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Cigarette and tobacco products tax

Important Developments

Little Cigars         

TB-TP-530  

Clarification of Requirements Related to Roll-Your-Own Cigarette/Tobacco Machines Made Available for Commercial Purposes to Consumers       

TSB-M-14(3)M  

Federal Court Ratifies Settlement Agreement by the Oneida Nation, the State of New York, the County of Madison and the County of Oneida  

TSB-M-14(1)M, (4)S  

Determining a Distributor's Wholesale Price of Cigars Using the Industry Standard Adjustment Ratio           

TSB-M-13(12)M  

Cigarette Penalty Increased

TSB-M-13(4)M  

New York State Tax Requirements for Retailers that Make Roll-Your-Own Cigarette/Tobacco Machines Available to Customers 

TSB-M-12(5)M  

Change in Policy Regarding the Filing of Quarterly Informational Returns by Wholesale  Dealers of Cigarettes  

N-14-1  

Informational Return Filing Requirements for Wholesale Dealers of Cigarettes            

CG-89 online filing instructions  

Indian tax exemption coupons/prior approval system        

View/Report Indian Tax-Exempt Cigarette Sales  

Taxes on cigarettes

New York State imposes an excise tax on cigarettes at the rate of $4.35 per package of twenty cigarettes. New York City imposes a local excise tax at the rate of $1.50 per package of twenty cigarettes, bringing the combined tax rate in New York City to $5.85.

The excise tax is paid when a licensed cigarette stamping agent purchases New York State tax stamps and affixes them to the bottom of each pack of cigarettes sold in New York State as evidence that the state excise tax was paid. A joint New York State/New York City tax stamp is evidence that both the state and city excise taxes were paid. In addition to the excise tax, a prepaid sales tax is paid by the agent at the time the cigarette tax stamps are purchased. 

Taxes on other tobacco products
 
New York State also imposes an excise tax on tobacco products at the following rates:

  • 75% of the wholesale price on cigars and tobacco products (other than little cigars and snuff);
  • $4.35 per twenty little cigars; and
  • $2 per container of snuff one ounce or less, and $2 per ounce and a proportionate rate on any fractional amount thereof for containers with more than one ounce.

Licensing requirements for cigarette agents and wholesalers

You must be licensed as a cigarette agent to purchase and affix New York State cigarette tax stamps. Cigarette agent licenses may be issued to:

  • dealers (wholesalers or retailers) who:
    ·  maintain separate warehousing facilities for receiving and distributing cigarettes and conducting their business, and
    ·  have received commitments from at least two cigarette manufacturers whose aggregate market share is at least 40% of the New York State market.
  • importers, exporters, or manufacturers of cigarettes, and
  • certain other businesses dealing in unstamped cigarettes.

You must be licensed as a wholesale dealer of cigarettes if you intend to sell to a retail dealer or other persons for the purpose of resale.

For additional information regarding cigarette agent or wholesaler licenses, see Form CG‑100‑A, Application for License as a Cigarette Agent or Agent/Wholesaler.

Tobacco products distributor and wholesaler license

You must be appointed as a tobacco products distributor if you:

  • import or cause to be imported into this state any tobacco products (other than cigarettes) for sale
  • manufacture any tobacco products in this state
  • want to be authorized to file returns and pay the tax due on any tobacco products that you sell, ship, or deliver from outside the state to any person in the state

You must be licensed as a tobacco products wholesaler if you sell tobacco products for resale or own, operate, or maintain one or more tobacco products vending machines in New York State.

For additional information, see Form MT-202, Application for a License as a Wholesale Dealer of Tobacco Products or an Appointment as a Distributor of Tobacco Products.

Registration requirements for retailers

Every retail dealer of cigarettes or tobacco products in New York State, and every owner or operator of vending machines through which cigarettes or tobacco products are sold, must separately register each business location or vending machine.  The registration fees are:

  • $300 for each retail location
  • $100 for each vending machine

To register a retail business, visit the New York License Center at www.licensecenter.ny.gov, or see Form DTF-716, Application for Registration of Retail Dealers and Vending Machines for Sales of Cigarettes and Tobacco Products. Your registration is valid only for the calendar year for which it is issued, and you must apply for renewal on or before September 20th to renew your registration for the following year.

To renew your current registration, see Form DTF-719-MN, Renewal Application for Registration of Retail Dealers and Vending Machines for Sales of Cigarettes and Tobacco Products.

Retailer dealers in New York City are required to obtain both a city and state registration certificate before selling cigarettes. For more information about obtaining a New York City Cigarette Retail Dealer License, contact the New York City Department of Consumer Affairs at www.nyc.gov/dca.

Returns

Type of distributor

Tax forms

Filing period

Due date

Cigarette stamping agent

CG-5 for nonresident agents & CG-6 for resident agents

Monthly

On or before the 15th day of the following month

Cigarette wholesaler

CG-89

Quarterly

On or before the 20th day of the month following the end of the previous quarter

Tobacco products distributor

MT-203

Monthly

On or before the 20th day of the following month

Tobacco products wholesaler

MT-203-W

Quarterly

On or before the 20th day of the month following the end of the previous quarter

Retail registration

New York License Center or DTF-716 for new applications; DTF-719 for renewal applications

Annually

New applications must be filed at least 30 days prior to the anticipated start date. Registration renewal applications must be filed on or before September 20th to renew your registration for the following calendar year.

 For more information:

Updated: October 28, 2014