Selling Tobacco Products: How To Obtain Cigarette License.

Nov 1
09:01

2010

Alex Zehnbacht

Alex Zehnbacht

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A Tobacco license or a retail cigarette/tobacco license is a legal document issued by the concerned state department (as well as city/county) which signifies that a business is legally allowed to sell cigarettes and other tobacco products in accordance with the state law from a specified location to the consumers who are allowed to buy them.

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What Is Retail Tobacco License?

A cigarette license or a retail cigarette/tobacco license is a legal document issued by the concerned state department (as well as city/county) which signifies that a business is legally allowed to sell cigarettes and other tobacco products in accordance with the state law from a specified location to the consumers who are allowed to buy them.

In most states (except Arizona,Selling Tobacco Products: How To Obtain Cigarette License. Articles Colorado, Illinois, Kentucky, New Mexico, South Carolina and Virginia) every retailer who sells or will sell cigarettes or tobacco products is required to obtain a retail cigarette and tobacco license and bound to renew it annually.

You cannot start selling cigarettes and tobacco products before obtaining one.

Who Is a Cigarette Retailer?

"A Cigarette Retailer" is a person or business, other than a wholesale dealer, who sells cigarettes or tobacco products directly to the public from a specified retail location, including cigarette vending machines.

Requirements for Tobacco License

Every retailer currently selling cigarettes or tobacco products in states requiring a cigarette/tobacco license must apply for and obtain one. All new applications must be submitted with a one-time license fee (vary by state) for each retail location selling cigarettes or tobacco products, and each retail location must have a separate license. In most states a license is valid for a twelve-month period, is not assignable or transferable, and must be renewed annually.

Please remember that you may not sell cigarette and/or tobacco products without a valid Cigarette and Tobacco License.

Responsibilities of License Holder

As a retailer of cigarettes or tobacco products you must:

  • Prominently display the license at each retail location in a manner visible to the public.
  • Keep complete and legible purchase invoices for cigarettes and tobacco products for four (4) years.
  • Keep these invoices at the location indicated on your license for the first year after purchase.
  • Allow Board staff or law enforcement agencies to review your invoices upon request.

The law also adds record keeping requirements and other provisions related to your purchase of cigarettes and tobacco products.

Different Retail Locations

You must obtain a license for each retail location you own or operate. For example, if you operate several different stores and each store sells cigarettes or tobacco products, you must obtain a separate license for each store location. However, you may submit a single application for multiple licenses.

Renewing Your Cigarette License

The license must be renewed annually. If you fail to renew your license timely and allow your license to expire, you will be required to pay a reinstatement fee as a precondition for reinstatement.

REMEMBER: you may not sell cigarette and/or tobacco products without a valid Cigarette and Tobacco License/Cigarette license.

Applying for Tobacco Permit

A corporate office may submit a single application for all of its stores, but the appropriate information (addresses, etc.) must be stated on the application along with the submission of the fee for each store.

Displaying the License

Every retailer of cigarette and tobacco products must prominently display their license at each retail location in a manner visible to the public. If retailers fail to display the license, they are liable for a penalty and their license may ultimately be subject to suspension and revocation.

Failing to Obtain Tobacco License

If you do not obtain a tobacco license and continue to sell cigarettes or tobacco products you might be subject to fines and/or imprisonment of up to one year.

Types of Tobacco Products

Tobacco products include cigarettes, cigars, smokeless tobacco, pipe tobacco, etc., as defined by Revenue and Taxation department.