Department of Taxation and Finance

Instructions for Form CG-114 Claim for Redemption/Refund of Cigarette Tax Stamps and Prepaid Sales Tax

CG-114-I

(9/26)

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General information

Who may file Form CG-114

If you are a cigarette stamping agent, you may file Form CG-114 to claim a redemption or refund of New York State cigarette tax and prepaid sales tax for unaffixed stamps that:

• you no longer need or are no longer qualified to affix,
• are from your inventory if you are in liquidation,
• are so damaged as to be worthless or unfit for use,
• have been superseded by stamps of a new design or denomination, or
• the Tax Department deems appropriate for redemption.

If you are a cigarette stamping agent, wholesale dealer, or retail dealer, you may file Form CG-114 to claim a refund of New York State cigarette tax and prepaid sales tax for stamps affixed to packages of cigarettes that:

• you returned to the manufacturer,
• were unsellable or unfit for use and consumption,
• you destroyed or sent to the Tax Department for destruction,
• you sold outside of New York State, or 
• you sold to an exempt purchaser (if purchaser is an Indian nation or tribe and reservation cigarette seller, you must use Form CG-114-E, Expedited Claim for Refund for Indian Tax-Exempt Cigarette Sales, to apply for refund).

When to file

If you are an agent, you must file a claim for a refund of New York State cigarette tax within two years after affixing stamps or purchasing unused stamps.

If you are a retail dealer or wholesale dealer, you must file a claim for a refund of the face value of the stamps within two years after purchasing the stamped packages of cigarettes from a licensed stamping agent.

To claim a refund of New York State prepaid sales tax, you must file within three years from the time you purchased the stamps.

Keep a copy of your claim form and all supporting documentation for three years.

Where to file

Mail your claim form along with any required stamps, coupons, invoices, manufacturer’s statements or affidavits, or unsellable cigarettes that you could not return to the manufacturer to:

Note: If cigarette stamps are included with this claim, you must use registered mail.

Private delivery services: If not using U.S. Mail, see Publication 55, Designated Private Delivery Services.

How to file for reimbursement of the New York City cigarette tax

To receive a copy of the New York City refund claim form, or to request information on the reimbursement or refund of the New York City cigarette tax, contact:

Specific instructions

Part 1: Claim for redemption of unused or damaged cigarette tax stamps and prepaid sales tax (stamping agents only)

The amount of redemption you can claim is equal to the amount of cigarette tax you paid (the face value of stamps you purchased, minus your commissions).

To file a claim for redemption, send the following together by registered mail to the Tax Department:

• Form CG-114, and
• all the unused or damaged stamps the claim pertains to.

If you have too many stamps for redemption to use registered mail, use a private delivery service. See Private delivery services.

Part 2: Claim for refund for stamps affixed to packages of cigarettes and prepaid sales tax

Stamping agents: You may claim a refund of the face value of the stamps, minus your commissions. To calculate the net amount of your allowable refund, use the rate of commission in effect as of the purchase date of the affixed stamps. If you cannot establish the purchase date of the affixed stamps, you may use the commission rate or rates in effect at the time of the sale, destruction, or determination of unsuitability for sale with prior consent from the Tax Department. To contact the Tax Department, see Need help?.

Retail dealers or wholesale dealers: You may claim a refund of the face value of the stamps. However, if you return cigarettes to your supplying agent for a credit, you cannot file a claim for a refund.

Cigarettes returned to the manufacturer

Before returning any stamped packages of cigarettes to the manufacturer, you must:

• have the packages inspected and verified (see Procedure for inspection and verification), or
• receive written authorization from the Tax Department to return the product without inspection.

Once the inspection and verification are complete or you have received written authorization, you may arrange to return the cigarettes to the manufacturer. You may file a claim for a refund if the manufacturer will provide you with a statement or affidavit that certifies:

• you returned the stamped cigarettes, and
• they have not reimbursed the tax you paid.

You must submit:

• a separate refund claim for each manufacturer you return stamped cigarettes to; and
• the manufacturer’s statement or affidavit with your original claim to the Tax Department.

Agent destruction of cigarettes

If the manufacturer will not accept unsellable cigarettes, you (the agent) may destroy these cigarettes after:

• inspection and verification (see Procedure for inspection and verification), or
• receipt of written authorization from the Tax Department to have the product destroyed without inspection.

Once the inspection and verification are complete or you have received written authorization, you may destroy the cigarettes.

Procedure for inspection and verification

Once the Tax Department receives your refund claim, a Tax Department representative will contact you to arrange a mutually convenient appointment for the inspection of the stamped packs and the verification of your claim. To prepare for the inspection, you must:

1. Sort the packages of cigarettes you intend to return by:
   • jurisdiction (State only or Joint City and State stamps), then 
   • stamp color and design.
2. Create a list of all the packages you are returning, ordered by stamp color and design, and provide a sample of the serial numbers for each stamp color and design.
3. Complete Form CG-114, then submit it with your list to the Tax Department.
4. Allow a sufficient area for the Tax Department's representative to conduct the inspection.

Cigarettes sent to the Tax Department for destruction

If you are a wholesale dealer or retail dealer, you may send cigarettes that are unsellable or unfit for use and consumption to the Tax Department for destruction when the manufacturer or agent will not accept their return.

