Every distributor acquiring or possessing any untaxed tobacco products for the purpose of making the initial sale or distribution in Arizona must obtain a Tobacco Distributor License from the Department of Revenue by filing a License Application for Distributors of Tobacco Products (Form 10428) and a fee of $25 for each place of business listed in the application. Tobacco Distributor Licenses are valid for one year from the date of issue and must be renewed annually by filing the same forms.
A retailer may sell any tobacco product that is not otherwise prohibited by federal or state law from sale for resale, but a retail may not acquire or possess untaxed tobacco products unless the retailer holds a valid Tobacco Distributor License. A retailer also may not use a vehicle as a place of business for selling tobacco products.
Each Tobacco Distributor Licensee must file, on or before the 20th day of each month, a Distributor’s Monthly Return of Cigars and Tobacco Products Received (Form 819), all applicable schedules, the Resident Distributor Certification, and payment for taxes due. A return must be filed for each month regardless of whether any sales have been made. Beginning on July 1, 2015, distributors of tobacco products must electronically file returns at https://www.aztaxes.gov/Home.