Cigarette
Tax
New in 2009:
-
New York City now has the authority to adopt rules that
require electronic filing of tax returns.
-
The interest rate on underpayments has been increased from
the federal short-term rate plus five percent to the federal short-term rate plus
seven percent. Also the default rate for underpayments has been increased from six percent
to seven and one half percent.
-
Certain taxpayers and tax prepares who file using
tax software may be required to file electronically and could be subject to civil
penalties for failure to do so.
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Provisions detailing crimes applicable to the tax has been redefined to conform
to recent New York State revisions.
The New York State and City Cigarette Tax must be paid on the possession of all cigarettes, whether bought for
resale or consumption. Cigarette Tax is paid once on each pack of cigarettes,
generally by the wholesale vendor, who passes the cost on to the retail buyer
through the price of the cigarettes.
Who Is Subject to
This Tax?
The tax is paid by an agent or distributor and passed along to the consumer
in the cost of each pack of cigarettes.
Who is Exempt from the
Tax?
No tax is owed on cigarettes under the following circumstances:
- The use of two cartons (400 cigarettes) or less in
New York City, if the user brings the cigarettes into the City for use, not
for sale;
- Cigarettes sold to the United States Government;
- Cigarettes sold to or by a voluntary unincorporated
organization of the armed forces operating a place for the sale of goods
pursuant to federal regulations;
- Cigarettes sold to the State of New York, or any
public corporation, or political subdivision of the state, not for resale;
- Cigarettes possessed by an agent or wholesale dealer
for sale to an out-of-City dealer, or for sale and shipment to a person in
another state for use there; and
- Cigarettes sold to the United Nations, its personnel and certain qualified diplomatic personnel.
Tax Forms and Filing Information
The Cigarette tax is paid by the purchaser of the cigarettes as part of the
purchase price. However, there are applications and other forms for wholesale
and retail cigarette vendors, stamping agents, and cigarette vending machine
operators.
View
Cigarette License Information
Tax Rates
The tax is imposed at a rate of 75 cents for each ten cigarettes or fraction
of a group of ten or $1.50 for a standard pack of 20 cigarettes. However, if
a package of cigarettes contains more than 20 cigarettes, the rate of tax on
the cigarettes over twenty is 38 cents for each five cigarettes or any fraction
of a group of five.
Legal Authority
Local Law: Title 11, Chapter 13, Administrative Code
Enabling Act: Chapter 235 of the Laws of 1952
See also Wholesale Cigarette Licenses and Forms, Enforcement of the Cigarette Tax, New York State Department of Taxation and
Finance
