XT 2017-03 - Other Tobacco Products–Premium Cigars: Issued July, 2017; Updated August, 2017
The purpose of this updated information release is to provide guidance to taxpayers following the recent enactment of Am. Sub. H.B. 49 of the 132nd Ohio General Assembly.
Effective for invoices dated on or after July 1, 2017, the 17% other tobacco products (“OTP”) tax on the new category of OTP--premium cigars--is capped at $.50 per cigar. The remaining OTP types will continue to be taxed at their current rates. All distributors must indicate on the invoice: (1) that all OTP taxes are paid; and (2) their OTP account number.
A “premium cigar” is defined as any roll for smoking, other than cigarettes and little cigars, made wholly or in part of tobacco and that has all the following characteristics:
- The binder and wrapper of the roll consists entirely of leaf tobacco;
- The roll contains no filter or tip, nor any mouthpiece consisting of a material other than tobacco; and
- The weight of one thousand such rolls is at least six pounds.
OTP Distributor Returns (OTP 2 & OTP 6)
Beginning with the July, 2017 reporting period (the return which is due by August 23, 2017), Ohio’s OTP distributor tax return will have some additions, but the substance remains intact. The old OTP distributor tax return will no longer be available on the Department’s website. Please contact the Excise & Energy Tax Division at the number below to amend a return for any month prior to July, 2017.
The most significant changes involve the reporting of premium cigars (both on the face of the return and on the schedules) and calculating the tax cap, because premium cigars must be reported separately. To view the new returns, for in-state distributors click here and for out-of-state distributors click here.
OTP Manufacturer and Importer Reports
All Ohio manufacturers and importers are required to file monthly reports detailing the brand, wholesale cost, types, and quantities of all OTP shipped into Ohio, as well as the names and addresses of the recipients, and all invoice numbers and invoice dates. In addition to these current requirements, beginning July, 2017, Ohio manufacturers and importers will be required to reflect the sale of premium cigars separately on each invoice from the amount of remaining OTP shipped.
To view the new report, please click here.
The Department will update this information release as more information becomes available. Please contact the Excise & Energy Tax Division at (855) 466-3921, Option 3, with any questions.