XT 2013-02 - Other Tobacco Products– Little Cigars: Issued July, 2013; Updated August, 2013
The purpose of this information release is to provide guidance to taxpayers following the recent enactment of Am. Sub. H.B. 59 of the 130th Ohio General Assembly.
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 (OTP) will continue to be taxed at a rate of 17% of the wholesale price. All distributors must indicate on the invoice: (1) that all OTP taxes are paid; and (2) their OTP account number.
A “little cigar” is defined as “any roll for smoking, other than cigarettes, made wholly or in part of tobacco that uses an integrated cellulose acetate filter or other filter and is wrapped in any substance containing tobacco, other than natural leaf tobacco.”
OTP Distributor Returns (OTP 2 & OTP 6)
Beginning with the October, 2013 reporting period (the return for which is due by November 30, 2013), Ohio’s OTP distributor tax return will look very different, but the substance remains intact (with a few additions). The old OTP distributor tax return will no longer be available on the Department’s website. Please contact the Excise & Energy Tax Division at the number below to amend a return for any month prior to October, 2013.
The most significant changes involve the reporting of little cigars (both on the face of the return and on the schedules) because little cigars must be reported separately.
To view the new returns, for in-state distributors click here and for out-of-state distributors click here.
OTP Manufacturer and Importer Reports
All Ohio manufacturers and importers are required to file monthly reports detailing the brand, wholesale cost, types, and quantities of all OTP shipped into Ohio, as well as the names and addresses of the recipients, and all invoice numbers and invoice dates. In addition to these current requirements, beginning October, 2013, Ohio manufacturers and importers will be required to reflect the sale of little cigars separately on each invoice from the amount of remaining OTP shipped.
To view the new report, please click here.
The Department will update this information release as more information becomes available. Please contact the Excise & Energy Tax Division at (855) 466-3921, Option 3, with any questions.