Every person engaged in business as a wholesale merchant or retailer in North Carolina must obtain a Certificate of Registration by filing a Business Registration Application for Income Tax Withholding, Sales and Use Tax, and Machinery and Equipment Tax (Form NC-BR).
A wholesale dealer must then obtain a continuing tobacco products license for each place of business by filing an Application for Cigarette Distributor’s License and Tobacco Products (Other Than Cigarettes) (Form B-A-2), along with the Appointment of Secretary of State for Service of Process (Form B-A-28), a Tax Bond for Tobacco Products Other Than Cigarettes (Form B-A-29) with a bond amount of $2,500, and an application fee of $25. A retail dealer must also obtain a continuing tobacco products license for each place of business by filing Form B-A-2, along with Form B-A-28, Form B-A-29 with a bond amount of $2,500, and an application fee of $10. These licenses do not require renewal.
Wholesale and retail dealers liable for the excise tax on tobacco products other than cigarettes must file the Monthly Other Tobacco Products Excise Tax Return (Form B-A-101) and the Tobacco Report Tax-Paid Products of Nonparticipating Manufacturers (Form B-A-7) within 20 days after the end of each month, even if no tax is due.
Cigar bars are exempt from the ban on smoking if smoke from the cigar bar does not migrate into an enclosed area where smoking is prohibited. A cigar bar that begins operation after July 1, 2009, may only allow smoking if it is located in a freestanding structure occupied solely by the cigar bar and smoke from the cigar bar does not migrate into an enclosed area where smoking is prohibited. A cigar bar must satisfactorily file an Application/Affidavit for Cigar Bar Exemption with the Department of Health on a quarterly basis, reporting the revenue generated from the sale of alcoholic beverages and cigars as a percentage of quarterly gross revenue. To qualify as a cigar bar, an establishment must:
Generate 60% or more of its quarterly gross revenue from the sale of alcoholic beverages and 25% or more of its quarterly gross revenue from the sale of cigars;
Have a humidor on the premises
Not allow individuals under the age of 21 to enter