Overview:
FAQs
are for general guidance only. For a written advice, as it relates to your
business, please request an advisory opinion, pursuant to NAC 360.190.
The
minimum legal age to purchase cigarettes and other tobacco products is twenty-one
(21) years of age.
Legislative Changes Regarding Tobacco:
In accordance with AB 53 a person shall not sell, distribute,
or offer to sell cigarettes, cigarette paper, any product containing, made or
derived from tobacco, any vapor product, any alternative nicotine product or
any product containing, made or derived from nicotine to any person under the
age of 21 years (NRS 370.521(1)). A person found in violation of the
Tobacco 21 law is liable for a civil penalty of $100 to $500 and the licensee is
liable for a civil penalty of $2,500 to $10,000 (NRS 370.521(6),(7)).
Please view the “As Enrolled” bill on this link
for the full verbiage of AB53.
NRS 370.521 requires age verification through enhanced
controls that utilize a scanning technology or other software-based system be
used prior to the sale of cigarettes or other tobacco products to any person
under 40 years of age. AB 122 adds that this age-verification provision
does not apply to a person selling cigarettes or other tobacco products in a
face-to-face transaction that occurs in an area within a casino where loitering
by persons who are under 21 years of age is already prohibited (i.e., casino
floor, race book, sports pool, restricted gaming rooms, etc.). In these
areas, age-verification by scanning technology or other software-based systems
is not required. However, should a sale of cigarettes or other tobacco
products be made to a person under the age of 21 be made in even these areas,
that person and the licensee would be in violation of NRS 370.521(1) and would
be subject to civil penalties in accordance with NRS 370.521(6) and NRS
370.521(7).
Please view the “As Enrolled” bill on this link
for the full verbiage of AB122.
Can you register for Tobacco Licenses online?
You
are able to submit an application to the Department, however, all payments are
collected after review and processing of your application. Please visit
the Nevada Tax Center website to get started.
Per
NRS 370 an excise tax is charged on all tobacco products; see below for rates.
Cigarette Tax (NRS 370.165):
Cigarette
Tax per Pack
|
No. of Cigarettes in a Pack
|
Tax Amount Per Pack
|
Pack
of 20
|
$1.80
|
Pack
of 25
|
$2.25
|
Other Tobacco Products (OTP) Tax (NRS 370.450):
Starting
July 1, 2023, OTP will be taxed in the following way:
The
tax rate for OTP in Nevada is 30 percent of the wholesale price, except if
those products are premium cigars.
With
the passage of Assembly Bill 232 the tax on premium cigars shall be 30 percent
of the wholesale price of those products, except that if 30 percent of the
wholesale price of those products is: 1) greater than 50 cents for each premium
cigar, the tax imposed shall be 50 cents for each premium cigar; or 2) less
than 30 cents for each premium cigar, the tax imposed shall be 30 cents for
each premium cigar.
A
premium cigar is defined as: “a cigar that is rolled by hand, has a wrapper made
of whole tobacco leaves and does not have a filter or mouthpiece.”
To
read Assembly Bill 232 in its entirety, please read the bill "as
enrolled" at: https://www.leg.state.nv.us/App/NELIS/REL/82nd2023/Bill/9975/Text#).
What are the licensing fees to sell Cigarettes and OTP in Nevada?
NRS 370.587
Cigarette
and OTP Licensing Fees
|
License Type
|
Fee
|
Cigarette
Manufacturer
|
$1,000.00
|
Wholesale
Dealer of Cigarettes
|
$650.00
|
Wholesale
Dealer of Other Tobacco Products
|
$650.00
|
Tobacco
Retail Dealer
|
$50.00
|
Pro-Rated
Fees by License Type
If a
new license is issued any time after January 1, the licensee will pay a
prorated fee.
Pro-Rated
Fees by License Type
|
Month
of Start Date
|
Cigarette Manufacturer
Fee Due
|
Cigarette and OTP Wholesalers
Fee Due
|
Retail Tobacco Dealers
Fee Due
|
January
|
$ 1,000.00
|
$ 650.00
|
$ 50.00
|
February
|
917.00
|
596.00
|
46.00
|
March
|
833.00
|
542.00
|
42.00
|
April
|
750.00
|
488.00
|
38.00
|
May
|
667.00
|
434.00
|
34.00
|
June
|
583.00
|
380.00
|
30.00
|
July
|
500.00
|
326.00
|
26.00
|
August
|
417.00
|
272.00
|
22.00
|
September
|
333.00
|
218.00
|
18.00
|
October
|
250.00
|
162.50
|
12.50
|
November
|
250.00
|
162.50
|
12.50
|
December
|
250.00
|
162.50
|
12.50
|
Licenses
are valid only for the calendar year in which they are issued and must be
renewed annually.
Please
be aware that additional licenses/permits may be required by the Department and
city or county governments may impose additional licensing requirements.
What licenses are required to receive or sell tobacco products in Nevada?
Cigarette
manufacturer (NRS 370.0315; NRS 370.567; NRS 370.585):
A
manufacturer or fabricator of cigarettes, an importer of cigarettes, or a
cigarette rolling machine operator all meet the definition of a cigarette
manufacturer under Nevada law. A manufacturer may not sell cigarettes or RYO
tobacco to wholesale dealers in Nevada until a manufacturer's license has been
obtained from the Department.
