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Tobacco Products Wholesale Sales & Use Tax
Overview

Description
The Tobacco Products Wholesale Sales and Use Tax is imposed on the receipts from every sale of tobacco prod­ucts, other than cigarettes, by a distributor or a wholesaler to a retail dealer or consumer. Cigarettes are exempt from this tax.

Chapter 448, P.L. 2001, effective March 1, 2002, converted the Tobacco Products Wholesale Sales and Use Tax from one imposed on the price that a distributor receives from the sale of tobacco products to a vendor or consumer to one imposed upon the (lower) price that the distributor pays to buy the products from the manufacturer.

Rate
The Tobacco Products Wholesale Sales and Use Tax is imposed at the rate of 30% on the invoice price the distributor pays to buy the products from the manufacturer.

Distributors and wholesalers who also sell tobacco prod­ucts at retail or otherwise use the tobacco products must pay a compensating use tax of 30% measured by the sales price of a similar tobacco product to a distributor.

Effective August 1, 2006, the Tobacco Products Wholesale Sales and Use Tax on moist snuff is imposed upon the sale, use, or distribution of moist snuff within this State by a distributor or wholesaler to a retail dealer or consumer at the rate of $0.75 per ounce on the net weight as listed by the manufacturer and a proportionate rate on all fractional parts of an ounce of the net weight of moist snuff.

Distributors and wholesalers who also sell moist snuff at retail or otherwise use the moist snuff must pay a compensating use tax at the rate of $0.75 per ounce of moist snuff, with a proportionate tax rate for fractional parts of an ounce of the net weight of moist snuff.

Disposition of Revenues
Revenues are deposited in the State Treasury for general State use.


Last Updated: Monday, 09/27/10



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