for the previous months purchases.  Is this considered a COGS expense as it is not collected from the customer and then paid out to the state like sales tax (liability).  I see very little on this. 

1 Comment
Level 15

Excise Tax - SIN tax in Michigan

My first thought is as a reseller can't you buy tax free, the same way you do for any other items held for resale?

No it is not COGS, excise tax paid expense

When you sell a cigar, do you charge an excise tax as well as a sales tax?

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