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Tobacco Tax News

Tobacco Tax News April 2021

State Tobacco/Cigarette Tax Update April 2021

Virginia: Biennial Budget Legislation Containing Tax Provisions Enacted - Apr. 12, 2021 

Virginia enacted its biennial budget containing various cigarette tax, tobacco products tax, and retail sales and use tax provisions.

Cigarette Tax

Effective July 1, 2020, the state cigarette tax rate is 3.0 cents per cigarette sold (60 cents per pack of 20 cigarettes).

Tobacco Products Taxes

Effective July 1, 2020, the tobacco products tax rates on all products subject to the tax are doubled.

Liquid nicotine

Effective July 1, 2020, the tobacco products tax is imposed on liquid nicotine products at the rate of $0.066 per milliliter.

Heated tobacco products

Effective January 1, 2021, the tobacco products tax is imposed on any heated tobacco product at the rate of 2.25 cents per stick.
 

Kentucky: New Reporting Requirements for Electronic Nicotine Delivery Systems Discussed - Apr. 7, 2021 

Those who sell, transfer, or ship for-profit Electronic Nicotine Delivery Systems (ENDS) into Kentucky from outside the state are required to register and file monthly cigarette and tobacco products tax reports with the Kentucky Department of Revenue. Additionally, those who sell, transfer, or ship for-profit cigarettes, smokeless tobacco products, or ENDS in interstate commerce must register and file monthly reports with the tobacco tax administrator of the state where the shipment is delivered. However, current Kentucky filers filing and reporting on sales of vapor products must not be affected by the new federal requirement as the state electronic filing format already captures all data needed. 

Additional information on the electronic registration and filing requirements is available at Tobacco And Vapor Products Taxes

California: New Reporting Requirements for Electronic Nicotine Delivery Systems Discussed - Mar. 26, 2021 

Those who sell, transfer, or ship for-profit Electronic Nicotine Delivery Systems (ENDS) into California from outside the state are required to register and file monthly cigarette and tobacco products tax reports with the California Department of Tax and Fee Administration (CDTFA). Additionally, those who sell, transfer, or ship for-profit cigarettes, smokeless tobacco products, or ENDS in interstate commerce must register and file monthly reports with the tobacco tax administrator of the state where the shipment is delivered. All such taxpayers may register beginning April 1, 2021. The CDTFA will automatically register current out-of-state licensed tobacco products distributors selling ENDS into California.

Tennessee: Guidance Issued on Delivery Sales of Electronic Nicotine Delivery Systems (ENDS) - Mar. 16, 2021 

The Prevent All Cigarette Trafficking Act (PACT Act, also known as the Jenkins Act), was amended effective May 10, 2021, to include electronic nicotine delivery systems (ENDS) in its definition of "cigarette" for Tennessee cigarette and tobacco products tax purposes.

Registration and Reporting Requirements
The amended PACT Act provides that any person who sells, transfers, or ships for profit ENDS in interstate commerce, or who advertises such products for sale, must: register with the tobacco tax administrator of the state into which the shipment is made; and file monthly reports with the tobacco tax administrator no later than the 10th day of each month.

The Tennessee Department of Revenue is the tobacco tax administrator for shipments into Tennessee. Beginning May 10, 2021, and the 10th of every month thereafter, any entity shipping ENDS into Tennessee from another state is required to report all such shipments to the Department. Anyone located in Tennessee and shipping ENDS within state lines is not required to file PACT Act reports regarding these shipments with the Department.

Oregon: Reminder Issued on Tax Due on Inhalant Delivery Systems - Mar. 8, 2021 

The Oregon Department of Revenue has reminded retailers, distributors, and wholesalers that tobacco products tax on inhalant delivery products is due by April 30, 2021. Taxpayers need the name, mailing address, and federal tax identifier of the entity for which they are filing. Only one return is needed for multiple locations under the same identifier. Retailers do not have the option of filing electronically.

 

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