Tax Information for Tobacco Taxpayers

The Processing Control Unit of the Revenue Administration Division is responsible for processing tobacco tax returns and related payments. In coordination with the Assistant Attorney General, the Unit reviews and compiles reported activity by licensed tobacco wholesalers as required by the Master Settlement Agreement (MSA), as well as prepares deposits for incoming revenue related to tobacco tax.

The Regulatory and Licensing Section (RLS) of the Field Enforcement Bureau is responsible for the issuance of licenses and permits and promotes fair trade practices in accordance with the law. RLS also provides online verification of licenses and permits.

Tobacco Tax Forms

Cigarette Price Calculators

Wholesaler Minimum Price Calculator
Wholesaler Alternate Price Calculator

  1. Multiply the wholesaler to retailer purchase price from your invoice by the 8% retailer cost of doing business minimum markup.
  2. A fractional part of a cent equal to one-tenth of a cent or more in the result of step 1 must be rounded off to the next highest cent.
  3. Add the result from step 1 to the wholesaler to retailer purchase price.
  4. The result of step 3 is the minimum price that you may sell to consumers.

Example:
$ 34.15  Purchase price per carton
X    .08  Cost of Doing Business markup (8%)*
$   2.73

$ 34.15   Purchase price per carton
+  2.73    Result from step 1
$ 36.88   Minimum retailer to consumer selling price per carton

*Per the Annotated Code of Maryland, Trade Regulation, Sec's. 11-501 (d)(1) and 11-503 (b)(1).

Title 11 of the Commercial Law Article of the Annotated Code of Maryland provides that, in the absence of a satisfactory proof of a lesser cost, the cost of doing business is presumed to be 5% of the basic cost of cigarettes to that wholesaler.

COMAR Regulation .03.02.03.07 (see COMAR Online) provides a mechanism for a cigarette wholesaler to prove a cost of doing business that is less than 5%. The regulation further provides that the lowest approved percentage becomes the statewide benchmark for all licensed wholesalers until when and if a different percentage is approved based on the regulation.

Below is the current approved cost of doing business percentage:

Effective Date:  May 1, 2022
Percentage:  0.42%

Cigarette wholesalers are strongly encouraged to use the automatic calculator below to calculate their minimum selling price. The cost of doing business percent and tax rate are automatically included in this calculator. Wholesalers may incorporate other legitimate discounts in their calculation. It is highly recommended that wholesalers using this calculator print out a copy of their completed calculation which could later be used as evidence to prove a selling cost consistent with the statute and regulation.

  1. Multiply the wholesaler to subwholesaler purchase price from your invoice by the current approved cost of doing business percentage.
  2. A fractional part of a cent equal to one-tenth of a cent or more in the result of step 1 must be rounded off to the next highest cent.
  3. Add the result from step 1 to the wholesaler to subwholesaler purchase price.
  4. The result of step 3 is the minimum price that you may sell to your licensed retailers.

Example:
$ 34.00   Purchase price per carton
x 0.0042   Cost of Doing Business percentage
$ 0.1428   (14%)   

$34.00    Purchase price per carton
+   .14     Result from step 1 (14%)
$34.14    Minimum subwholesaler to retailer selling price per carton

For a full listing of monthly and annual tobacco reports, see Alcohol and Tobacco Tax Reports.

Application Description
Alcohol and Tobacco Tax Direct Debit Payments Application Make tobacco tax payments electronically
Credit Control Reporting System Report unpaid credit sales owed to wholesalers
Calculators
Cigarette Wholesaler to Retailer Minimum Price Calculator Cigarette Wholesaler to Retailer Alternate Price Calculator

Tobacco tax licensees due a refund:

  • may file a claim with Form ATT-603 within six months of the date that stamps were misapplied, cancelled, etc.
  • must furnish information as required to verify the claim.
  • in the case of tax stamps or taxes paid on products that were lost or destroyed by disaster, may file a claim within six months of the date the products were lost or destroyed, but only if the claim exceeds $250.00 and is not due to theft.

If a tax payment is due with a tobacco tax return, a check or money order may accompany the return, or payment can be submitted electronically using the Web site below. If submitting payment electronically, please pay on or before the due date.

Returns and applications for licenses and permits, along with payment, can be mailed to:

Comptroller of Maryland
Revenue Administration Division
P.O. Box 2999
Annapolis, MD 21404-2999