TT-69 – OTP manufacturer, wholesaler, and warehouse licensing
What businesses must know about licensing requirements for producing, storing, and distributing OTP
Who This Applies To
This guidance applies to:
- OTP manufacturers
- OTP wholesalers
- Storage warehouse operators
Licensing Requirements
Under Maryland law:
- Manufacturers located in Maryland must obtain a license
- Wholesalers must obtain a license
- Storage warehouses must obtain a license if storing untaxed OTP
Out-of-state manufacturers:
- Are not required to obtain a Maryland license
License Term and Fees
Licenses:
- Expire annually on April 30
Fees:
- Annual license fees apply based on license type
- Some fees may be waived if other licenses are held
Manufacturer Responsibilities
Licensed manufacturers may:
- Sell OTP to licensed wholesalers
- Store OTP for later distribution
- Distribute samples under certain conditions
Manufacturers must:
- File monthly information returns
- Avoid financial interest in wholesalers
Wholesaler Responsibilities
Wholesalers may:
- Purchase and transport untaxed OTP
- Sell to licensed retailers or other wholesalers (with approval)
Wholesalers must:
- Maintain detailed records of purchases and sales
- File monthly tax returns
- Pay OTP tax
- Maintain a tax bond
Storage Warehouse Requirements
Warehouse operators may:
- Store OTP on behalf of manufacturers
They must:
- Be licensed
- File monthly information returns
- Follow storage and recordkeeping requirements
Sales Restrictions
Businesses may NOT:
- Sell or ship OTP by mail or over the internet
What This Means for Businesses
Businesses should:
- Determine which license type applies to their role
- Apply for licenses before operating
- Maintain records and file required reports
- Ensure compliance with tax and sales rules
Important Notes
- Licensing depends on business role and location
- Recordkeeping and reporting are required
- Restrictions apply to all OTP distribution channels
Need Help?
For questions about OTP licensing:
410-260-7131