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View/Report Indian Tax-Exempt Cigarette Sales

UPDATE: On June 21, 2011, the temporary restraining orders issued by the New York State Supreme Court, Appellate Division Fourth Department, on June 9, 2011 and June 10, 2011, were vacated and the motion for a preliminary injunction pending appeal was denied. See State Supreme Court Appellate Division Order.

The Indian tax exemption coupon system and the prior approval system will be implemented immediately.

Wholesale dealers (including agents) are required to collect the cigarette excise tax and prepaid sales tax on all cigarettes sold for resale on an Indian reservation to non-Indians and non-members of an Indian nation or tribe. All packs of cigarettes sold by wholesale dealers to Indian nations and tribes and reservation cigarette sellers are required to have New York tax stamps affixed to them. Wholesale dealers may sell stamped packs of cigarettes to Indian nations and tribes and reservation cigarette sellers exempt from tax to the extent Indian tax exemption coupons are provided or to the extent prior approval is received from the Tax Department.

Prior approval system for wholesale dealers

If an Indian nation or tribe hasn't elected to use coupons, wholesale dealers must use the prior approval online service to sell stamped tax-exempt cigarettes to an Indian nation or tribe or a reservation cigarette seller. Wholesale dealers must follow these steps to get prior approval.

  • Create an Online Services account, if you don't already have one.
  • When you receive a purchase request from an Indian nation or tribe or reservation cigarette seller:
    • Log in to your Online Services account and check the View/Report Indian Tax-Exempt Cigarette Sales service to determine the available cartons of stamped tax-exempt packs of cigarettes that may be sold in relation to that Indian nation or tribe.
    • Request a number of cartons to sell to an Indian nation or tribe or reservation cigarette seller. (You will receive an authorization confirmation number.)
    • Within 48 hours of making the request, report the actual quantity sold, the name and address of each purchaser, and the invoice number for each sale. (You will receive a reporting confirmation number.)
    • Use the confirmation number you receive when you report the sale to claim a refund on Form CG-114-E, Expedited Claim for Refund for Indian Tax-Exempt Cigarette Sales.

For more information:

  • N-11-4, Notice Regarding Indian Tax-Exempt Cigarette Annual Amounts
  • TSB-M-11(4.2)M, (7.2)S, State Court Ruling Allows Implementation of Tax Law Provisions Related to Cigarettes Sold on Indian Reservations to Go Forward
  • TSB-M-11(4.1)M, (7.1)S, State Court Rulings Allow Implementation of Tax Law Provisions Related to the Cigarettes Sold on Indian Reservations Except as to the Seneca Nation of Indians
  • TSB-M-11(4)M, (7)S, Federal Court Allows Tax Department to Proceed with the Collection of Taxes on Cigarettes Sold on Indian Reservations
  • TSB-M-10(6)M, (8)S, Amendments to the Tax Law Related to Sales of Cigarettes on Indian Reservations Beginning September 1, 2010
  • TSB-M-10(5)M, Cigarette Stamping Agents Must Certify Compliance With Tax Law Article 20 Beginning September 1, 2010.
  • Form CG-114-E, Expedited Claim for Refund for Indian Tax-Exempt Cigarette Sales
  • Form CG-114-E-I, Instructions for Form CG-114-E
Updated: June 30, 2011