1. Sort the cigarettes by jurisdiction (State only or Joint City and State stamps), then stamp color and design.
2. If the packages are loose, put them in cartons and pack the cartons in a box.
3. Complete Form CG-114, then submit it along with copies of invoices showing:

• your purchases of the specific cigarette brands you are returning, and
• the cigarette tax and prepaid sales tax you paid.

Note: If the number of packs of cigarettes exceeds 5,000, do not send the cigarettes to the Tax Department. Send only the refund claim and your purchase invoices. A Tax Department representative will contact you to make inspection and verification arrangements. See Procedure for inspection and verification.

Cigarettes sold outside of New York State

Important: Before shipping cigarettes to an out-of-state purchaser, you must obliterate or otherwise void the stamps.

 When claiming a refund for the value of stamps affixed to packages you sold outside New York State, you must provide with your claim form a statement for each invoice that includes:

• the date prepared,
• the name and address of both the out-of-state purchaser and the seller,
• the out-of-state purchaser’s identification number,
• the out-of-state location you took the cigarettes to,
• the out-of-state purchaser’s acknowledgement of receipt of the packages of cigarettes,
• a certification that the cigarettes will not be returned to New York State for sale or use, and
• the out-of-state purchaser’s signature.

Note: The change of possession of the cigarettes must occur outside of New York State. If an out-of-state dealer or their agent takes possession of the cigarettes inside New York State, it is a taxable sale and you cannot file a claim for a refund.

The department may request additional information or proof before processing your claim for a refund. The department cannot provide a refund or redemption until it verifies you paid New York State the tax you are filing a refund or redemption claim for.

Column instructions for Parts 1 and 2

The refund or redemption of cigarette tax and prepaid sales tax is based on the rates in effect at the time you paid for the stamps. When completing Parts 1 and 2, start with the date you purchased the stamps and make subsequent entries in Columns A through H, as applicable, based on the purchase date of the stamps you entered on each line in the first column. If you need more space, submit additional sheets providing the information in the same format as in each part. 

Column A: Cigarette tax stamp denomination

Column 1 of the Cigarette tax stamp denomination chart provides the amount you may claim a refund or redemption for. These amounts are also provided in Parts 1 and 2, Column A of Form CG-114.

Refer to Columns 2 and 3 of the Cigarette tax stamp denomination chart to identify the appropriate cigarette tax denomination based on the number of cigarettes in the pack and where you sold them (in New York State outside of New York City or inside New York City).

Column B: Prepaid sales tax per pack

To complete Column B, use the appropriate prepaid sales tax rate on Prepaid sales tax on cigarettes, or visit our website (see Need help?) (search: prepay).

Column C: Number of stamps

Part 1: Enter the number of tax stamps you purchased. List separately according to the date of purchase and pack size.

Part 2: Enter the number of affixed stamps on packs of cigarettes you purchased. List separately according to the date of purchase and pack size.

Column D: Cigarette tax paid

Multiply the cigarette tax stamp denomination in Column A by the number of cigarette stamps in Column C, then enter the result in Column D.

If you are not a cigarette stamping agent, do not complete Columns E or F; go to Column G.

Column E: Commission rate

Use the Cigarette stamping agent commission rates chart to determine the commission rate for your services and expenses in affixing stamps.

Stamping agents only: In Parts 1 and 2, enter the commission rate you received for affixing the tax stamps that corresponds to the date you purchased the stamps from the bank.

Column F: Commission amount

Multiply the cigarette tax paid in Column D by the commission rate in Column E, then enter the result in Column F.

Column G: Cigarette tax paid less commission

If you are not a cigarette stamping agent, enter the cigarette tax you paid from Column D in Column G.

Stamping agents only: Subtract the commission amount in Column F from the cigarette tax in Column D, then enter the result in Column G.

Column H: Prepaid sales tax paid

Multiply the prepaid sales tax per pack in Column B by the number of stamps in Column C, then enter the result in Column H.

If you claimed the prepaid sales tax as a credit on your sales tax return, do not complete Column H.

Certification

Sign the required certification. Read the certification carefully before signing.

If you are a sole proprietor, you must sign the return and print your name, title, email address, telephone number, and date.

If you are filing this return for a corporation, partnership, or other type of entity, an officer, employee, or partner must sign the return on behalf of the business, and print their name, title, email address, telephone number, and date.

If you do not prepare the return yourself, sign, date, and provide the requested taxpayer information.  The preparer must also print their name or the firm's name, sign the return, and provide the requested preparer information.  See Paid preparer’s responsibilities.

Paid preparer's responsibilities

Under the law, all paid preparers must sign and complete the paid preparer section of the form. Paid preparers may be subject to civil, criminal sanctions, or both if they fail to complete this section in full.

When completing this section, enter your New York tax preparer registration identification number (NYTPRIN) if you are required to have one. If you are not required to have a NYTPRIN, enter in the NYTPRIN excl. code box one of the specified 2-digit codes listed below that indicates why you are exempt from the registration requirement. You must enter a NYTPRIN or an exclusion code. Also, you must enter your federal preparer tax identification number (PTIN) if you have one; if not, you must enter your social security number.

Need help?

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New York State Law requires all government agencies that maintain a system of records to provide notification of the legal authority for any request for personal information, the principal purposes for which the information is to be collected, and where it will be maintained. To view this information, visit our website, or, if you do not have Internet access, call and request Publication 54, Privacy Notification. See Need help? for the Web address and telephone number.