TT-73 – OTP tax increase and floor tax (2012)
To: All other tobacco products (OTP) retail dealers
Subject: OTP tax increase - floor tax
The 2012 Special Session of the Maryland General Assembly enacted legislation changing the excise tax on the wholesale price of OTP to the following:
- Cigars – 70%
- All Other OTP – 30%
- Premium Cigars – Tax rate remains unchanged at 15%
The new tax rate applies to all OTP floor stock in Maryland on July 1, 2012. For your benefit, we have created a list of Frequently Asked Questions (enclosed) which describes what types of products are considered OTP and the difference between a cigar and a premium cigar. These FAQ’s also contain useful information on the proper filing of the OTP floor tax.
In order to report and remit the additional tax due on your OTP inventory, you will need to complete the enclosed 2012 Other Tobacco Products Floor Tax Return. Please read the forms carefully and complete them before moving or selling any OTP on July 1, 2012. A physical inventory is required of all OTP held in your possession at 12:01 a.m. on July 1, 2012 and must be entered in the proper space on the tax return.
Please use the enclosed self-addressed envelope to submit your return and additional tax. The 2012 Other Tobacco Products Floor Tax Return can be filed anytime after July 1, 2012, but must be submitted no later than October 15, 2012. Any OTP not accounted for in accordance with the above would be considered contraband and subject to confiscation.
The floor tax return, FAQ’s and other information related to OTP can be found on the Comptroller of Maryland’s Website at www.marylandtaxes.com. Questions related to the OTP floor tax can be directed to Taxpayer Service at 410-260-7980, 1-800-638-2937, or [email protected]
Jeffrey A. Kelly
Director