TT-68 – OTP retailer and tobacconist license requirements
What retailers must know about new licensing requirements for other tobacco products
Maryland created new licensing requirements for retailers selling other tobacco products, and this guidance explains who must obtain a license, the difference between retailer and tobacconist licenses, and key compliance rules.
What you need to know
- Retailers must have an OTP retailer or tobacconist license
- The new licensing system replaces prior registration
- Licenses are issued annually and expire April 30
- Internet and mail-order sales of OTP are prohibited
Who This Applies To
This guidance applies to:
- OTP retailers
- Tobacconists
- Cigarette retailers selling OTP
New Licensing Requirement
Effective May 1, 2011:
- Any person selling OTP must have a valid license
Retailers must obtain either:
- An OTP retailer license
- A tobacconist license
OTP Retailer vs. Tobacconist
An OTP retailer:
- Sells OTP directly to consumers
A tobacconist:
- Must derive at least 70% of revenue from tobacco products and accessories
Retailers:
- May hold only one of these licenses
License Term and Fees
Licenses:
- Expire annually on April 30
Fees:
- Annual license fee applies
- Fee may be waived for certain cigarette license holders
Purchasing and Tax Rules
Retailers must:
- Purchase most OTP tax-paid from licensed wholesalers
Exceptions:
- Premium cigars and pipe tobacco may be purchased directly from manufacturers
- Retailers must file quarterly tax returns and pay applicable tax
Recordkeeping Requirements
Retailers must:
- Maintain invoices and purchase records
- Keep records for at least 2 years
Sales Restrictions
Retailers may NOT:
- Sell OTP by mail or over the internet
What This Means for Businesses
Retailers should:
- Obtain the correct license before selling OTP
- Determine whether they qualify as a tobacconist
- Follow purchasing and tax rules carefully
- Maintain proper records
Important Notes
- Registration has been replaced by licensing
- Only one license type may be held
- Sales restrictions apply to all retailers
Need Help?
For questions about OTP licensing:
410-260-7131