Tobacco Tax News July 2022
California: Other Tobacco Products New Tax Rates Announced — May 18, 2022
The California Department of Tax and Fee Administration (CDTFA) announced the new tax rates on other tobacco products of 61.74% beginning July 1, 2022, through June 30, 2023. Tobacco products distributors need to apply this rate on all distributions of other tobacco products during this period and also pay this tax upon distribution of tobacco products in California. This tax is calculated according to the distributors wholesale cost which is the cost charged to the distributor tobacco products prior to any trade allowances or discounts.
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Indiana: Changes to Other Tobacco Products Taxes — March 22, 2022
Effective July 01, 2022, the state of Indiana passed a bill that levies a tax on distribution of vape e-liquid closed system cartridges to 15% of the wholesale price. The bill also imposes a tax on the distribution of alternative nicotine products at a rate of $0.40 per ounce of the product weight.
Indiana: Changes Implemented For Cigarette And Other Tobacco Products Reporting — March 22, 2022
Beginning July 01, 2022, Indiana Department of Revenue enacted changes for Cigarettes and Other Tobacco Products (OTP) reporting as follows:
- DOR updated the OTP tax reporting to include closed system cartridges and alternative nicotine products. A new column "C" is added to OTP-M monthly tax return form for including closed system cartridges.
- Revision of the current CIG-IS (inventory schedule), CIG-TS (transaction schedule) and CIG-SS (stamp schedule) to co-inside with the present uniformity standards.
- The current monthly return CIG-M is also changed by separating cover pages for CIG-RM (Cigarette Resident Monthly Cover Page) and CIG-NRM (Cigarette Non-resident Monthly Cover Page).
- Indiana DOR discontinued the usage of INtax portal and replaced it with new e-services portal, the Indiana Taxpayer Information Management Engine (INTIME), for reporting cigarette and tobacco products taxes. This portal provides customers with the opportunity to view their tax account, file and amend returns, make payments and also view any department correspondence.
Ohio: Maximum Rates For Premium Cigars Announced — April 4, 2022
As announced by the Ohio Department of Taxation, effective July 01, 2022, the new maximum tax rate on premium cigars is $0.58.
Utah: Cigarettes, Tobacco Products and Electronic Cigarettes Products Tax Information Publication Revised — June 30, 2022
The Utah state tax commission revised a publication that offers information on the tobacco, cigarette, nicotine and electronic cigarette products taxes.
New Mexico: Electronic Filing and Payment Mandates Published — June 9, 2022
The New Mexico Taxation and Revenue Department published electronic filing and electronic payment mandates for nine tax programs which includes cannabis excise tax and tobacco products tax. The e-filing and e-payment mandate is for cannabis excise tax and an e-file mandate for tobacco products taxes.
Virginia: Laws For Remote Retail Sales of Tobacco Products Enacted — May 3, 2022
The state of Virginia approved a law which changed the provisions related to tobacco products tax on pipe tobacco and cigars sold by the remote retail sellers to consumers in the commonwealth. This law levies a tax upon the privilege of selling tobacco products in the Commonwealth by a remote retail seller, distributor or any other person engaged in business. The law also complies any in-state or out-of-state retailer to possess a license to carry out such sales and also maintain records and file monthly reports to the department of taxation.
New York: Increased Interest Rates Announced — June 8, 2022
Beginning July 1, 2022, through September 30, 2022, the interest rates on underpayments of cigarette taxes in city of New York have gone up from 8% to 9%.
California: Out-Of-State Electronic Cigarette Retailers New Compliance Requirements — June 14, 2022
Starting July 1, 2022, a California Electronic Cigarette Excise Tax (CECET) at the rate of 12.5% on the retail selling price of electronic cigarette sold with or containing nicotine needs to be collected by retailers providing electronic cigarettes to California purchasers. Out of state retailers selling electronic cigarettes containing nicotine to consumers in California need to already have a cigarette and tobacco products distributor license and also now require a CECET account. They need to collect the CECET from Consumers in California at the time of sale of electronic cigarettes, file a CECET return electronically and pay the CECET to the CDTFA.
Florida: Tax Exemption Includes Sales Made on Space Force Post Exchanges — June 17, 2022
Beginning July 1, 2022, Florida expanded its cigarette and tobacco products tax exemption to members of the Armed Services for cigarettes sold at ship service stores, post exchanges, ship stores, or base exchanges to now apply to the Space Force Post Exchanges.
California: Los Angeles Flavored Tobacco Ban — June 21, 2022
The Los Angeles City Council passed an ordinance to ban the sale of flavored tobacco effective January 1, 2023. Under this law, tobacco retailers are banned from selling or possessing with an intent to sell any flavored tobacco product or part which imparts a characterizing flavor.
