Information Release

XT 2003-09 - Excise And Motor Fuel Tax Division Information Release – Cigarette Stamp Purchase On Credit Without A Bond - July 16, 2003

Amended Substitute House Bill 95 includes language that allows licensed cigarette dealers to purchase tax stamps on credit without securing a bond, provided the dealer has been in good standing with the Ohio Department of Taxation for the last five years. This change is effective September 26, 2003. The maximum value of stamps that may be purchased is 110 percent of the dealer's average monthly purchases over the preceding calendar year. Ohio Revised Code Section 5743.05 states that the tax commissioner shall require payment for the stamps within 30 days after purchase. If you choose to purchase stamps on credit without a bond, there is also a requirement that the payment must be made by electronic funds transfer.

An application to purchase cigarette tax stamps on credit without a bond will be sent to all dealers that qualify as of September 26, 2003. If you do not qualify until after September 26, 2003, you should file your application 30 days prior to the date that you qualify. The application will be available on our Web site. If you do not want to use this method or do not qualify, you may either purchase stamps on credit with a surety bond or pay for the stamps at the time of purchase. Cigarette stamps may not be purchased on credit from May 1 through June 30. Please contact the Excise Tax Unit at (855) 466-3921 if you have any questions.