Information Release

XT 2015-01 – Cigarette Tax Increase for All Ohio Cigarette Wholesalers and Retailers – Issued July, 2015

The 131st Ohio General Assembly recently passed Amended Substitute House Bill No. 64, which includes a tax increase on cigarettes effective July 1, 2015. The new tax will be $1.60 per package of 20.

Cigarette Retailers:

As a result of the tax increase, you are required to pay a 35 cent per package floor stock tax (the difference between the old $1.25 per package tax rate and new $1.60 per package tax rate) on all cigarettes on hand as of the beginning of business on July 1, 2015. Retail floor stock tax returns are due with payment on or before September 30, 2015. The return, CIG-56R, is available on the Department’s website at: www.tax.ohio.gov/Forms.aspx

Non-stamping Cigarette Wholesalers:

As a result of the tax increase, you are required to pay a floor stock tax on your inventory of Ohio stamped packages as of the beginning of business on July 1, 2015. Non-stamping wholesaler floor stock tax returns are due with payment on or before September 30, 2015. The return, CIG-56NS, is available on the Department’s website at: www.tax.ohio.gov/Forms.aspx

Please notify all retail customers and direct them to this information release and the Department’s website. An account number will be assigned to the retailer when they contact the Ohio Department of Taxation.

Stamping Cigarette Wholesalers:

As a result of the tax increase, you are required to pay a floor stock tax on all affixed and un-affixed state and combined cigarette stamps on hand as of the beginning of business on July 1, 2015. There is no additional tax due on county-only stamps. Tax stamps purchased and paid for at the old rate prior to July 1, 2015, that are in transit must be counted in your beginning July 1, 2015, inventory. A 1.8 percent discount is allowed on the additional tax on all affixed and un-affixed stamps. Stamping wholesaler floor stock tax returns are due with payment on or before September 30, 2015. The return, CIG-56S, is available on the Department’s website at: www.tax.ohio.gov/Forms.aspx

Please contact us at the address or phone number below with any questions:

Ohio Department of Taxation
Excise and Energy Tax Division
P.O. Box 530
Columbus, OH 43216-0530
Telephone: (855) 466-3921, option 3
Fax: (206) 350-6722
Website: tax.ohio.gov