IPCPR Legislative | Ohio

Ohio

ohio

Ohio State Contact Information

Department of Taxation

Cigarette Tax
Excise & Energy Tax Division

(855) 466-3921
(206) 350-6722 fax

Office of the Legislative Inspector General
Joint Legislative Ethics Committee
(614) 728-5100

Taxation in Ohio

Ohio imposes a tax on tobacco products purchased for sale in the state by any person or entity engaged in the business of tobacco product distribution. This tax is levied on tobacco products that a distributor brings, or causes to be brought, into the state for distribution within the state, or that any out-of-state distributor sells to wholesale or retail dealers located in the state for resale.

 

Ohio Rev. Code § 5743.51

 

An excise tax is levied on sellers of tobacco products who have continuous and widespread contacts with the state whenever the tobacco product is delivered to an in-state consumer for storage, use, or other consumption.

 

Ohio Rev. Code § 5743.62

 

If the above taxes have not been paid by the distributor or seller, then an excise tax is levied on the storage, use, or other consumption of the tobacco products.

 

Ohio Rev. Code § 5743.63

 

Tobacco samples are subject to the Ohio tobacco products tax, as the term “sale” includes exchange, barter, and gift.

 

Ohio Rev. Code § 5743.01

 

Staff reported that Ohio localities do not levy additional taxes on tobacco products other than cigarettes.

The tax on tobacco products other than little cigars is 17% of the wholesale price of the product.

 

The tax on little cigars is 37% of the wholesale price of the little cigars, for invoices dated October 1, 2013 or later.

 

Ohio Rev. Code § 5743.51
Ohio Rev. Code § 5743.62
Ohio Rev. Code § 5743.63

Each distributor of tobacco products subject to the tax levied by § 5743.51 must file with the tax commissioner, on or before the 23rd day of each month, an Other Products Tax Return [Form OTP 2 (In-state) or Form OTP 6 (Out-of-state)] and all associated forms (Schedules A through I) for the preceding month, along with payment for the taxes due. A return must be filed for each month even if no tax is due.

 

Ohio Rev. Code § 5743.52.

 

Each seller of tobacco products who is subject to the excise tax levied by § 5743.62 must file with the tax commissioner, on or before the last day of each month, an Other Tobacco Products Tax Return for the preceding month, along with the taxes due. A return must be filed for each month even if no tax is due.

 

Ohio Rev. Code § 5743.62.

 

Each person engaged in the storage, use, or consumption of tobacco products who is subject to the tax levied by § 5743.63 must file with the tax commissioner, on or before the last day of each month, an Other Tobacco Products Tax Return for the preceding month, along with the taxes due.

 

Ohio Rev. Code § 5743.63

Ohio Department of Taxations: Tobacco Tax Forms
http://www.tax.ohio.gov/Forms.aspx?TaxType=Other%20Tobacco%20Products%20%28OTP%29

 

Form OTP 2: Other Tobacco Products Tax Return (In-State Distributors)
http://www.tax.ohio.gov/portals/0/forms/excise/other_tobacco_products-otp/OTP_OTP2_FI.pdf

 

Form OTP 6: Other Tobacco Products Tax Return (Out-of-State Distributors)
http://www.tax.ohio.gov/portals/0/forms/excise/other_tobacco_products-otp/OTP_OTP6_FI.pdf

 

Form OTP 99: Request to Transport Other Tobacco Products Between Distributors
http://www.tax.ohio.gov/portals/0/forms/excise/other_tobacco_products-otp/OTP_OTP99_FI.pdf

 

Forms OTP 3 – OTP 5, OTP 9 – OTP 11, and OTP 13 – OTP 15: Other Tobacco Products Schedules A – I
http://www.tax.ohio.gov/Forms.aspx?TaxType=Other%20Tobacco%20Products%20%28OTP%29

 

Appendix A: Affidavit in Support of Retail Tobacco Store Exemption
http://www.odh.ohio.gov/~/media/ODH/ASSETS/Files/behsmoke%20free%20enforcement/affidavit.ashx

Definitions in Ohio

 

“Smoking” means inhaling, exhaling, burning, or carrying any lighted cigar, cigarette, pipe, or other lighted smoking device for burning tobacco or any other plant.

 

Ohio Rev. Code § 3794.01(A)

 

“Tobacco product” or “other tobacco product” means any product made from tobacco, other than cigarettes, that is made for smoking or chewing, or both, and snuff.

 

Ohio Rev. Code § 5743.01(I)

 

“Little cigar” means any roll for smoking, other than cigarettes, made wholly or in part of tobacco that uses an integrated cellulose acetate filter or other filter and is wrapped in any substance containing tobacco, other than natural leaf tobacco.

 

Ohio Rev. Code § 5743.01(P)

 

“Retail tobacco store” means a retail establishment that derives more than 80% of its gross revenue from the sale of cigars, cigarettes, pipes, or other smoking devices for burning tobacco and related smoking accessories and in which the sale of other products is merely incidental.

 

Ohio Rev. Code § 3794.01(H)

 

“Retail dealer” includes, in reference to dealers in tobacco products, any person in the state engaged in the business of selling tobacco products to ultimate consumers in the state, regardless of quantity, amount, or number of sales.

 

Ohio Rev. Code § 3794.01(C)

 

“Distributor” means:

 

(1) Any manufacturer who sells, barters, exchanges, or distributes tobacco products to a retail dealer in the state, except when selling to a retail dealer that has filed with the manufacturer a signed statement agreeing to pay and be liable for the tax imposed by § 5743.51

 

(2) Any wholesale dealer located in the state who receives tobacco products from a manufacturer, or who receives tobacco products on which the tax imposed by this chapter has not been paid;

 

(3) Any wholesale dealer located outside the state who sells, barters, exchanges, or distributes tobacco products to a wholesale or retail dealer in the state; or

 

(4) Any retail dealer who receives tobacco products on which the tax has not or will not be paid by another distributor, including a retail dealer that has filed a signed statement with a manufacturer in which the retail dealer agrees to pay and be liable for the tax that would otherwise be imposed on the manufacturer by § 5743.51.

 

Ohio Rev. Code § 5743.01(K)

 

“Seller” means any person located outside this state engaged in the business of selling tobacco products to consumers for storage, use, or other consumption in this state.

 

Ohio Rev. Code § 5743.01(M)

 

“Manufacturer” means any person who manufactures and sells cigarettes or tobacco products.

 

Ohio Rev. Code § 5743.01(N)

 

“Importer” means any person that is authorized, under a valid permit issued under Section 5713 of the Internal Revenue Code, to import finished cigarettes into the United States, either directly or indirectly.

 

Ohio Rev. Code § 5743.01(O)

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