A "cigarette" is:

1. Any roll for smoking containing tobacco or any substitute for tobacco wrapped in paper or in any substance other than a tobacco leaf; or
2. Any roll for smoking containing tobacco or any substitute for tobacco, wrapped in any substance, weighing three pounds per thousand or less, however labeled or named, which because of its appearance, size, type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item.

Since the imposition of the cigarette tax applies to “all cigarettes made of tobacco or any substitute for tobacco,” cigarettes that do not contain tobacco, such as clove cigarettes, are subject to the tax.

In addition, a cigar which weighs three pounds per thousand or less, regardless of how it’s labeled or named, is considered a cigarette for the purposes of the cigarette tax.

The tax rate for cigarettes is $0.0285 on each cigarette. Cigarettes are typically sold in packs of 20 or 25. The tax on a pack of 20 cigarettes is $0.57 and $0.7125 on a pack of 25.

Note: The cigarette tax is actually a combination of two taxes - excise tax of 3 1/2 mills per cigarette and a surtax of $0.025 per cigarette.

Yes. For additional information regarding the Master Settlement Agreement, visit the South Carolina Attorney General’s website at http://www.scag.gov/civil/tobacco.

1. The distributor must not have any outstanding tax stamp purchase liabilities (i.e., no additional credit purchases will be allowed if a distributor has any credit purchase liability that is past due); and 
2. The distributor must post a surety bond prior to purchasing stamps on credit in the amount of 110% of its estimated tax liability for 30 days, but not less than $2,000.