EXC 2015-01 – Insurance on Ohio Cigarette Tax Stamps: Issued February, 2015; Updated March, 2015
The purpose of this information release is to supplement EXC 2014-01 – Transition of Responsibilities Concerning Ohio Cigarette Tax Stamps: Issued and Revised September, 2014 and remind the Ohio- licensed stamping wholesalers of the importance of insuring their cigarette tax stamp shipments. Please note that the Department does not require that wholesalers insure or declare a value for their shipments, but rather offers the option as a suggested practice.
Pursuant to R.C. 5743.03(H), which was amended and effective in September of 2012, Ohio-licensed stamping wholesalers remain responsible for all shipping costs associated with cigarette tax stamp orders. One cost is either obtaining insurance or declaring a value on the shipment of the cigarette tax stamps. All Ohio-licensed stamping wholesalers have the option of picking up their cigarette tax stamps or choosing a delivery service to obtain their cigarette tax stamp orders. The use of these outside delivery services sometimes lends itself to potential package handling problems. Once a package containing cigarette tax stamps is picked up by a third-party delivery service on behalf of a particular Ohio-licensed stamping wholesaler, that wholesaler becomes responsible for the tax stamps covered by that specific order and related invoice(s). The Ohio-licensed stamping wholesalers are strongly encouraged to obtain insurance from or declare a value with their delivery service. The Department will declare a value on behalf of the Ohio-licensed stamping wholesaler on the shipment of the cigarette tax stamps of up to $50,000 only if requested by the Ohio-licensed stamping wholesaler on their order form. If the tax stamps are lost during the shipment process, failure to obtain insurance or declare a value will result in the Ohio-licensed stamping wholesaler being charged the full face value of the cigarette tax stamp order and related invoice and will remain charged to and payable by the Ohio-licensed stamping wholesaler within the appropriate time-frame required by R.C. 5743.05.
Please see the frequently asked questions on the Department’s website at tax.ohio.gov for additional information regarding shipping.
Please contact the Excise & Energy Tax Division at (855) 466-3921, option 3 with any questions.