TT-31 – Approved reduced cost of doing business markups
To: All Cigarette Wholesalers
Subject: Alternate Markups - Wholesaler’s Cost of Doing Business
Pursuant to Regulation 03.02.03.07, a number of cigarette wholesalers have applied to sell cigarettes to retailers at less than the 5% markup provided by the Maryland Cigarette Sales Below Cost Act. Those wholesalers who have applied and been approved to date are:
| License | Markup | Date effective |
|---|---|---|
| Associated Wholesalers, Inc. | 1.05% | May 1, 2001 |
| Bonanza Too Co., LLC | .91% | May 1, 2001 |
| Century Distributors, Inc. | .83% | May 1, 2001 |
| Columbia Vending | .69% | May 1, 2001 |
| Cooper-Booth Wholesale Co., LLP | .69% | May 1, 2001 |
| Costco Wholesale Corporation | 1.09% | May 1, 2001 |
| Eby F.A. Davis | .85% | August 8, 2001 |
| The George Falter Company | .85% | May 1, 2001 |
| Fleming Companies, Inc. | .73% | May 1, 2001 |
| J.T. Davenport | 1.26% | May 1, 2001 |
| Klein Candy Co., L.P. | .91% | May 1, 2001 |
| McLane Eastern, Inc. | .55% | May 1, 2001 |
| McLane Mid-Atlantic, Inc. | .55% | May 1, 2001 |
| Miller & Hartman, Inc. | 1.88% | May 1, 2001 |
| Triple C Wholesalers, Inc. | .87% | May 1, 2001 |
| United Wholesalers | .77% | May 1, 2001 |
| Wawa, Inc. | .62% | May 1, 2001 |
Approved wholesalers can choose a markup as low as the percentage indicated above. Any markup that is higher than the percentage would also be permitted. Competitors should not assume that the price of cigarettes sold by these wholesalers will be exactly the markup indicated. Cigarette wholesalers trying to meet the price of a competitor who has been approved for and is selling at a markup lower than 5%, should be guided by the provisions of Section E of Regulation 03.02.03.07.
This bulletin updates and supercedes Bulletin TT-29 on this subject and will remain in effect until further notice.
Charles W. Ehart, DPA
Director
Alcohol and Tobacco Tax Division