Tobacco Retail Modernization Act

Understanding the impact of the Tobacco Retail Modernization Act

The Maryland Tobacco Retail Modernization Act of 2024 prohibits retailers from displaying cigarettes, other tobacco products, or electronic smoking devices for sale unless these items are located behind a counter. It mandates
that licensed retailers verify an individual’s date of birth before selling these products. Additionally, the Act increases the application fee for a county license to sell cigarettes or tobacco products at retail. The ATCC, Maryland Department of Health, and local health departments are responsible for enforcing the provisions of this Act. Please review this document to ensure that your operations comply with the law.

Cigarette license

• Authorizes the license to:
  • Sell cigarettes to consumers through vending machines on fewer than 40 premises. The owner must have a county license for each vending machine. 
  • Sell cigarettes to consumers, or holds cigarettes for sale to consumers
  • Act as a retailer and buy stamped cigarettes from a subwholesaler or wholesaler
• Delivery limitation: May deliver no more than two cartons of cigarettes directly to a consumer if the delivery is made by the retailer or an employee. 
• New excise tax rate: $5.00 for pack of 20 / $0.25 per cigarette in package

Other tobacco product (OTP) license

• Authorizes the license to: 
  • Sell OTP to consumers
  • Buy OTP on which the tobacco tax has been paid from an OTP wholesaler, and
  • Buy premium cigars to pipe tobacco on which the tobacco tax has not been paid from an OTP manufacturer.
• New excise tax rate: 60% of the wholesale price of the tobacco products

Electronic smoking device (ESD) license

• Authorizes the license to:
  • Sell ESD to consumers
  • Buy ESD from an ESD wholesaler distributor or ESD wholesaler importer
  • If the retailer also holds a license to act as an ESD manufacturer they can sell retail ESD manufactured under the manufacturer license, and
  • Except as other prohibited or restricted under local law, distribute sample ESD to consumers. 
• Sales tax rate: 20% tax on ESDs and vaping liquid over 5 ml / 60% tax on 5 ml or less

Important tobacco changes for 2024

• Tobacco products may not be sold to any customer under the age of 21.
• A valid driver’s license or other valid government-issued ID are the only acceptable forms of identification for tobacco purchases (employer or school ID not permitted).
• The Maryland Department of Health or its designees will conduct at least one inspection per licensed retailer per year.
• Tobacco retailers are required to verify the age of all individuals under the age of 30 with a government-issued photo identification prior to selling any tobacco product, including ESDs. 
• Tobacco retailers are to keep all cigarettes, other tobacco products (OTP) (excluding premium cigars), and ESDs behind the counter in an area accessible only to the licensed retailer and employees.
• Increase of licensing fees for tobacco retailers (cigarettes and ESD) from $25 to $300.
• Increased penalties for tobacco retailers that violate state tobacco laws: 
  • Increase from $300 to $500 for first offense
  • Allows the District Court to order the Executive Director of the Alcohol, Tobacco, and Cannabis Commission (ATCC) to suspend a license for up to 90 days for a second violation, up to 180 days for subsequent violations, and revoke the license for additional subsequent violations. This mandates the ATCC to take action based on the Court’s order following a conviction for these charges.
  • Allows the clerk or the tobacco retailer to be directly cited for a violation.
• Retailers are required to post new age of sale signs in their establishments stating, ‘No person under the age of 21 may be sold tobacco products’

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