Tobacco business in the US is carefully monitored and administered and it is mandatory to obtain necessary permits and licenses and follow all State government law’s requirements when selling, importing or manufacturing tobacco products.
For selling cigarettes and tobacco products in the New York State, it is mandatory to obtain retail dealer license for all retail sales locations.
Who is a Tobacco retailer dealer in the New York State?
A Tobacco retail dealer is a person who sells cigarettes or tobacco products in New York State or owner and operator of vending machines but does not include a wholesaler.
What items are included in the tobacco products?
Tobacco products include cigarettes, cigars, snuff, smokeless tobacco, pipe tobacco, chewing tobacco, roll your own tobacco, bidi, snuff, Shisha, or dissolvable tobacco products.
Who is eligible to apply for a retailer dealer license?
Any one person who sells tobacco products directly to consumers and every owner or operator of vending machines through which tobacco products are sold in the New York State must separately apply for a tobacco retailer dealer license.
If your retail business has multiple locations, each location must have its own separate license.
How can I apply for a retailer’s license?
You are required to submit a complete application on Form DTF-716 for a Tobacco Retail Dealer license along with all required documents and information to the Tax Department, New York State.
What are the particulars of a business license application Form DTF-716?
Following is the information that you will fill in the license application:
- Your complete legal business name as registered with the Secretary of State.
- Your DBA/ Trade name.
- Sales Tax Identification number.
- Complete mailing address.
- Date when you began or will begin the retail business in New York.
- Name and signature of applicant.
Can you apply for Tobacco License if you don’t have a sales tax ID Number?
No, this is a mandatory requirement in the State that if you want to apply for registration for your tobacco retail business, you must have a sales tax certificate of authority. If you don’t have a sales tax id, you can apply for registration on form DTF-17 (application to register for a sales tax certificate of authority) and attach this application with your tobacco license application.
Failure to apply and register for a sales tax certificate and starting a business without obtaining one would penalize you with an amount of $ 10,000.
What is the License Fee?
Tobacco Retail Dealer License fee is as follow:
$ 300 for each retail location.
$ 100 for each vending machine.
How long will it take to process my application?
Once your application is approved by the Tax Department you will be issued a Retail Dealer Certificate of Registration for Tobacco products on Form DTF-720 and Vending machine Certificate of Tobacco and Cigarette products on Form DTF-721.
Your tobacco license Form DT-720 is valid for both cigarettes and tobacco products sale.
Your retail tobacco license should prominently be displayed in each of your retail locations. Similarly, you are required to affix your vending machine license to each vending machine in a position that can be seen by the customers.
Licenses are renewable?
Your retail license is valid for one year and will be renewed on Form DTF-719 with a prescribed renewal fee of $ 300 for each retail location and $ 100 for each vending machine.
Are there any penalties for operating retail tobacco business without license?
Yes, any person doing retail tobacco business in the State without proper registration will be subject to a penalty of $ 5000 up to maximum of $ 25,000 for the first violation. An additional fine will be imposed for subsequent violation for an amount from $ 10,000 to maximum $ 35,000.
The same rule applies to vending machine retailers and they will be subject to penalty for an amount $ 750 up to maximum $ 2,000 for non-compliance with the State requirements.
What are the taxes on tobacco products in New York State?
New York State imposes excise tax on all cigarettes and tobacco products in the State for sale:
- The state excise tax rate is $4.35 per package of 20 cigarettes.
- The state excise tax rate on cigars and tobacco products is 75% of the wholesale price.
- Tax on little cigars is $4.35 per 20 and $2 per container of snuff with one ounce or less.
- Excise tax on per ounce of snuff is $2 and a proportionate rate on any fractional amount for containers with more than one ounce (for example, the tax on a 1.25 oz. container would be $2.50).
Who is responsible to collect and pay the taxes?
Sales Tax Agents were responsible for sales tax and cigarette excise tax payment at the time the cigarette tax stamps are purchased and passes that tax on to wholesalers and retailers.
Cigarettes and tobacco products distributor are responsible for tobacco tax at the time tobacco products are imported in the State and causing them to be imported or manufacturers them in the state.
What are the return filing requirements for me as a retail tobacco dealer?
As a cigarette and tobacco products retail dealer, you are required to file sales tax return on following forms:
Form ST 100 for quarterly return, i.e. March, June, Sep and Dec of a tax year.
Form ST-101 for annual sales return, i.e. in March annually.
Form ST-09 for monthly return.
Failure to file above returns on time may impose several civil penalties and fine on you. Please refer sales and use tax penalties on New York State, Tax website.
