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Licensing requirements

A license to purchase, sell, and distribute manufactured tobacco is free and is required for the following persons before engaging in the sale of Other Tobacco Products in South Carolina:

  • Wholesalers selling and distributing tobacco products
  • Vending machine operators selling tobacco products through vending machines placed on another person’s premises
  • Other Tobacco Product manufacturers' sales representatives
  • Retailers that purchase untaxed tobacco products from unlicensed wholesalers

Additional requirements

Other Tobacco Products Licenses are only valid for the person in whose name it is issued and only for the business transactions at the location designated on the license.​

  • Wholesalers and retailers (selling untaxed tobacco products) must have a license for each place of business.
  • Vending machine operators are only required to obtain one license and must maintain an up-to-date list of the location of each tobacco products vending machine in South Carolina.
  • Manufacturers' sales representatives are only required to obtain one license. Apply by paper using the L-917.

Retailers (e.g., smoke shops, convenience stores, hookah lounges, etc.) are not required to obtain an OTP license if they purchase tax-paid tobacco products from a licensed SC tobacco wholesaler.

Applicants must apply for the Other Tobacco Products license on MyDORWAY, our secure online tax portal.

Vapor products and all other products delivered through an aerosolized solution are not subject to the OTP tax. The tax on tobacco products applies to forms of tobacco prepared in a manner suitable for chewing, smoking, or other consumption.

Apply for a license

How to file and pay

Refunds will only be made for:

  • Other Tobacco Products returned as unsellable back to the manufacturer
  • Damaged Other Tobacco Products returned back to the manufacturer
  • South Carolina Tax-Paid Other Tobacco Products sold outside of the geographic limits of South Carolina in accordance with the provisions of Section SC Code Section 12-21-90;
  • Any other circumstance authorized by the General Assembly

Note: Line 1 & 2 must be submitted on the Application for Other Tobacco Products (OTP) Tax Refund (L-1030​) to accompany Manufacturers Returned Goods Affidavit and Credit Memorandum.

Form NameForm Number
Monthly Other Tobacco Products (OTP) ReturnMust be filed on MyDORWAY
Application for Other Tobacco Products Tax RefundL-1030
Application for License to Purchase, Sell, and Distribute Manufactured TobaccoMust be filed on MyDORWAY
Manufacturer's Sales Representatives' License Application for Cigarette, Cigar, and Tobacco ProductsL-917
State Tobacco Tax BondL-2167

The following sales are exempt by law from the Other Tobacco Products Tax:

  • Sales to the United States Government
  • Sales to a United States Government instrumentality for Army, Navy, Marine, or Air Force purposes and delivered to a place lawfully ceded to the United States
  • Sales to a United States Government instrumentality for Army, Navy, Marine, or Air Force purposes and delivered to a ship belonging to the United States Navy for distribution and sale to members of the military establishment only

 

Frequently asked questions

Is a bond required to obtain a license?

A bond is not specifically required with respect to the Other Tobacco Products (OTP) Tax. However, OTP licensees who are not liable for the Cigarette Tax can be required to post a bond if the licensee fails to pay the OTP Tax for as many as two filing periods in a 12-month period.​

Download and print the State Tobacco Tax Bond (L-2167).

Why are OTP licenses no longer printed on green paper?

The SCDOR now issues OTP licenses on standard white paper. Previously issued OTP licenses printed on green paper are still valid and do not need to be updated.

Did you know? You can use the license lookup tool on MyDORWAY to verify Tobacco Licenses?

How does the South Carolina Code of Laws define the "established manufacturer's price"?​
  • The "established manufacturer's price," South Carolina Revenue Ruling #94-7​ advised:
    ​The “established price” of snuff, chewing tobacco and smoking tobacco for purposes of calculating the tobacco tax on promotional packages, products received free of charge, and promotional allowances, as described in the facts, is as follows:
    • ​​Promotional Packaging - A product packaged for the consumer as part of a “buy one get one free” or similar promotion by the manufacturer is a packaged unit with an established price that is distinct and separate from the established price for the same product sold individually. Therefore, the established price is the recognized and accepted sum of money asked by the manufacturer for each packaged unit during the promotion.
    • Products Received Free of Charge - If a manufacturer offers a wholesaler, during a specified time period, the opportunity to receive one case of a product free of charge if he purchases one or more cases of the same product, the total price that the wholesaler pays is the “established price” for all the cases of the product received under the promotion.
      For example, if the wholesaler purchases 10 cases for $200 and receives 1 case free, the established price upon which the tax is calculated for all 11 cases is $200. A transaction must be viewed based upon its substance rather than its form. As such, the taxpayer in the example has purchased 11 cases for $200.
    • Promotional Allowance - If a manufacturer offers a promotion that merely reduces the price of the product, the established price is the recognized and accepted sum of money asked by the manufacturer for the product during the promotion.
      For example, the product may normally sell for $175 per case; however, the manufacturer is offering for a limited time the product for $160 per case with the invoice showing a unit price of $175 and a promotional allowance of $15. As a result of the promotion, the established price is $160.
  • ​The “established price” for the purpose of calculating the tobacco tax is the amount charged by the manufacturer to the wholesaler before any cash discounts for early payment are taken.

How do I close my Business Tax Account?
  • You can close your account on MyDORWAY. Once you've logged in, click More, then select Close a Tax Account, located under the Access section.
  • If filing by paper, check the box labeled Final on the return.

Where do you report evidence of possession of contraband cigarettes?

Visit the nearest SCDOR Taxpayer Service Center to report evidence of possession of contraband cigarettes. 

Where do you report sales to minors?

Information concerning retail sales of cigarettes to minors should be reported to the local law enforcement agency.

Mailing address:

South Carolina Department of Revenue | PO Box 125 | Columbia, SC 29214-0138