XT 2003-09 - Excise And Motor Fuel Tax Division Information
Release – Cigarette Stamp Purchase On Credit Without A Bond -
July 16, 2003
Amended Substitute House Bill 95 includes language that
allows licensed cigarette dealers to purchase tax stamps on
credit without securing a bond, provided the dealer has been
in good standing with the Ohio Department of Taxation for the
last five years. This change is effective September 26, 2003.
The maximum value of stamps that may be purchased is 110
percent of the dealer's average monthly purchases over the
preceding calendar year. Ohio Revised Code Section 5743.05
states that the tax commissioner shall require payment for
the stamps within 30 days after purchase. If you choose to
purchase stamps on credit without a bond, there is also a
requirement that the payment must be made by electronic funds
transfer.
An application to purchase cigarette tax stamps on credit
without a bond will be sent to all dealers that qualify as of
September 26, 2003. If you do not qualify until after
September 26, 2003, you should file your application 30 days
prior to the date that you qualify. The application will be
available on our Web site. If you do not want to use this
method or do not qualify, you may either purchase stamps on
credit with a surety bond or pay for the stamps at the time
of purchase. Cigarette stamps may not be purchased on credit
from May 1 through June 30. Please contact the Excise Tax
Unit at (614) 466-7026 if you have any questions.