Information Release

XT 2002-02  - Cigarette Tax Increase For All Ohio Cigarette Retailers -June 7, 2002 

The 124th Ohio General Assembly recently passed Amended Substitute Senate Bill 261 which included a tax increase on cigarettes effective July 1, 2002. The new tax will be 55 cents per package of 20 and 68.75 cents per package of 25. The new tax on packages sold in Cuyahoga County will be 59.5 cents per package of 20 and 74.375 cents per package of 25.

As a result of the tax increase, you are required to pay a floor stock tax (difference between old and new rates) on all cigarettes held in inventory at the close of business on June 30, 2002. The tax is to be paid in three installments. One-third of the tax is due by July 31, 2002, one-third is due by August 31, 2002, and the final one-third is due by September 30, 2002. Enclosed is your first Ohio floor stock return that must be received with payment by July 31, 2002. The second and third tax returns will be mailed in August. If you pay the entire amount on your first tax return, you are not required to file the returns that are due in August and September.

The General Assembly also passed Amended Substitute Senate Bill 242 that increased the cigarette minimum markup for retailers from 6 percent to 8 percent of your cost. The new minimum prices are effective July 1, 2002, and apply to sales on and after that date. For your convenience a list of the new minimum prices is available on our Web site. If you have any questions or problems, please contact the Fuel Use and Excise Tax Unit at (855) 466-3921.