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://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 (614)
466-7026 if you have any questions.