Department of Taxation and Finance

Instructions for Form MT-201 Tobacco Products Use Tax Return

MT-201-I

(9/26)

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All citations are to New York State Tax Law articles and sections unless specifically noted otherwise.

General information

Who must file and pay the tobacco products use tax

You must file Form MT-201, Tobacco Products Use Tax Return, and pay the tobacco products use tax if you use tobacco products in New York State unless:

• the New York State tobacco products excise tax has already been paid; or
• use of the tobacco products is exempt pursuant to Tax Law Article 20 (see Exemptions from the tobacco products use tax); or
• you use 250 cigars or fewer (including little cigars), 5 pounds of tobacco or less (including snuff), 36 ounces of roll-your-own (RYO) tobacco or less, or 75 units of alternative nicotine products or fewer. 

Exception: You do not need to pay the tobacco products use tax on tobacco products you possess for sale. For additional information, see Requirements for possession for sale. 

The rate of the tobacco products use tax is equal to the rate of the tobacco products excise tax. You must pay either the tobacco products excise tax or the tobacco products use tax, not both.

When to file

You must file Form MT-201 and pay the use tax within 24 hours after bringing, receiving, or using (excluding possessing for sale) tobacco products in New York State.

Rates

The New York State use tax rate on tobacco products (other than snuff and little cigars), including alternative nicotine products, is 75% (0.75) of the wholesale price.

The New York State use tax rate on snuff is $2 per ounce, and a proportionate rate on any fraction of an ounce. The tax rate for cans or packages of snuff with a net weight of less than one ounce is $2 per container.

The New York State use tax rate on little cigars is $0.2675 for each individual little cigar. For packs containing more than one little cigar, multiply the number of little cigars in each pack by the tax rate.

Exemptions from the tobacco products use tax

You must pay the tobacco products use tax on all tobacco products you use in New York State, unless:

• the New York State tobacco products excise tax (imposed by Tax Law § 471‑b) has been paid, as evidenced by an invoice from the distributor or dealer stating the tobacco products excise tax has already been paid directly to New York State; or
• you use tobacco products that are exempt from the New York State tobacco products excise tax by Tax Law § 471‑b (governmental use by the United States, New York State, and the United Nations, and use by authorized persons purchasing from a voluntary unincorporated organization of the armed forces of the U.S.); or
• you are using tobacco products you brought into New York State, and the amount of the tobacco products does not exceed (a) 250 cigars (including little cigars), (b) 5 pounds of tobacco (including snuff), (c) 36 ounces of RYO, or (d) 75 units of alternative nicotine products.

However, the following are not exempt: 

• Tobacco products you shipped into New York State by mail.
• If you bring more than 250 cigars (including little cigars) into New York State, all the cigars are subject to tax. If you bring more than 5 pounds of tobacco (including snuff) into New York State, all the tobacco is subject to tax. If you bring more than 36 ounces of RYO tobacco into New York State, all the RYO tobacco is subject to tax. If you bring more than 75 units of alternative nicotine products into New York State, all of the alternative nicotine products are subject to the tax.
• If you acquire tobacco to give as a gift to another individual, those tobacco products are not exempt because the law does not exempt gifts of tobacco products.

Cigarette use tax

You must file Form CG-15, Cigarette Use Tax Return, and pay the cigarette use tax if you use cigarettes in New York State unless:

• the New York State cigarette excise tax has already been paid;
• use of the cigarettes is exempt pursuant to Tax Law Article 20; or
• you use 400 cigarettes or fewer.

If cigarette packs are unstamped or stamped with another taxing jurisdiction’s stamps, the cigarettes are considered unstamped for New York State tax purposes and you must pay the New York State cigarette use tax. New York City also imposes an excise tax on cigarettes used in New York City.

Requirements for possession for sale

If you possess tobacco products for sale, you may need to be licensed with New York State as a wholesale dealer of tobacco products, a distributor of tobacco products, or both, as well as registered as a retail dealer. For applications, information, and the appropriate tax returns, visit our website (see Need help?) and search: tobacco.

Definitions

Use means the exercise in New York State of any right or power, actual or constructive, with respect to tobacco products. It includes, but is not limited to, the receipt, storage, or any keeping or retention for any length of time, but does not include possession for sale.

Tobacco products means any cigar, including a little cigar, tobacco, or alternative nicotine products, other than cigarettes, intended for the consumption by smoking, chewing, or as snuff. 

Cigar means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco that is a cigarette). Cigar also includes, except where expressly excluded, any little cigar.

Little cigar means any roll for smoking made wholly or in part of tobacco if such product is wrapped in any substance containing tobacco, other than natural leaf tobacco wrapper, and weighing not more than four pounds per thousand or with a cellulose acetate or other integrated filter.

