Information Release

XT 2003-14 Excise Tax Division Information Release – Notice About Cigarette Minimum Prices And Cigarette Master Settlement Agreement Reporting – October 2, 2003

CIGARETTE MINIMUM PRICES

The Ohio Department of Taxation has learned that the wholesale price of cigarettes may increase due to changes in the marketplace. The manufacturer’s invoice price determines the minimum price that wholesalers must charge retailers. If wholesalers charge more than the minimum price, the retail minimum price is based on what the retailer is charged and not what the wholesaler pays for the cigarettes. The cost of cigarettes to the retailer is the price listed on their invoice plus any charge added to the invoice that is related to either the quantity or price of the cigarettes. Charges related to timely payment do not increase the retailer’s cost when computing the retail minimum price. To compute the correct retail minimum price, simply go to the spreadsheet on Taxation’s Web site (http://www.tax.ohio.gov/). Locate the total price per carton that you are charging the retailer under either the Wholesale Minimum Price Delivered or the Wholesale Minimum Price Cash & Carry column, whichever is applicable. Then continue to the right to determine the new retail minimum price.

CIGARETTE MASTER SETTLEMENT AGREEMENT REPORTING

The Attorney General’s Tobacco Directory lists all brands of cigarettes and RYO tobacco that may be sold in Ohio. The list includes brands made by both participating manufacturers and non-participating manufacturers. You must still report cigarette and RYO brands made by non-participating manufacturers on your monthly or annual Master Settlement Agreement Report (ET-60). When using the Attorney General’s Tobacco Directory, there are three options to choose from under Choose Manufacturer Type. The first option, Participating in the Master Settlement Agreement, lists the brands that do not have to be reported. The second option, Non-Participating in the Master Settlement Agreement, lists the brands that must be reported on the ET-60. The third option, All Directory Listed Manufacturers, lists all brands that may be sold in Ohio. This option will not show you the type of manufacturer.

Please contact the Motor Fuel and Excise Tax Unit at (855) 466-3921 if you have any questions.