The cost for a retail cigarette license is $125.00 per location per year. Cigarette licenses should be purchased or renewed every fourth Monday in May, and the fees will be prorated for any new licenses issued after that date. Wholesale cigarette license are no longer issued by the county auditor; these licenses will be issued by the Department of Taxation.
The license does not authorize the licensee to engage in the business of trafficking cigarettes at any place in this state other than that specified by the County Auditor. (One license is good for one location)
Cigarette licenses are to be displayed near the product being sold for easy inspection. If cigarettes are being sold in your place of business and you do not have a license or your vending machine does not have one displayed, please contact your local County Auditor’s office.
The recently enacted budget bill, House Bill 1, made changes to the fees, the distribution of revenue, and the structure of the cigarette licensing provisions. All these changes are effective on January 1, 2010.
The new fee on all retail cigarette licenses will be $125 per location per year. There will no longer be a reduced fee for more than five licenses issued in the same county. Licenses will still be renewed every fourth Monday in May, and the fees will be prorated for any new licenses issued after that date. Revenues collected on these retail licenses will be distributed as follows: 30 percent to the municipal corporation or township, 10 percent to the general fund of the county, and 60 percent to the cigarette tax enforcement fund. Although the percentages to the municipal corporation or township and county general fund will decrease, the total funds will be more than in the past because of the increased fees associated with these licenses.
In addition to the report listing the retail licenses issued that has always been required by the end of each July, county auditors will be required to file monthly reports. These reports should reflect any new retail licenses issued after January 1, 2010. The portion of the fees that are to be paid into the cigarette tax enforcement fund should be remitted along with the monthly report. Also, beginning January 1, the fees that are to be paid into the cigarette tax enforcement fund should be remitted to the Ohio Department of Taxation rather than the Treasurer of State. The Department is currently designing the report and will send it to the counties by the end of the year.
The "Application for Retail Cigarette Dealer's License" (CIG 40) has been revised to reflect H.B. 1 changes. Most importantly, the retail and wholesale cigarette licenses are no longer assignable. A copy of the CIG 40, revised October 2009, is attached to this memo.
Wholesale cigarette licenses will no longer be issued by the county auditors; these licenses will be issued by the Department of Taxation. Based on historical figures, any revenue loss as a result of this change will be offset by the increased fees associated with the issuance of retail licenses. The new fee on a cigarette wholesale license will be $1000.
Since the new fee structure is effective on January 1, 2010, any new applicants for a retail cigarette license will pay a prorated fee for the period January 1, 2010, through the fourth Monday in May 2010. Starting with the May 2010 renewal, everyone will be required to renew their license under the new fee structure. A proration chart is enclosed for the period January 1, 2010, to May 23, 2010. Please begin using this chart on January 1 and discard any old proration charts you may have in your possession.
Should you have any questions regarding these changes please contact us at the following:
Ohio Department of Taxation
Excise, Motor Fuel and Public Utilities Tax Division
Excise Tax Section
P.O. Box 530
Columbus, Ohio 43216-0530