Cigarette and Other Tobacco Products Taxes & FAQ's


Overview:

Per NRS 370 an excise tax is charged on all tobacco products; see below for rates.

    Cigarette Tax:

    20’s pack          $1.80 per pack
    25’s pack          $2.25 per pack


      Other Tobacco Tax:

      30% of Wholesale Price

       

        What procedures are needed to sell and or distribute tobacco products in Nevada? Are there state tobacco taxes? If so at what rate are they applied?

          
        RETAIL:
        NRS requires any person intending to sell cigarettes or other tobacco products in Nevada to first acquire a seller's permit. The city or county clerk in the municipality where business is to be conducted should be contacted to fulfill any local licensing requirements. If a person wants to become a retail dealer of cigarettes and/or other tobacco products, a Tobacco Retail Dealer’s License is required along with the seller’s permit.  No fee or security is required to obtain a Retail Dealer’s License.  Each license issued by the Department is only valid for the calendar year for which it is issued and must be renewed annually.  If the annual license is not renewed by January 15th, the license is cancelled automatically.  A retailer may purchase cigarettes and other tobacco products from a licensed Nevada wholesaler.  Lists of wholesaler are on the Department’s website under “Tax Forms.” 

         

        CIGARETTE WHOLESALE:
        NRS requires any person intending to sell cigarettes in Nevada to first acquire a seller's permit. If a person wants to become a wholesaler of cigarettes a Nevada Cigarette Wholesale Dealers License is also required along with a seller’s permit. The city or county clerk in the municipality where business is to be conducted should be contacted to fulfill any local licensing requirements. The minimum security to be placed is $1,000.00. Wholesalers of cigarettes must have on hand at all times a cigarette inventory of $10,000.00. The initial fee is $150.00 but is pro-rated at $37.50 per each remaining calendar quarter, not to be less than $37.50. Each license issued by the Department is only valid for the calendar year for which it is issued and must be renewed annually.  If the annual license is not renewed by January 15th, the license is cancelled automatically.

        OTP WHOLESALE:
        NRS requires any person intending to sell other tobacco products (any tobacco product other than cigarettes) in Nevada to first acquire a seller's permit. To become a wholesaler of other tobacco products (OTP), an OTP License is required in addition to a seller's permit. A person may be licensed as a wholesale dealer and as a retailer. No fee or security is required to obtain an OTP License. Annual renewal is not required. A 30% excise tax is due on the wholesale price of OTP merchandise when the merchandise is sold or distributed. Wholesale price of OTP is
        the established price for which a product made from tobacco, other than cigarettes, is sold to a wholesale dealer before any discount or other reduction is made.  A wholesale dealer must submit a monthly return due on or before the 20th of the following month of purchases, along with excise tax due. A return is due every month whether or not purchases were made. Pursuant to NRS 370.465 a list of all OTP purchases for the month, copies of invoices for purchases made directly from the manufacturer or wholesale dealer not licensed in Nevada and excise tax due are required with the monthly Other Tobacco Products return. The wholesale dealer is entitled to retain .25% of the taxes collected to cover the cost of collecting and administering the taxes. A Nevada licensed wholesaler may purchase OTP directly from a manufacturer or from another wholesaler who is not licensed with Nevada.