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Tobacco industry in the US is the most regulated and administered industry. It is mandatory to obtain relevant permits and licenses when manufacturing, importing, selling tobacco products. Here are some guidelines on how to obtain tobacco wholesaler and retail licenses in the State of New Jersey.
Definition of Distributor: A person, wherever resident or located, who brings or causes to be brought into this State unstamped cigarettes purchased directly from the manufacturers and stores, sells or otherwise disposes of the same after they reach the State.
Definition of Manufacturer: A person, irrespective of location who manufactures or produces, sells, uses, stores or distributes the tobacco products within or without the State.
Definition of Wholesaler: A person who engages in the business of sale and/or purchase of taxincluded cigarettes to retail dealers who resell the cigarettes or who places the cigarettes into warehouse facilities for storage for future distribution.
Definition of retailer: Any person who, in the usual course of business, purchases or receives cigarettes from any source for the purpose of sale to the ultimate consumer and any person who, owns, leases or otherwise operates one or more vending machines for the purpose of sale of cigarettes to the ultimate consumer.
Every person starting a business as retailer, manufacturer and vending machine operator for tobacco products is required to apply for a tobacco license on form CM-100 from Division of Taxation, State of New Jersey.
Licenses are issued for one year from April to March and can be renewed by applying online on the Division of Revenue site by providing your business identification number. In order to expedite the processing, please submit the tax due before applying.
Wholesalers and distributors of tobacco products are required to file an application on form CWD-1 available on the Division of taxation, Department of Treasury, State of New Jersey website. Applications with the supporting documents are submitted to the Division of Taxation. Distributors and wholesalers are required to apply for a separate license for each business location.
Please note that the same application is used when applying for the renewal of the license. Renewal is applied on the same form CWD-1 along with the renewal fee on or before 1st of March.
If you fail to update your business information, with the Division of Taxation within 10 days of the change, your license can be revoked or cancelled by the authorities.
Cigarettes dealers and distributors are required to file monthly returns as per their inventory, type on form CR-1 for ‘resident cigarette distributor tax return’ available on the Division of Taxation, State of New Jersey site. Similarly, no resident distributors file cigarette tax return on form CNR-1.
Every person who is liable for tobacco product tax in the state is required to file a return of income with the Department of Taxation on form TPT-10. The return is filed monthly and is due on or before the 20th of the following of the reporting month. Retailers of tobacco products need to file a report of their monthly sales to the tax department.
Failure to file return of income and tax on time may impose a penalty on you that is 5% of the amount of tax payable up to a maximum 25% of the unpaid amount of tax. An additional penalty of $100 may also be imposed for each month for which tax has not been paid.
