IPCPR Legislative | Maryland

Maryland

maryland

Maryland State Contact Information

 

Comptroller of Maryland
Revenue Administration Division
P.O. Box 2999
Annapolis, Maryland 21411
(410) 260-7980
att@comp.state.md.us

Taxation in Maryland

 

Maryland imposes a tax on tobacco products sold or purchased for resale in Maryland. The tobacco tax must be paid by the wholesaler who sells the other tobacco products (“OTP”) to a retailer in Maryland or by licensed OTP retailers or tobacconists who receive products on which the tobacco tax has not been paid.

 

Md. Code. Ann. Tax Gen. § 12-102
Md. Code. Ann. Tax Gen. § 12-302

 

The tobacco tax does not apply to

  • OTP that an OTP wholesaler licensed under Title 16.5 of the Business Regulation Article is holding for sale outside the State or to a United States armed forces exchange or commissary; or
  • OTP that
    • a consumer brings into Maryland
      • if the quantity brought from another state does not exceed other tobacco products having a retail value of $100; or
      • if the quantity brought from a United States armed forces installation or reservation does not exceed other tobacco products having a retail value of $100
    • a person is transporting by vehicle in the State if the person has, in the vehicle, the records required by § 16-219 or § 16.5-215 of the Business Regulation Article for the transportation of other tobacco products; or
    • are held in storage in a licensed storage warehouse on behalf of a licensed other tobacco products manufacturer.

 

Md. Code. Ann. Tax Gen. § 12-104

 

A county, municipal corporation, special taxing district, or other political subdivision of Maryland may not impose a tax on other tobacco products.

 

Md. Code. Ann. Tax Gen. § 12-102

The tobacco tax rate for OTP is 30% of the wholesale price of the tobacco products, except that the tax rate for cigars is 70% of the wholesale price, and the tax rate for premium cigars is 15% of the wholesale price.

 

Md. Code. Ann. Tax Gen. § 12-105

Manufacturers (Form 611) and storage warehouse operators (Forms 612, 612-1, and 612-2) must file monthly information returns with the Comptroller of Maryland no later than the 15th day of the following month, even if there is no activity to report for the previous month. Wholesalers must file a monthly report of Maryland sales of roll-your-own tobacco on which the tobacco tax has been paid by the manufacturer (Form 608-3) and an OTP tax return (Form 609) within 21 days after the end of each calendar month. OTP retailers and tobacconists must file quarterly tax returns (Form 610) by April 21st, July 21st, October 21st, and January 21st. Consumers in Maryland who purchased premium cigars must file a tax return (Form 620) by the 21st day of the month following the purchase.

 

Md. Code. Ann. Tax Gen. § 12-201: Returns of manufacturers and storage warehouse operators
Md. Code. Ann. Tax Gen. § 12-202: Returns of wholesalers

Maryland Tobacco Tax Forms Database
http://taxes.marylandtaxes.com/Business_Taxes/Business_Tax_Types/Tobacco_Tax/Filing_Information/Tobacco_Tax_Forms/

 

Form 611: OTP Manufacturer Report
http://forms.marylandtaxes.com/tobacco_forms/611.pdf

 

Form 612: OTP Storage Warehouse Report
http://forms.marylandtaxes.com/tobacco_forms/612.pdf

Form 612-1: OTP Storage Warehouse Schedule – Acquisitions
http://forms.marylandtaxes.com/tobacco_forms/612-1.pdf

Form 612-2: OTP Storage Warehouse Schedule – Dispositions
http://forms.marylandtaxes.com/tobacco_forms/612-2.pdf

 

Form 608-3: Wholesaler’s monthly report of Maryland sales of roll-your-own tobacco
http://forms.marylandtaxes.com/tobacco_forms/608-3.pdf

 

Form 609: Maryland Wholesaler Tax Return

http://forms.marylandtaxes.com/tobacco_forms/609.pdf

 

Form 610: Maryland OTP Tax Return (Retailers and Tobacconists)
http://forms.marylandtaxes.com/tobacco_forms/610.pdf

 

Form 620: Consumer Premium Cigar Tax Return
http://forms.marylandtaxes.com/tobacco_forms/620.pdf

Definitions in Maryland

 

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

 

Md. Code. Ann. Health Gen. § 24-501

 

“Other tobacco product” means (1) any cigar or roll for smoking, other than a cigarette, made in whole or in part of tobacco; or (2) any other tobacco or product made primarily from tobacco, other than a cigarette, that is intended for consumption by smoking or chewing or as snuff.

 

Md. Code. Ann. Tax Gen. § 12-101

 

“Premium cigars” mean cigars that (1) have hand-rolled wrappers made from whole tobacco leaves where the filler, binder, and wrapper are made of all tobacco, and may include adhesives or other materials used to maintain size, texture, or flavor; or (2) are designated as premium cigars by the Comptroller by regulation.

 

Md. Code. Ann. Bus. Reg. § 16.5-101

 

“Pipe tobacco” means any tobacco that, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco to smoke in a pipe.

 

Md. Code. Ann. Bus. Reg. § 16.5-101

 

“Tobacconist” means a person authorized under § 16.5-205(e) of the Business Regulation Article to purchase other tobacco products on which the tobacco tax has not been paid.

 

Md. Code. Ann. Tax Gen. § 12-101

 

“Other tobacco products wholesaler” means a person who: (1) holds other tobacco products for sale to another person for resale; or (2) sells other tobacco products to another person for resale.

 

Md. Code. Ann. Bus. Reg. § 16.5-101

 

“Other tobacco products retailer” means a person authorized under § 16.5-205(b) of the Business Regulation Article to purchase other tobacco products on which the tobacco tax has not been paid.

 

Md. Code. Ann. Tax Gen. § 12-101

 

“Manufacturer” means means a person who acts as a manufacturer as defined in § 16-201 of the Business Regulation Article or as an OTP manufacturer as defined in § 16.5-101 of the Business Regulation Article.

 

Md. Code. Ann. Tax Gen. § 12-101

 

“Wholesale price” means the price for which a wholesaler buys other tobacco products, exclusive of any discount, trade allowance, rebate, or other reduction.

 

Md. Code. Ann. Tax Gen. § 12-101

CONTACT IPCPR LEGISLATIVE
Questions? Comments? Interested in Getting Involved? Contact the IPCPR Legislative Team!
CONTACT US
Thank You. We will contact you as soon as possible.