Cigarette and tobacco products tax

 

Important Developments
 
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 
 
Determining a Distributor's Wholesale Price of Cigars Using the Industry Standard Adjustment Ratio TSB-M-13(12)M
Indian tax exemption coupons / prior approval system View/Report Indian Tax-Exempt Cigarette Sales
 

 
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.

A tax stamp affixed to the bottom of each pack of cigarettes sold in the State provides evidence that the taxes were paid. A state tax stamp is evidence that the state excise tax was paid. A joint state/city tax stamp is evidence that both the state and city taxes were paid.

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
  • $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
    • who 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
  • 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 product 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 product 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.

Registration fees are:   

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

To register a retail business, see Form DTF-716, Application for Registration of Retail Dealers and Vending Machines for Sales of Cigarettes and Tobacco Products.

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.

Returns

 Type of distrubutor

Tax formsFiling periodDue date
Cigarette stamping Agent CG-5 for Non-Resident 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 product distributor MT-203 Monthly On or before the 20th day of the following month
Tobacco product wholesaler MT-203-W Quarterly On or before the 20th day of the month following the end of the previous quarter
Retail registration DTF-716 for New Applications; DTF-719 for Renewal Applications Annually New Applications must be filed at least 30 days prior to anticipated start date. Registration Renewal Applications must be filed on or before September 20.

 For more information:

 

Updated: January 29, 2014