Frequently Asked Questions About Tobacco Tax
Tobacco tax is a tax imposed upon the consumer of tobacco products at the time of purchase. The Michigan Tobacco Products Tax Act PA 327 of 1993 as amended sets specific requirements for licensing, stamping, collecting and remitting the tobacco taxes. The Act provides civil and criminal penalties for violations of the Tobacco Tax Act.
Who is required to file a tobacco tax return?The Michigan Tobacco Products Tax Return must be filed monthly by licensed wholesalers, manufacturers, secondary wholesalers and unclassified acquirers of both cigarettes and other tobacco products.
What is the Tobacco Tax Rate?
Effective July 1, 2004 Cigarette tax rate - $0.10 per individual stick or $2.00 per pack of 20. Other Tobacco Products - Cigars, non-cigarette smoking tobacco and smokeless tobacco tax rate is 32% of the wholesale price which is the price charged by the manufacturer including the federal taxes before any discounts.
Effective November 1, 2012 Premium Cigars - Cigars with a wholesale cost of $1.5625 or more per individual cigar are taxed at a rate of 50 cents per cigar. Cigars with a wholesale cost less than $1.5625 each are taxed at 32% of the wholesale price.
Are Blunts subject to tobacco taxYes, they fall under other tobacco products (OTP) category and are subject to tobacco tax.
May I sell cigarettes and/or tobacco products from behind the counter of a bar, restaurant or hotel?Yes, as long as the tobacco tax has been paid and the tobacco products are out of reach of minors.
How do I get an application?
To apply for a Tobacco Products Tax License, please go to the Tobacco website at www.michigan.gov/tobaccotaxes and click on the blue 'Applying for a License' icon.
What are the dates of the license year?
The license year runs from July 1st through June 30th and must be renewed every year. The application must be postmarked no later than June 30th.
How do I get a renewal application?
Do I need a State of Michigan tobacco tax license to sell cigarettes in my bar, bowling alley, or store (i.e., convenience store, grocery store or party store?
You do not need a license, as long as you purchase all the cigarettes and other tobacco products from a wholesaler licensed with the State of Michigan who affixes the tobacco tax stamp to the cigarettes and remits the appropriate tax to the State; however, you do need to obtain a Michigan Sales Tax License.
How do I find out who is a wholesaler licensed with the State of Michigan?A list of wholesalers, unclassified acquirers, secondary wholesalers, and vending machine operators is supplied on the MiMATS e-Services portal.
I have a vending machine that dispenses tobacco products. Do I need to have a license to sell tobacco products?
Yes, the fee is $25.00 for the first vending machine and $6.25 for each additional vending machine. A current marker must be visibly placed on each vending machine.
Is there a limit to the number of vending machines that I may have under one license?
No. However, you must provide to the Michigan Department of Treasury a list of the business names and addresses where each vending machine is located. Include your business name and account number (FE, ME or TR) on the list. Vending machines must be placed in a location so that they can be monitored to prevent sales to minors.
Return and Payment Information
When are the tax returns due?
Monthly Tobacco Tax returns are due on the 20th of each month following the reporting period. If the 20th of the month falls on a Saturday, Sunday or legal holiday, the next business day shall be considered the due date.
Monthly Tobacco Tax payments are due on the 20th of each month following the reporting period. If the 20th of the month falls on a Saturday, Sunday or legal holiday, the next business day shall be considered the due date. If payment is not postmarked or received by the due date, penalty and interest charges may be assessed based on provisions of the Michigan Revenue Act MCL 205.24.
Is the reporting of total ounces mandatory on the tobacco taxes return?
Yes, only for Roll-your-own Non-Participating Manufacturer products.
Is the reporting brand information required for Participating Manufacturer Tobacco Products?
No, Brand information is only required for Non-Participating Manufacturer products.
How do I contact the Tobacco Tax Unit?
You may contact the Tobacco Tax Unit by:
- Phone: 517-636-4630
- Fax: 517-636-4631
Michigan Department of Treasury,
P.O. Box 30791,
Lansing, MI 48909-7974
- E-mail: firstname.lastname@example.org