Information Release

XT 2007-01 - Excise and Motor Fuel Tax Division Information Release – Cuyahoga County Cigarette Tax Increase - January 11, 2007

The purpose of this release is to notify you that on November 7, 2006, voters in Cuyahoga County passed a resolution levying an additional excise tax on cigarettes for the purpose of funding the arts and cultural facilities and programs in that county.  This additional levy becomes effective on February 1, 2007.

The additional excise tax is 30 cents for a pack of 20 cigarettes and is in addition to the state excise tax of $1.25 per pack of 20 cigarettes and the $.045 cents per pack of 20 cigarettes that is currently in effect in Cuyahoga County.  The total tax on packages sold in Cuyahoga County will be $1.595 per pack of 20 cigarettes and $1.99375 per pack of 25 cigarettes.

As part of this additional levy, retailers are required to pay a floor stock tax (which is the difference between the old rates and the new rates) on all cigarettes held in inventory at the close of business on January 31, 2007.  That tax is due on or before March 5, 2007.  A preprinted floor stock tax return is enclosed.  Please note that the Department is using your county assigned retail license number as your Ohio Department of Taxation account number.

Wholesalers are not required to file a floor stock tax return.  However, the Department has ordered new tax stamps that will be sold at the new Cuyahoga County rate.  Absent problems with obtaining these new stamps, they will be available for purchase on January 25, 2007.  The previous Cuyahoga County tax stamps will not be sold after that date unless the wholesaler can show that such stamps are necessary in order to service Cuyahoga County retailers before January 31, 2007.  Wholesalers with current Cuyahoga County tax stamps purchased at the old rate will be permitted to affix those stamps and distribute to retailers through February 28, 2007.  Wholesalers will not be authorized to affix or distribute Cuyahoga County tax stamps purchased at the old rate after February 28, 2007.  Wholesalers with affixed inventory as of February 28, 2007, will need to re-stamp this product with the new tax stamp and complete a refund claim, supported by an affidavit, for any unsold affixed stamps.  Any unaffixed stamps should be returned for refund.  All refund claims will be processed without delay.  Retailers should not accept cigarettes after February 28, 2007, that do not bear the new tax stamp.

Wholesalers distributing into Cuyahoga County must track all sales into Cuyahoga County of cigarettes stamped with the old tax stamp and cigarettes stamped with the new tax stamp.  These wholesalers will be required to file a schedule, with their regular semi-annual return, separating sales made with the old stamp affixed and sales made with the new stamp affixed. 

Please contact the Excise Tax Section of this Department with any questions.

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