| Name / Term | Definition |
|---|---|
| Affixed stamps | Tobacco tax stamps that have been placed on a pack of cigarettes. |
| Alternative Nicotine Product | Any noncombustible product containing nicotine that is not made of tobacco and is intended for human consumption, whether chewed, absorbed, dissolved, or ingested by any other means. |
| Bonded Agent | A person in state who is a third-party agent of a manufacturer outside the state and who receives cigarettes in interstate commerce and stores the cigarettes for distribution or delivery to distributors under orders from the manufacturer. |
| Carton of Cigarettes | 10 packs of cigarettes with 20 cigarettes per pack. |
| Cash & Carry | No retail permit, usually sells from a car. |
| Cigar | A roll of tobacco wrapped in leaf tobacco or in a substance that contains tobacco. |
| Cigarette | A rolled product for smoking of any size or shape. |
| Cigarettes Stamps | Stamps applied to cigarette packs as a way to pay taxes to state. Distributors must apply stamps before selling to retailers. |
| Cigarette Wholesaler | A person, other than a licensed cigarette distributor, who sells taxed (stamped) cigarettes, obtained from a licensed distributor or another licensed wholesaler, for resale at a specific state location. A cigarette wholesaler may not hold a distributor's license. An out-of-state person selling at an out-of-state location is not a wholesaler and may not be licensed as a cigarette wholesaler. Cigarette wholesalers cannot purchase or be in possession of unstamped (untaxed) cigarettes. |
| Closed System, Cartridge, Pod | A sealed, prefilled, and disposable container of consumable material in which the container is inserted directly into a vapor product, and is not intended to be opened or accessible through customary or reasonably foreseeable handling or use. |
| Contraband Product | Any tobacco product which may not be legally possessed for resale |
| Counterfeit Stamp | A sticker, label, print, tag, or token that is used or is intended to be used to simulate a stamp and that is not authorized or issued by the comptroller. |
| Disposable System | A type of ENDS, which is designed to be thrown away once it runs out of charge or e-liquid. Primarily sold in c-stores. |
| Distributor |
A person who: A) receives untaxed tobacco products for the purpose of making a first sale in a state from a manufacturer outside the state or within the state or otherwise brings, or causes to be brought, into the state untaxed tobacco products for sale, use, or consumption; B) manufactures or produces tobacco products; or C) is an importer. |
| E-filing | Electronic filing. |
| Electronic Cigarettes | Any device or delivery system sold in combination with nicotine which can be used to deliver to a person nicotine in aerosolized or vaporized form, including, but not limited to, and e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. |
| Electronic Nicotine Delivery Systems (ENDS) | Any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device. There are three types of ENDS: Open System, Closed System, and Disposable System. |
| End Consumer | Buyer who will use the tobacco product. |
| Excise Tax | Indirect tax on regulated products like tobacco, alcohol and fuel. Tax collected from retailers by distributors or wholesalers for the state |
| Flavored Cigarettes | Cigarettes and RYO (Roll Your Own) tobacco that contain certain characterizing flavors (excluding menthol) are considered adulterated and are banned from manufacture, import, or sale in the United States. |
| Heated Tobacco Product |
A product containing tobacco that produces an inhalable aerosol by: A) heating the tobacco by means of an electronic device without combustion of the tobacco or B) heat generated from a combustion source that only or primarily heats rather than burns the tobacco. |
| Hemp | A hemp product is an item, contains less than 0.3 THC, legal at federal level since 2018, derived from or made by processing hemp. Consumable hemp is a liquid or solid hemp product intended to be introduced into the human body by ingestion or internal absorption. |
| Importer | Imports tobacco products such as cigarettes, cigars, chewing tobacco, snuff, pipe tobacco, or roll your own (RYO) tobacco into the United States for business purposes. |
| Liquid Nicotine | A liquid or other substance containing nicotine in any concentration that is sold, marketed, or intended for use in a nicotine product. |
| Loose Leaf Tobacco | Any leaf tobacco that is not intended to be smoked. Moist snuff excluded. |
| Manufacturer | A company that produces tobacco products. |
| Minimum Price | Minimum price laws are intended to prevent tobacco retailers from offering lower prices to draw customers into their stores and eroding the price increases achieved through tobacco excise taxes. Half of the states plus the District of Columbia have minimum price laws for cigarettes. |
| Minimum Wholesale and Retail Cigarette Prices | The Cigarette Marketing Standards Act (CMSA) established minimum wholesale and retail selling prices for cigarettes. You may not purchase or sell cigarettes at a price less than the minimum price set by law. Minimum wholesale and retail selling prices change when a manufacturer's price changes, or when the cigarette excise tax rate changes. |
| Moist Snuff | A tobacco product consisting of finely cut, ground, or powdered tobacco that is not intended to be smoked but shall not include any finely cut, ground, or powdered tobacco that is intended to be placed in the nasal cavity. |
| Nicotine Vapor Product | Any noncombustible product containing nicotine that employs a heating element, power source, electronic circuit, or other electronic, chemical, or mechanical means, regardless of shape or size, that can be used to produce vapor from nicotine in a solution or other form. |
| Open System | A vapor product that involves a rechargeable battery with reservoirs/tanks that can be refilled manually with e-liquid. Primarily sold in vapor stores. |
| Pack | A package containing either 20 or 25 cigarettes. |
| Pipe Tobacco | Any tobacco that, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered or purchased by consumers as tobacco to be smoked in a pipe. |
| Retailer | Sells to end consumers. |
| SKU | An individual stock keeping unit identifier used for tracking inventory. |
| Sub-Jobber | A category of wholesaler or distributor that are unique in that they purchase their inventory from someone else, like a distributor, who has paid all taxes due. |
| Tax Basis | Tax calculation based on cost, price, or quantity. |
| Tax Jurisdiction | Government taxing authority like federal, state, county, city, and other localities. |
| Tax Rate | Percentage applied to cost, price, or quantity. |
| Tobacco Leaf Free Nicotine Pouches | Products that are sold as pre-portioned pouches similar to snus, but instead of containing tobacco leaf, they are filled with white nicotine-containing powder. |
| Tobacco Tax | Taxes imposed by state on cigarettes and other tobacco products. |
| Unaffixed Stamps | Tobacco tax stamps not yet removed from the original roll as issued by DOR. |