XT 2007-01 - Excise and Motor Fuel Tax Division Information
Release – Cuyahoga County Cigarette Tax Increase - January
11, 2007
The purpose of this release is to notify you that on November
7, 2006, voters in Cuyahoga County passed a resolution
levying an additional excise tax on cigarettes for the
purpose of funding the arts and cultural facilities and
programs in that county. This additional levy becomes
effective on February 1, 2007.
The additional excise tax is 30 cents for a pack of 20
cigarettes and is in addition to the state excise tax of
$1.25 per pack of 20 cigarettes and the $.045 cents per pack
of 20 cigarettes that is currently in effect in Cuyahoga
County. The total tax on packages sold in Cuyahoga
County will be $1.595 per pack of 20 cigarettes and $1.99375
per pack of 25 cigarettes.
As part of this additional levy, retailers
are required to pay a floor stock tax (which is the
difference between the old rates and the new rates) on all
cigarettes held in inventory at the close of business on
January 31, 2007. That tax is due on or before March 5,
2007. A preprinted floor stock tax return is
enclosed. Please note that the Department is using your
county assigned retail license number as your Ohio Department
of Taxation account number.
Wholesalers are not required to file a floor stock tax
return. However, the Department has ordered new tax
stamps that will be sold at the new Cuyahoga County
rate. Absent problems with obtaining these new stamps,
they will be available for purchase on January 25,
2007. The previous Cuyahoga County tax stamps will not
be sold after that date unless the wholesaler can show that
such stamps are necessary in order to service Cuyahoga County
retailers before January 31, 2007. Wholesalers with
current Cuyahoga County tax stamps purchased at the old rate
will be permitted to affix those stamps and distribute to
retailers through February 28, 2007. Wholesalers will
not be authorized to affix or distribute Cuyahoga County tax
stamps purchased at the old rate after February 28,
2007. Wholesalers with affixed inventory as of February
28, 2007, will need to re-stamp this product with the new tax
stamp and complete a refund claim, supported by an affidavit,
for any unsold affixed stamps. Any unaffixed stamps
should be returned for refund. All refund claims will
be processed without delay. Retailers should not accept
cigarettes after February 28, 2007, that do not bear the new
tax stamp.
Wholesalers distributing into Cuyahoga County must track all
sales into Cuyahoga County of cigarettes stamped with the old
tax stamp and cigarettes stamped with the new tax
stamp. These wholesalers will be required to file a
schedule, with their regular semi-annual return, separating
sales made with the old stamp affixed and sales made with the
new stamp affixed.
Please contact the Excise Tax Section of this Department with
any questions.
Ohio Department of Taxation
Excise Tax Section
P.O. Box 530
Columbus, Ohio 43216-0530
Telephone: (614) 466-7026
Fax: (614) 728-1806
Website: tax.ohio.gov