Wholesale
dealer of cigarettes (NRS 370.055; NRS 370.567; NRS 370.585):
A
licensed cigarette wholesale dealer may sell stamped cigarettes to other
licensed Nevada cigarette wholesale dealers or to licensed tobacco retail
dealers. A Nevada licensed wholesale dealer, located in the State, may purchase
unstamped cigarettes from a manufacturer or may purchase stamped cigarettes
from licensed Nevada cigarette wholesale dealers.
Wholesale
dealer of OTP (NRS 370.440; NRS 370.567; NRS 370.585):
Any
person located within the State of Nevada who purchases OTP from a manufacturer
or wholesale dealer and possesses, receives, sells or otherwise disposes of the
OTP to wholesale dealers or retail dealers in this State; any person
outside Nevada who sells or otherwise disposes of OTP to wholesale dealers,
retail dealers, or consumers in Nevada; and any person who manufactures,
produces, fabricates, assembles, processes, labels or finishes other tobacco
products within this State, must obtain an OTP wholesale dealers license.
Tobacco
retailer (NRS 370.033; NRS 370.567; NRS370.585):
Any person who is engaged in selling cigarettes or OTP
to ultimate consumers must obtain a Nevada tobacco retail dealer's license. A
tobacco retail dealer may purchase cigarettes or OTP from Nevada licensed
wholesale dealers.
Are vapor and alternative nicotine products subject to an excise tax?
NRS
370.0318; NRS 370.054
The
definition of OTP includes vapor and alternative nicotine products. Included in
the definition of vapor products are the components of such products or
devices, even if sold separately. All OTP, including vapor and alternative
nicotine products, are subject to the OTP tax.
What is the definition of OTP wholesale price?
NRS
370.440(7)
Wholesale
price is defined as the price for which other tobacco products are sold to a
wholesale dealer of other tobacco products without any discount or other
reduction on account of any of the following:
- Trade
discounts, cash discounts, special discounts, cash rebates
- Cost of
materials used, labor or service cost
- The cost of
transportation of the other tobacco products before its purchase by the
wholesale dealer of other tobacco products
- Any services
that are a part of the sale, including shipping, freight, warehousing,
customer service, advertising or any other service related to the sale
For
other tobacco products sold to a retail dealer or ultimate consumer by a
wholesale dealer of other tobacco products that manufactures, produces,
fabricates, assembles, processes, labels or finishes OTP in this State, the wholesale
price is the established price for which the OTP is sold to the retail dealer
or ultimate consumer before any discount or reduction is made.
When does the wholesale dealer pay the OTP tax?
NRS
370.450
A 30%
OTP Tax is imposed on the wholesale dealer:
- At the time OTP
is first possessed or received by a wholesale dealer who maintains a place
of business in this state for sale or disposition in this State;
- At the time the
OTP is sold by an out of state wholesale dealer to a tobacco retails
dealer or ultimate consumer in this state; or
- For OTP
manufactured, produced, assembled, labeled, or finished in the State, at
the time the OTP is sold in this state to a wholesale dealer, retail
dealer, or ultimate consumer.
What documentation is required for audit and/or compliance purposes?
All
purchases, sales, and financial documentation pertaining to the business of
each cigarette manufacturer, cigarette wholesaler, OTP wholesaler and retail
dealer must be retained for a minimum of 5 years after the date of the
transaction pursuant to NRS 370.255 and NRS 370.593.
NRS
370.593 states, in part, the following:
All
licensees shall retain for not less than 5 years all receipts, invoices,
records, inventory records and financial statements necessary to substantiate
information submitted by the licensee to the Department in any report or return
required pursuant to this chapter. Upon request, a licensee shall provide
access to and permit the Department to inspect, examine, photocopy and audit
all receipts, invoices, records, inventory records and financial statements.
Additionally, the licensee shall allow access to all records and financial
statements relating to and verifying the gross income of the licensee.
The
Department may demand access to inspect, examine, photocopy and audit all
receipts, invoices, records, inventory records and financial statements of any
affiliate of a licensee involved in the financing, operation or management of
the licensee.
Tobacco
retail dealers must retain cigarette invoices for every transaction. Invoices
must indicated the name and address of the wholesale dealer from whom, or the
address of another facility of the same retail dealer from which, the
cigarettes were received, and the quantity of each brand and style of the
cigarettes received in the transaction.
Cigarette
wholesalers and manufacturers must maintain copies of invoices for every
transaction in which the wholesaler or manufacturer is the seller, purchaser,
consignor or consignee of cigarettes. The invoices or documentation must
indicate the name and address of the consignor, seller, purchaser or consignee,
an the quantity by brand and style of the cigarettes involved in the
transaction.
Pursuant
to NRS 370.470 other tobacco products wholesalers and retailers must obtain and
maintain for 5 years invoices from each manufacturer or wholesale dealer of
other tobacco products from whom they have purchased other tobacco products
from. The invoices must be separate for each purchase made and must include the
following information:
- Name and
address of the manufacturer or wholesale dealer of other tobacco products
who sold the other tobacco products
- The name and
address of the wholesale dealer of other tobacco products or retail dealer
who purchased the other tobacco products
- The date of the
purchase
- The invoice
number
- The method of
delivery
- The itemized
quantity of each brand, type, size, and price of other tobacco products
purchased
Records
required must be preserved on the licensed premises of the manufacturer,
wholesale dealer or retail dealer in such a manner as to ensure permanency and
accessibility for inspection at reasonable hours by authorized personnel of the
Department. With the permission of the Department, manufacturers, wholesale
dealers and retail dealers with multiple places of business may retain
centralized records but shall transmit duplicates of the invoices or the
equivalent documentation to each place of business within 24 hours after
requested by the Department.