TT-40: Cigarette Minimum Price Calculator Tools
What businesses must know about using state calculators to determine minimum cigarette prices
Maryland provides online tools to help businesses calculate the minimum legal price for cigarettes, and this guidance explains how these calculators work and how they support compliance with pricing laws.
What you need to know
- The state provides an online minimum price calculator
- A second calculator allows custom markup inputs
- Calculators help ensure compliance with pricing laws
- Prices must meet or exceed the approved minimum markup
Who This Applies To
This guidance applies to:
- Cigarette manufacturers
- Wholesalers
- Sub-wholesalers
Minimum Price Calculator
Maryland provides:
- An online calculator to determine the minimum legal selling price
The calculator:
- Uses the approved minimum markup percentage
- Helps ensure pricing complies with state law
Alternate Calculator Option
An additional calculator allows businesses to:
- Enter a markup higher than the minimum approved percentage
This tool:
- Provides flexibility while maintaining compliance
- Ensures prices remain at or above the legal minimum
How to Use the Calculators
To determine minimum pricing:
- Enter required pricing inputs
- Apply the appropriate markup
- Use the calculated result as the minimum legal price
Compliance Requirement
Businesses must:
- Sell cigarettes at or above the calculated minimum price
- Use approved markup percentages
Failure to comply may result in:
- Violations of the Sales Below Cost Act
What This Means for Businesses
Businesses should:
- Use the calculator for all pricing decisions
- Apply at least the minimum markup
- Maintain consistency in pricing practices
- Monitor updates to pricing rules
Important Notes
- The calculator is a compliance tool, not optional guidance
- Higher markups are allowed, but not lower
- Pricing must always meet legal minimums
Need Help?
For questions about cigarette pricing tools, contact the ATCC: 410-260-7314 ext. 4 or [email protected]