Tax Rules: Final: 5703-15-21
5703-15-21 Sale of other tobacco products between
licensed other tobacco product distributors.
(A)(1) As used in this rule, "sale" has the same meaning as
in division (D) of section 5743.01 of the Revised Code and
includes delivery or other distribution.
(2) All persons dealing in sales of other tobacco products,
including persons dealing in sales of previously taxed other
tobacco products (secondary distributor), other than persons
dealing exclusively in sales of previously taxed other
tobacco products to ultimate consumers, must be licensed
under section 5743.61 of the Revised Code.
(B)(1) Retailer dealers must purchase other tobacco products
only from licensed other tobacco products distributors and
cannot purchase from unlicensed distributors or other
(2) Licensed other tobacco products distributors selling to
retailers must use the account number assigned by the tax
commissioner pursuant to section 5743.54 of the Revised Code
on all transactions of other tobacco products and may not use
another licensed distributor's license number, even though
that other distributor paid the tax.
(C)(1) Unless the out-of-state supplier of other tobacco
products provides an invoice stating that the tax imposed by
section 5743.51 of the Revised Code has been paid along with
such supplier's assigned account number as required by
section 5743.54 of the Revised Code, the first receiver of
untaxed other tobacco products in this state is liable for
the tax imposed under section 5743.51 of the Revised Code.
(2) Unless the out-of-state supplier of untaxed other tobacco
products is a registered manufacturer, importer, or broker of
other tobacco products under section 5743.66 of the Revised
Code, such supplier may not ship untaxed other tobacco
products into this state without an authorization from the
commissioner. The commissioner may authorize repeated
transactions of such shipments for a specified period of
(3) The request must be made on a form and in a manner
prescribed by the commissioner for such purpose and must
contain the brands, quantity, date of shipment, method of
shipment, and supplier, as well as any other information
required by the commissioner. If such shipment involves
roll-your-own tobacco not contained on the directory provided
for in section 1346.05 of the Revised Code, documentation may
be required that such roll-your-own tobacco is legal for sale
in another state.
(4) Approved requests will be sent to both the supplier and
receiving distributor and must be carried in the vehicle
actually transporting such other tobacco products. The
receiving distributor must, within seventy-two (72) hours
excluding weekends and holidays, notify the commissioner if
the quantities received do not correspond with the quantities
contained on the commissioner's authorization form. Absent
notification to the commissioner, the receiving wholesaler
will be presumed to have received the quantity approved for
shipment along with the resulting tax liability.
(5) Shipments of untaxed other tobacco products between
distributors in this state are prohibited.
(6) Shipments of other tobacco products on which the tax is
paid are permitted between licensed other tobacco products
distributors, provided that the distributor selling such
products purchases the products from a registered
manufacturer, importer, or broker.
(7) The commissioner reserves the right to verify, upon
request, that the supplying wholesaler is the first purchaser
from an other tobacco products manufacturer, importer, or
(8) Sales invoices made by licensed distributors of other
tobacco products received from another licensed distributor
must contain the license number issued to the distributor
receiving the products from such other distributor.
(D) All licensed distributors of other tobacco products are
required to file monthly reports on a form and in a manner
prescribed by the commissioner detailing the invoice number,
the invoice date, the price, and any other information
prescribed by the commissioner. Alternative filing
frequencies may be established if the commissioner determines
that monthly filing is not warranted.
(E)(1) Both the supplying distributor and receiving
distributor are required to file reports of shipments made
and received. These reports are in addition to any tax
returns required to be filed under section 5743.52 of the
(2) Records of all licensed distributors must be made
available to the commissioner, upon request, including
purchases of both taxed and untaxed products, and any other
information the commissioner deems necessary to verify the
(F) Whoever violates any provision of this rule is subject to
having its products confiscated under section 5743.55 of the
Revised Code. Such confiscation is in addition to the
penalties available under sections 1346.09, 1346.10, and
5743.99 of the Revised Code or any other applicable provision
Promulgated under: 5703.14
Authorized by: 5703.05, 5743.51
Prior effective dates: 03-05-06