Oklahoma Tax Commission
Alcohol and Tobacco Division
Oklahoma Ethics Commission
Taxation in Oklahoma
Oklahoma imposes a series of excise taxes on the manufacturer, wholesaler, warehouseman, distributor, or jobber first possessing, selling, using, distributing, exchanging, bartering, or in any manner dealing with the tobacco products in Oklahoma. No other person, wholesaler, warehouseman, distributor, jobber, or retailer may first possess, use, sell, exchange, distribute, barter, or in any manner deal with tobacco products upon which the excise tax has not been paid.
No agency or other political subdivision of the state, including municipalities, counties, or any agency thereof, may adopt any order, ordinance, rule or regulation concerning the sale, purchase, distribution, advertising, sampling, promotion, display, possession, licensing, or taxation of tobacco products or vapor products, except as provided in Section 1511 of Title 68 of the Oklahoma Statutes, Section 1-1521 et seq. of Title 63 of the Oklahoma Statutes and Section 1247 of Title 21 of the Oklahoma Statutes.
Every manufacturer, wholesaler, jobber, and distributor licensed by the Oklahoma Tax Commission to possess, use, or in any manner deal with untaxed tobacco products must file an Oklahoma Tobacco Products Tax Return (Form TOB50001) and supplemental attachments on or before the 15th day of each month, along with payment for taxes due. Retailers or consumers purchasing tobacco products and cigars from the shipper or seller through an agent are also required to file Form TOB50001.
“Cigars” means any roll of tobacco for smoking, irrespective of size or shape and irrespective of the tobacco being flavored, adulterated, or mixed with any other ingredients, where the roll’s wrapper is made chiefly of tobacco.
“Tobacco products” means any cigars, cheroots, stogies, smoking tobacco (including granulated, plug cut, crimp cut, ready rubbed, and any other kinds and forms of tobacco suitable for smoking in a pipe or cigarette), chewing tobacco (including cavendish, twist, plug, scrap, and any other kinds and forms of tobacco suitable for chewing), however prepared; and includes any other articles or products made of tobacco or any substitutes therefor.
A “retailer” is every dealer, other than a wholesale dealer, whose principal business is that of selling merchandise at retail, who sells, or offers for sale, cigars or tobacco products, irrespective of quantity, number of sales, giving them away, or exposing them where they may be taken, or purchased, or otherwise acquired by the consumer.
“Wholesaler” means a dealer whose principal business is that of a wholesale dealer or jobber, who sells any cigars or tobacco products to licensed retail dealers only for the purpose of resale, or giving them away, or exposing them where they may be taken, purchased, or otherwise acquired by the retailer.
A “distributing agent” is any person in Oklahoma who acts as an agent of any person outside the state by receiving cigars and tobacco products in interstate commerce and storing such items subject to distribution or delivery, upon order from said person outside the state, to distributors, wholesale dealers, and retail dealers, or to consumers. The term also includes any person who solicits or takes orders for cigars and tobacco products to be shipped in interstate commerce to a person in Oklahoma by a person residing outside Oklahoma, the tax not having been paid on the cigars and tobacco products.