Information Release

XT 2005-04 - Excise and Motor Fuel Tax Division Information Release - Cigarette Tax Increase For All Ohio Stamping Cigarette Wholesalers - June 23, 2005

The 126th Ohio General Assembly recently passed Amended Substitute House Bill 66 which included a tax increase on cigarettes effective July 1, 2005.  The current tax rate is 2.75 cents per cigarette, and the new rate will be 6.25 cents per cigarette or $1.25 per package of 20.  The new tax on packages sold in Cuyahoga County will be $1.295 per package of 20.

As a result of the tax increase, you are required to pay a floor stock tax on all affixed and unaffixed state and combined cigarette tax stamps on hand as of the close of business on June 30, 2005.  There is no additional tax on county only stamps.  Enclosed is your Ohio floor stock tax return which must be filed and paid by September 30, 2005, and is based on your June 30 ending inventory.  Tax stamps in transit that were paid for at the old rate must be counted in your June 30 inventory even though you may not have possession on that date.  A 1.8 percent discount is allowed on all affixed and unaffixed stamps.  In addition, if the return is filed and paid by August 15, 2005, a 5 percent credit may be deducted from the tax due.

The enclosed  informational  release and  floor  stock tax  return  has  been mailed to all retailers.  We would appreciate it if you would notify your retail customers and provide them with a copy of the retailer release and retailer return if they did not receive them.  An account number will be assigned to the retailer when they contact the Ohio Department of Taxation

           If you have any questions or problems, please contact us at the address shown below:


Ohio Department of Taxation
Excise Tax Section
P.O. Box 530
Columbus, Ohio 43216-0530
Telephone:  (855) 466-3921
Fax:  (206) 350-6722