2019 Tobacco Tax Changes

This is a round up of Jan 1 2019 up coming tobacco excise tax changes.

Ohio Tobacco Electronic Filing

On Oct 18 Ohio Department of taxation sent email to all licensed manufacturers, wholesalers, and distributors reminding them of the electronic filing rule. "The rule mandates that taxpayers must file cigarette, OTP, and MSA returns/reports and make any payments electronically beginning with returns, reports, and payments that are due on or after January 1, 2019".
Ohio switched to XML electronic filing this year and some distributors already using the new system for filing. Ohio is giving enough heads up time for its tobacco tax payers to switch to the new electronic filing system. Starting on Jan 2019, filings and payments for the Dec 2018 period must be submitted electronically, in Jan 2019.

South Carolina

South Carolina is switching to using stamps for paying cigarettes taxes. "Cigarette Tax stamps will be required as of January 1, 2019 in accordance with Act No. 145 of 2016." South Carolina will give credit for the purchase of one stamping machine, so distributors who never had to stamp like instate only distributors will have the chance to claim credit to single stamping machine with maximum credit of $175,000. Tax payers may start purchasing Cigarette Tax stamps beginning December 3, 2018 online from the South Carolina department website. The cigarettes 20-packs stamps will be available in 3,000 size rolls and 30,000 size rolls for 20-packs.

Since the cigarettes taxes will be remitted through the purchase of stamps, distributors no longer required to file the usual cigarettes tax return. The last cigarettes tax return to be filed in Dec 2018 for the month of November. In Jan 2019, only an informational report (L-920, Cigarette Tax Report) is required to be filed by the 21st of Jan 2019.


Oregon XML e-file initial phase is geared towards filers with large files to transmit and is accomplished via FTP. Smaller distributors, they aren’t quite ready for them yet. The second phase will be via their online access. They expect start testing that phase in 2019.


Wisconsin is updating their tobacco tax xml schema e-file effective to comply with tobacco uniformity schema. Changes will include CT-101, TT-101, CT-104, and CT-118 schedule. These changes expected to go live on Jan 1 2019.


Minnesota sales tax on cigarettes will be 58.8 cents per pack of 20 cigarettes (for packages with a different quantity, adjust tax proportionally). Excise Tax on cigarettes remains 15.2 cents per cigarette.