IPCPR Legislative | Delaware

Delaware

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Delaware State Contact Information

Delaware Division of Revenue
Ray Benton
(302) 577-8268
raymond.benton@state.de.us

Delaware Public Integrity Commission
(302) 739-2399
(302) 739-2398 fax

Taxation in Delaware

Delaware imposes an excise tax on the sale or use of all tobacco products within the state. The tax must be paid by the first person who has possession of the tobacco products in Delaware. The tax is typically paid by the wholesaler who brings into Delaware, or causes to be brought into Delaware, tobacco products for the purpose of resale, or by the manufacturer of tobacco products in Delaware.

 

Del. Code tit. 30, § 5305: Levy of tax, limitation; exemption
Del. Code tit. 30, § 5306: Liability for payment of tax

 

Division of Revenue staff reported that Delaware localities do not levy additional taxes on tobacco products.

The tax on tobacco products other than cigarettes is 15% of the wholesale price, except that the tax on moist snuff is $0.54 per ounce and a proportionate tax on any fractional parts of an ounce.

 

Del. Code tit. 30, § 5305(b-c): Levy of tax, limitation; exemption

Every wholesale dealer or retailer who acquires untaxed tobacco products must file a Wholesale Dealer’s Monthly Report of Other Tobacco Products (Form TP-1) on or before the 20th day of each month, along with payment for taxes due.

 

Del. Code tit. 30, § 5319: Alternate method of collection; other tobacco products

Delaware Division of Revenue: Cigarette and Tobacco Tax Forms
http://revenue.delaware.gov/services/Business_Tax/Forms_New.shtml

 

Form TP-1: Wholesale Dealer’s Monthly Report of Other Tobacco Products
http://revenue.delaware.gov/services/current_bt/tp1.pdf

 

Form TP-1i: Instructions for Wholesale Dealer’s Monthly Report of Other Tobacco Products
http://revenue.delaware.gov/services/current_bt/tp1i.pdf

Definitions in Delaware

 

“Smoking” means the burning of a lighted cigarette, cigar, pipe or any other matter or substance that contains tobacco.

 

Del. Code tit. 16, § 2902(11)

 

“Tobacco products” means all products, including but not limited to, cigarettes, cigars and pipe tobacco, made primarily from tobacco for individual consumption.

 

Del. Code tit. 30, § 5301(13)

 

“Cigar” means any roll for smoking that is not a cigarette and that is made wholly or in part of tobacco or any substitute therefor when the cover of the roll is made chiefly of tobacco.

 

Del. Code tit. 30, § 5305(f)(1)

 

“Smokeless tobacco products” means all products, other than moist snuff, made primarily of tobacco for individual consumption, not intended to be smoked.

 

Del. Code tit. 30, § 5301(12)

 

“Moist snuff” means any finely cut, ground or powdered tobacco that is not intended to be smoked but shall not include any finely cut, ground or powdered tobacco that is intended to be placed in the nasal cavity.

 

Del. Code tit. 30, § 5301(6)

 

“Distributor” means:

  • Any person engaged in the business of selling tobacco products in Delaware who brings or causes to be brought into the state any tobacco products for sale
  • Any person who makes, manufactures or fabricates tobacco products in Delaware for sale in the state
  • Any person engaged in the business of selling tobacco products without Delaware who ships or transports tobacco products to retail dealers in the state to be sold by those retail dealers

 

Del. Code tit. 30, § 5301(5)

 

“Wholesale dealer” means any person who regularly sells tobacco products within Delaware to others who buy for the purpose of resale.

 

Del. Code tit. 30, § 5301(19)

 

“Retail dealer” means any person who purchases or receives stamped tobacco products from any source whatsoever for the purpose of sale to the ultimate consumer.

 

Del. Code tit. 30, § 5301(9)

 

“Wholesale price” means the price for which a manufacturer sells a tobacco product to a distributor exclusive of any discount, rebate, or other reduction.

 

Del. Code tit. 30, § 5305(f)(2)

 

“Sale” means in addition to its usual meaning, any sale, transfer, exchange, theft, barter, gift or offer for sale and distribution, in any manner or by any means whatsoever.

 

Del. Code tit. 30, § 5301(10)

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