Alternative nicotine products are any noncombustible products, other than vapor products, which contain nicotine, but not tobacco, and are intended for human consumption, whether chewed, absorbed, dissolved, or ingested by any other means. Alternative nicotine products do not include any product regulated as a drug or device by the U.S. Food and Drug Administration (FDA) under 21 U.S.C. § 351 and the sections that follow. For example, certain smoking cessation drugs and devices regulated by the FDA are not considered alternative nicotine products.

Unit as it relates to alternative nicotine products, means any canister, pack, box, carton, or container of any kind or, if no other container, any wrapping, in which an alternative nicotine product is offered for sale, sold, or otherwise distributed to consumers.

Roll-your-own tobacco means any tobacco product that, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes. 

Snuff means any finely cut, ground, or powdered tobacco that is not intended to be smoked. 

Person means an individual, copartnership, limited liability company, society, association, corporation, joint stock company, and any combination of individuals; and an executor, administrator, receiver, trustee, or other fiduciary.

Wholesale price means the price for which the tobacco products are sold to a distributor, before the allowance of any discount, trade allowance, rebate, or other reduction, and including the federal excise taxes paid by the seller. The invoice received by a distributor for its purchase of a tobacco product is presumptive evidence of the wholesale price of the tobacco product.

Note: The transfer of tobacco products at no charge, gratis, or when listed as free goods, is considered a sale with a discount. You must pay the use tax on these tobacco products based on the ordinary or usual wholesale price.

Specific instructions

Complete all applicable parts before calculating the tobacco products use tax due in part 4.

Taxpayer identification

Enter your legal name, complete address, and Social Security number. If you are filing as a business rather than as an individual, enter your employer identification number (EIN).

Part 1: Snuff

Complete this entire section.

List all snuff you received, possessed, or otherwise brought into New York State unless:

• the New York State tobacco products excise tax has been paid; or
• use of the snuff is exempt from Tax Law Article 20; or
• you use 5 pounds of tobacco products or less (including snuff).

See Example.

If you have more entries than will fit on the form, attach additional sheets.

Example: On June 5, you acquired five cans of snuff that were each under one ounce. On the same day, you acquired seven cans of snuff that were each 1.25 ounces for a total of 8.75 ounces of snuff in containers of more than one ounce. You calculate the use tax on snuff as follows:

Part 2: Little cigars

Complete this entire section.

List all little cigars you received, possessed, or otherwise brought into New York State unless:

• the New York State tobacco products excise tax has been paid; or
• use of the tobacco products is exempt from Tax Law Article 20; or
• you use 250 little cigars or fewer.

If you have more entries than will fit on the form, attach additional sheets.

Part 3: Tobacco products other than snuff and little cigars

Complete this entire section.

List all tobacco products (other than snuff and little cigars) you received, possessed, or otherwise brought into New York State unless:

• the New York State tobacco products excise tax has been paid; or
• use of the tobacco products is exempt from Tax Law Article 20; or
• you use 250 cigars or fewer, 5 pounds of tobacco or less, 36 ounces of RYO tobacco or less, or 75 units of alternative nicotine products or fewer.

If you have more entries than will fit on the form, attach additional sheets.

Part 4: Calculation of tobacco products use tax

Line 12: Enter the New York State use tax on snuff from line 4. Do not round this number.

Line 15: If you do not pay the tax due by the due date, we will charge you a penalty of 50% (0.50) of the tax due for the first month or part of the month it is late, plus 1% (0.01) of the tax due for each additional month.

In addition, if you do not file the required returns or pay any tax due under Tax Law Article 20, you are subject to criminal penalties under Tax Law Article 37. 

Line 16: If you do not pay the tax due on or before the original due date, you must pay interest on the amount of the underpayment from the original due date of the return (without regard to any extension of time for filing) to the date the tax is paid. Interest is always due on any underpayment of tax. An extension of time for filing does not extend the due date for payment of tax.

You may calculate your penalty and interest by using our online Penalty and Interest Calculator (visit our website and search: penalty), or you may call and we will calculate the penalty and interest for you (see Need help?).

Line 18: Make your check or money order payable in U.S. funds to: Commissioner of Taxation and Finance. 

Fee for payments returned by banks

The law allows the Tax Department to charge a $50 fee when a check, money order, or electronic payment is returned by a bank for nonpayment. However, if an electronic payment is returned as a result of an error by the bank or the department, the department will not charge the fee. If your payment is returned, we will send a separate bill for $50 for each return or other tax document associated with the returned payment.

Where to file

Mail your completed Form MT-201, copies of your purchase invoices, and payment to:

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

Need help?

Visit our website at www.tax.ny.gov

• get information and manage your taxes online
• check for new online services and features

Privacy notification

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 purpose(s) 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.