Information Release

XT 2016-01 – Cigarette Tax: Excise & Energy Tax Division Seeks Comments on Current Rules - Issued January, 2016

Executive Order 2011-01K and Senate Bill 2 of the 129th General Assembly, require state agencies to draft rules in collaboration with stakeholders, assess and justify any adverse impact on the business community, and provide an opportunity for the affected parties to provide input on the rules.

As part of the Department’s five-year rule review process, the Excise & Energy Tax Division proposes the following:

Rule Number

Proposed Change

5703-15-06

Changes

5703-15-07

Rescind

5703-15-08

Changes

5703-15-09

No Change

Draft 5703-15-06 Denial of discount in stamp purchases.

In addition to the power to revoke any cigarette dealer's license, the Department of Taxation may, by final determination journal entry certified to the Treasurer of State, after ten days' notice to any licensed wholesale cigarette dealer, deny such dealer the right to any discount in the further purchase of cigarette tax stamps or impressions for such period of time as the Department of Taxation may determine in each case, under the following circumstances:

(A) Upon finding that any licensed wholesale cigarette dealer has violated any provision of the Cigarette Tax law of Ohio or any rule of the Department of Taxation with respect thereto.

(B) Upon finding by the Department of Taxation that any wholesale cigarette dealer is delinquent in payment of the Cigarette Excise Tax and failure to pay such delinquency upon the expiration of ten days after final date fixed by the Department of Taxation for such payment or any extension of such payment date granted by the Department.

(C) Upon failure to submit the wholesale cigarette dealer's monthly report within ten days from notice of such failure.

(former TX-21-06); Eff 5-13-65; 7-26-39
Rule promulgated under: RC 5703.14
Rule amplifies: RC 5743.04

Rescind 5703-15-07 Limiting sale of stamps to licensed dealers.

The treasurer of state and the treasurer's agents may sell cigarette tax stamps only to licensed wholesale or retail cigarette dealers except pursuant to specific authority of the tax commissioner.

Eff 11-17-55; 9-17-04
Rule promulgated under: RC 5703.14
Rule authorized by: RC 5703.05
Rule amplifies: None
R.C. 119.032 review dates:

Draft 5703-15-08 Sales of packages of cigarettes for which tax indicia are not available.

With respect to packages containing any number of cigarettes for which tax indicia are not available, the taxes levied by sections 5743.02, 5743.023 and 5743.024 of the Revised Code shall be paid to the treasurer of state Department of Taxation on or before the tenth day of each month on all such packages of cigarettes sold in this state during the preceding calendar month.

In lieu of the manner otherwise provided by law to evidence payment of said taxes, each person liable for payment of the taxes levied by sections 5743.02 and 5743.023 of the Revised Code shall, prior to the sale of any such packages of cigarettes in this state, print or otherwise stamp on the bottom of each package the words "ohio tax paid"; each person liable for payment of the taxes levied by section 5743.024 of the Revised Code shall, prior to the sale of any packages of cigarettes into any county in which the tax is in effect, print or otherwise stamp on the bottom of each package the words "OHIO & COUNTY TAX PAID."

The provisions herein shall not be construed to alter in any respect those provisions of law pertaining to sales of said packages of cigarettes in this state other than the manner of payment of said taxes and the manner of evidencing such payment.

Eff 1-20-91
Rule promulgated under: RC 5703.14
Rule authorized by: RC 5703.05
Rule amplifies: RC 5743.04

5703-15-09 Tax rate on long cigarettes capable of being cut into parts.

In case cigarettes or the packages containing them are perforated so that each cigarette may be conveniently cut into two or more parts so as to make two or more cigarettes, the number of cigarettes in such packages for the purpose of taxation shall be the number as though they were cut.

(former TX-21-10); Eff 7-26-39
Rule promulgated under: RC 5703.14

All comments regarding these rules should be sent to Keven Kuhns, Division Counsel, Excise & Energy Tax Division, at keven.kuhns@tax.state.oh.us by February 12, 2016.

 

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