XT 2003-13 Excise And Motor Fuel Tax Division Information
Release – Cigarette Master Settlement Agreement Changes –
Cigarette Retailers - August 8, 2003
The 125th General Assembly recently passed Amended Substitute
House Bill 95 that changes several of the requirements
surrounding the Cigarette Master Settlement Agreement (MSA).
These changes will affect tobacco manufacturers, wholesalers
and retailers.
Currently, cigarette and roll-your-own tobacco manufacturers
must be either a signatory to the MSA or make payments to a
qualified escrow account. This legislation provides for a Web
site where all brands, that have met one of the above two
requirements, will be listed. The Attorney General will
establish and maintain the Web site. The Web site will be
operational after August 11, 2003, and can be checked by
going to www.ag.state.oh.us and under Current Features click
on Tobacco Directory. The Web site is public information and
there are no passwords or other restrictions. The Web site
can be accessed from any computer connected to the Internet.
This includes computers at your residence or local library
Ten days following the initial listing of the brands to the
Web site, it will be illegal to sell or offer to
sell in Ohio any brand of cigarette or roll-your-own tobacco
that is not included on this list. Brands not on the
list may be in your possession waiting to be returned to your
supplier, but may not be in your possession for sale or
distribution in Ohio. The Department of Taxation may
confiscate any cigarettes or roll-your-own tobacco found to
be in violation of the statute and may revoke the license of
any retail dealer that distributes or sells such products in
Ohio. Wholesale and retail dealers may also be charged with a
first-degree misdemeanor for the first offense and a
fourth-degree felony for subsequent offenses. Section 1346.09
(B) of the Ohio Revised Code entitles the state to recover
the costs of the investigation, expert witness fees, court
costs and reasonable attorney‘s fees associated with any
action to enforce Sections 1346.05 through 1346.10 of the
Ohio Revised Code.
Ohio stamped cigarettes and tax paid other tobacco products
that may not be sold in Ohio should be returned to your
supplier. If this cannot be done, you may apply for a refund
of the tax provided that the product is destroyed. Do
not destroy the product before contacting the Excise and
Motor Fuel Tax Division.
Products will be listed by brand families. For example, XYZ
Light and XYZ Menthol will be listed as XYZ. Once a product
is placed on the list it may be sold until a date is placed
in the removal field. Product may not be sold on or after
that date. You should periodically check this site for
changes to the list.
The Attorney General will notify the Department of Taxation
of any pending additions or removals to the list. The
Department of Taxation will in turn notify cigarette
retailers at least ten days prior to the effective date of
the pending additions or removals. To give you the maximum
time to either sell the product or return it to your supplier
before the removal date, the Department of Taxation will
notify you by e-mail. In order for you to receive this
notification, please complete the enclosed form with the
e-mail addresses that you would like to receive this
notification and return it in the envelope provided as soon
as possible. It is your responsibility to notify the
Department of Taxation when there are e-mail address changes.
Any questions may be directed to the:
Ohio Department of Taxation
Excise and Motor Fuel Tax Division
P.O. Box 530
Columbus, Ohio 43216-0530
Telephone: (614) 466-7026
Fax: (614) 752-8644