IPCPR Legislative | Operating Your Business in Michigan

Operating Your Business in Michigan

michigan

Operating Your Business in Michigan

Every manufacturer, wholesaler, secondary wholesaler, vending machine operator, unclassified acquirer, transportation company, and transporter of tobacco products in Michigan must obtain a Tobacco Tax License from the Michigan Department of Treasury by filing the Tobacco License Application (Form 336), the Tobacco Products Tax Electronic Application (Form 4154), the Trading Partner Agreement (Form 3999), and the applicable application fee:

 

  • Manufacturers, wholesalers, and unclassified acquirers:
    • $100
  • Transporters
    • $50
  • Secondary wholesalers and vending machine operators:
    • $25
  • Retail importers of tobacco products other than cigarettes:
    • $10
  • Transportation companies
    • $5

 

Wholesalers and unclassified acquirers must also file a Tobacco Products Electronic Funds Transfer Debit Application (Form 4240) and an Application for an Other Tobacco Products Tax Stamp (Non-Cigarette) (Form 323). Businesses located in Michigan that purchase their tobacco from local wholesalers and sell only to the end consumer do not need a Tobacco Products Tax License.

 

Mich. Comp. Laws § 205.423(2): License required

 

Tobacco Tax Licenses expire every year on June 30th and must be renewed by filing Form 4154, Form 3999, and the applicable renewal fee.

 

Mich. Comp. Laws § 205.424: Expiration, return, reissue, and renewal of license

 

Licensed wholesalers of tobacco products must file a monthly Michigan Wholesalers Other Tobacco Products Tax Return (Form 4244), the accompanying schedules, and payment for any taxes due on or before the 20th of each month, even if no tax is due.

 

Licensed unclassified acquirers of tobacco products must file a monthly Michigan Unclassified Acquirers Other Tobacco Products Tax Return (Form 4245), the accompanying schedules, and payment for any taxes due on or before the 20th of each month, even if no tax is due.

 

Mich. Comp. Laws § 205.427(2): Filing return; payment of tax.

 

A cigar bar, defined as an establishment or area within an establishment that is open to the public and is designated for the smoking of cigars, purchased on the premises or elsewhere, may allow smoking and drinking in its establishment if:

 

  • It qualifies for the smoking exemption, and
    • To qualify for the smoking exemption, the person who owns or operates a cigar bar must have filed an Application for Cigar Bar Exemption from the Smoke Free Law (available at http://www.michigan.gov/documents/mdch/Cigar_Bar_Guidance_and_Affidavit_319572_7.pdf) with the Michigan Department of Community Health by May 31, 2010 and on January 31st of each year after, certifying that the cigar bar:
      • Was in existence on May 1, 2010
      • Generated 10% or more of its total gross annual income from the on-site sale of cigars and the rental of on-site humidors
      • Is located on premises that are physically separated from any areas of the same or adjacent establishment in which smoking is prohibited and where smoke does not infiltrate into those nonsmoking areas
      • Has installed on its premises an on-site humidor
      • Prohibits entry to persons under 18 years of age during the time the cigar bar is open for business
      • Allows only the smoking of cigars on the premises that retail for over $1.00 per cigar, and
      • Prohibits the smoking of all other tobacco products
    • It holds a valid liquor license from the Liquor Control Commission of the Michigan Department of Licensing and Regulatory Affairs (LARA).

 

Mich. Comp. Laws § 333.12606a: Cigar bar or tobacco specialty retail store in existence on effective date of section; exemption from smoking prohibition; affidavit; request for additional information; failure to file affidavit.
Mich. Comp. Laws § 333.12601: Definitions

 

A city, township, village, county, other local unit of government, or political subdivision of Michigan may not impose any new requirement or prohibition pertaining to the sale or licensure of tobacco products for distribution purposes.

 

Mich. Comp. Laws § 205.434: Requirements or prohibitions imposed by local units of government.

Michigan Department of Treasury: Tobacco Tax Forms & Schedules
http://www.michigan.gov/taxes/0,4676,7-238-44079-155886–,00.html

 

Form 336: Tobacco Products License Application
http://www.michigan.gov/documents/taxes/336_2009_274257_7.pdf

 

Form 4154: Tobacco Products Electronic Filing Application
http://www.michigan.gov/documents/4154_fillable_105694_7.pdf

 

Form 3999: Trading Partner Agreement          http://www.michigan.gov/documents/TradingPartnerAgreement_3999_57549_7.pdf

 

Form 4240: Tobacco Products Electronic Funds Transfer Debit Application
http://www.michigan.gov/documents/4240_fillable_105699_7.pdf

 

Form 323: Application for an Other Tobacco Products Tax Stamp
http://www.michigan.gov/documents/323f_2919_7.pdf

 

Form 702: Tobacco Products License Surety Bond
http://www.michigan.gov/documents/702_2940_7.pdf

 

Form 4244: Michigan Wholesalers Other Tobacco Product Tax Return
http://www.michigan.gov/documents/treasury/4244_175523_7.pdf

 

Form T-115: Schedule of Other Tobacco Products Sold to Michigan Tribes
http://www.michigan.gov/documents/4255_115220_7.pdf

 

Form 4245: Michigan Unclassified Acquirers Other Tobacco Product Tax Return
http://www.michigan.gov/documents/treasury/4245_175522_7.pdf

 

Form T-101: Schedule of Other Tobacco Products Purchases

http://www.michigan.gov/documents/4259_115224_7.pdf

 

Form T-102: Schedule of Other Tobacco Products Credits
http://www.michigan.gov/documents/4258_115223_7.pdf

 

Form T-103: Schedule of Out-of-State Other Tobacco Products
http://www.michigan.gov/documents/4257_115222_7.pdf

 

Form T-108: Schedule of Other Tobacco Products Sales
http://www.michigan.gov/documents/4256_115221_7.pdf

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