Information Release

XT 2009-03 - Excise and Motor Fuel Tax Division Information Release – Licensing Change for Wholesale Cigarette Dealers - Dec. 31, 2009

The recently enacted budget bill, Am. Sub. H.B. 1, made changes to the fees, the distribution of the revenue, and the structure of the cigarette licensing provisions set forth in R.C. 5743.15. All these changes are effective on Jan. 1, 2010.

The new annual fee for the cigarette wholesaler license will be $1,000. (The current fee is $200.) The $1,000 fee will now be prorated by the effective calendar date. The new licenses will have a minimum fee of $200 and will not be prorated below this amount. Wholesale cigarette licenses will no longer be issued by the county auditors; these licenses will be issued by the Department of Taxation. The fourth Monday of May will remain the renewal date for both the wholesale and retail cigarette licenses.

In addition, the new fees on all retail cigarette licenses will be $125 per physical location. There will no longer be a fee reduction for more than five licenses issued in a single county. Also, there will no longer be assignment of either wholesale or retail licenses between separate business entities. As a licensed cigarette wholesaler, you will still be required to verify your customers are licensed cigarette retail dealers.

Since the new fee structure is effective on Jan. 1, 2010, any new applicants for a retail cigarette retail dealer license or wholesale cigarette license will pay a prorated fee for the period Jan. 1, 2010, through May 23, 2010. Any applicants after the fourth Monday in May 2010 will be required to pay the prorated amount set forth in the new fee structure. There will not be an additional renewal fee required for the 2009 - 2010 license year for all cigarette licenses that have been issued prior to Jan. 1, 2010.

Should you have any questions regarding these changes, please contact the Excise Tax Section.

Ohio Department of Taxation
Excise Tax Section
P.O. Box 530
Columbus, Ohio 43216-0530
Telephone:  (855) 466-3921
Fax:  (206) 350-6722
Web site:  tax.ohio.gov