A taxable transaction has occurred whenever an Ohio distributor receives untaxed other tobacco products or whenever an out-of-state distributor sells other tobacco products to an Ohio purchaser.
The Excise Tax Unit of the Ohio Department of Taxation issues the license.
Other tobacco products are any tobacco products, other than cigarettes, which are used for smoking or chewing, or both, and snuff. This includes, but is not limited to, cigars, snuff, pipe tobacco, cigarette tobacco, blunt wraps, and chewing tobacco. Cigarette papers are not considered other tobacco products.
Yes, you are required to notify the Department of Taxation that you are closing down the operation and must file all of the required returns and MSA 60 reporting through the final date of operation.
No. However, you may request for consent to transport (OTP99), electronically, via the Gateway.
Write to the Ohio Department of Taxation, Excise Tax Unit, P.O. Box 530, Columbus, Ohio 43216-0530, telephone us at (855) 466-3921, visit the cigarette and other tobacco products information release section of the department's Web site, or e-mail us.
Yes. If a return is filed late, there may be a late filing charge of $50 or 10 percent of the tax due, whichever is greater. Interest also applies to any late payments.
The distributor must file monthly tax returns with the Department, electronically, via the Gateway. The return and payment are due by the 23rd day of the month following the reporting period. For example, the February tax return is due March 23rd. A tax return must be filed each month even if no taxable transactions occurred.
Yes. The annual fee is $1,000 per license.
Each distributor of tobacco products must maintain complete and accurate records of all purchases and sales of tobacco products, and shall procure and retain all invoices, bills of lading, and other documents relating to the purchases and sales for a period of three years from the date the return was due or was filed, whichever is later. The distributor shall keep open records and documents during business hours for the inspection of the tax commissioner at the licensed location.
Beginning with invoices dated on or after October 1, 2013, the tax rate for little cigars is 37 percent of the wholesale price. For all other tobacco products, the tax rate is 17 percent of the wholesale price. “Wholesale price” means the invoice price, including all federal excise taxes, at which the manufacturer of the tobacco product sells the tobacco product to unaffiliated distributors, excluding any discounts based on the method of payment of the invoice or on time of payment of the invoice. If the taxpayer buys from other than a manufacturer, “wholesale price” means the invoice price, including all federal excise taxes and excluding any discounts based on the method of payment of the invoice or on time of payment of the invoice.
A “little cigar” is “any roll for smoking, other than cigarettes, made wholly or in part of tobacco that uses an integrated cellulose acetate filter or other filter and is wrapped in any substance containing tobacco, other than natural leaf tobacco.” The product described above would not meet the definition, because it is wrapped in a natural leaf tobacco.
The distributor pays the tax. A distributor is:
Any manufacturer who sells, barters, exchanges, or distributes tobacco products to a retail dealer in this state; or
Any wholesaler located in this state who receives tobacco products from a manufacturer or who receives untaxed tobacco products; or
Any wholesaler located outside this state who sells, barters, exchanges, or distributes tobacco products to a wholesale or retail dealer in this state; or
Any retail dealer who receives tobacco products on which the tax has not or will not be paid by another distributor or manufacturer.
In the case of an out-of-state dealer who sells directly to a consumer in Ohio, the seller is the taxpayer. If a consumer receives other tobacco products on which the tax has not been paid, the consumer is liable for the tax.
Yes. Each distributor must obtain from the Ohio Department of Taxation a separate license for each location where other tobacco products are received or distributed. (A license is address specific, so one is needed for each location.) The license must be renewed by Feb. 1 each year.
This list can be found on the Department of Taxation’s Web site here. You can then browse the list of interest.
Yes, you are required to file the other tobacco products returns even if you have no taxable purchases. The form MSA 60 is also required even if there were no non-participating manufacturer’s tobacco purchases for the period.
Yes. Each distributor of tobacco products subject to the tax levied by section 5743.51 of the Ohio Revised Code shall mark on the invoices of tobacco products sold that the tax levied by that section has been paid and shall indicate the distributor’s account number as assigned by the tax commissioner. You may, but are not required to, show the amount of Ohio tax paid on the invoice. Retailers and customers receiving tobacco products shipments are required to verify that the supplier is licensed prior to every order on the Department of Taxation’s Web site.