Information Release

CAT 2006-01 - Applicable Excise Tax Rates for Purposes of the Commercial Activity Tax; Issued January, 2006; Updated February, 2007; Updated March 2009; Updated October 2013 

The purpose of this release is to provide taxpayers with the effective excise tax rates for purposes of the commercial activity tax (“CAT”). This release is updated to reflect a change to the state excise tax rate of “little cigars” for purposes of the other tobacco products tax. The rates below are the most current rates known to the department as of October 2013. Taxpayers are advised to verify the rates before relying on this release in order to compute any exclusions from their taxable gross receipts pursuant to divisions (F)(2)(q), (F)(2)(r), and (F)(2)(s) of section 5751.01 of the Revised Code. 

OHIO & FEDERAL EXCISE TAX RATES

PRODUCT

FEDERAL

STATE

CUYAHOGA COUNTY, OHIO

Cigarettes (Pack of 20 )

$1.0066

$1.25

$.345

Cigarettes (Pack of 25)

$1.25825

$1.5625

$.43125

Other Tobacco Products (in pounds)

*

37% of the wholesaler’s price on "little cigars" **

17% of the wholesaler's price on any remaining tobacco products ***

N/A

Beer (in gallons)

$.58

$.18

$.16

Wine greater than 1/2%, but less than 14% alcohol (in gallons)

$1.07

$.32

$.32

Wine greater than 14%, but less than 21% alcohol (in gallons)

$1.57

$1.00

$.32

Vermouth less than 21% alcohol (in gallons)

*

$1.10

$.32

Mixed Beverages with less than 21% alcohol (in gallons)

*

$1.20

$.32

Apple Cider with greater than 1/2%, but less than 6% alcohol (in gallons)

$.226

$.24

$.24

Naturally Sparking with less than 21% alcohol (in gallons)

$3.40

$1.50

$.32

Artificially Carbonated

$3.30

$1.50

$.32

Wine with greater than 21%, but less than 24% alcohol (in gallons)

$3.15

N/A

N/A

Hard Liquor (in gallons)

$13.50

$3.38

$3.00

Motor Fuel – (in gallons)

$.244

$.28

N/A

Motor Fuel – Gasoline (in gallons)

$.184

$.28

N/A

* For the federal excise tax rates on these or any of the above products, please consult the Web site of the Alcohol and Tobacco Tax and Trade Bureau at www.ttb.gov.

** Effective for invoices dated on or after October 1, 2013, little cigars will be taxed at a rate of 37% of the wholesale price of the product. The remaining other tobacco products will continue to be taxed at a rate of 17% of the wholesale price.  Please see information release XT 2013-02 - Other Tobacco Products– Little Cigars: Issued July, 2013; Updated August, 2013 for more information regarding this change to the other tobacco products tax. 

*** As a safe harbor, retailers who wish to exclude the portion of excise taxes paid on other tobacco products, but do not know the price the wholesaler paid for the products, may calculate this exclusion by taking eighty per cent of the price paid to the wholesaler for the purchase of the other tobacco products, multiplied by seventeen per cent or, in the case of little cigars, thirty seven percent. It is important to note that, in determining this exclusion, retailers must base their calculation on their purchase price from the wholesaler, and not their selling price to the consumer or another retailer.