IPCPR Legislative | Shipping in Maryland

Shipping in Maryland

maryland

Shipping in Maryland

Maryland has specific restrictions concerning the shipping of tobacco products to consumers. The prohibitions do not apply to the order, purchase, sale, or shipment of premium cigars or pipe tobacco by a licensed other tobacco products retailer or licensed tobacconist. Except as provided, a person who is engaged in the business of selling or distributing other tobacco products may not:

  • sell or ship other tobacco products, ordered or purchased by mail or through a computer network, telephonic network, or other electronic network by a consumer or other unlicensed recipient, directly to a consumer or other unlicensed recipient in this State; or
  • cause other tobacco products, ordered or purchased by mail or through a computer network, telephonic network, or other electronic network by a consumer or other unlicensed recipient, to be shipped directly to a consumer or other unlicensed recipient in this State.

 

A licensed other tobacco products retailer or licensed tobacconist may deliver not more than two packages of other tobacco products directly to a consumer if the delivery is made by the licensed other tobacco products retailer or licensed tobacconist or an employee of the licensed other tobacco products retailer or licensed tobacconist.

 

Md. Code Ann. Bus. Reg. § 16.5-217: Sales or distribution of other tobacco products

 

A person may not ship, import, or sell into or within this State any other tobacco products unless that person is the owner of the brand, is the United States importer for the brand, or is a designated agent, and holds any license required by Maryland law.

 

Md. Code. Ann. Bus. Reg. § 16.5-216: Shipping, importing, or selling other tobacco products

 

A person who transports other tobacco products by vehicle on a public road shall have in the vehicle a delivery ticket or an invoice that states the name and address of the seller or consignor, the quantity and brands of the other tobacco products that are being transported, and the name and address of a buyer or consignee who is:

  • a person in the State authorized by Title 12 of the Tax – General Article to hold other tobacco products on which the tobacco tax has not been paid; or
  • a person in another jurisdiction authorized to hold other tobacco products on which the tax imposed by that jurisdiction has not been paid; and

 

Md. Code Ann. Bus. Reg. § 16.5-215: Transport of other tobacco products

 

Any person acting as an OTP manufacturer, retailer, storage warehouse, wholesaler, or tobacconist in Maryland must have an appropriate license. A license to act as an OTP retailer or tobacconist is required for each place of business. Licensing requirements do not apply to a seller located outside of Maryland when selling, holding for sale, shipping, or delivering premium cigars or pipe tobacco to consumers in Maryland.

 

Md. Code. Ann. Bus. Reg. § 16.5-202

 

Additional information about licensing in Maryland is available at the Operating Your Business link above.

Maryland does not have any specific age verification requirements for the shipping of tobacco products. Sellers must comply with general age verification requirements.

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

 

There are no additional tax requirements for the shipment of tobacco products. Sellers must pay all applicable taxes.

 

Additional information about taxation in the state, including information about tax rates, filings, and forms, is available at the Taxation and Definitions link above.

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