Cigarette Tax Stamps

EFFECTIVE 2019: CIGARETTE TAX STAMPS

South Carolina Department of Revenue
Tobacco Tax
Columbia, SC 29214-0138

Phone: 803-896-1970
Email: TobaccoTax@dor.sc.gov

Federal minimum age of sale of tobacco products raised

The U.S. Food & Drug Administration (FDA) regulates the sale of all tobacco products in retail stores. On December 20, 2019, the President signed legislation to amend the Federal Food, Drug, and Cosmetic Act, and raise the federal minimum age of sale of tobacco products from 18 to 21 years. It is now illegal under federal law for a retailer to sell any tobacco product – including cigarettes, cigars and e-cigarettes – to anyone under 21. For additional details on this issue or further information regarding federal requirements for tobacco retailers, please consult the FDA's website.

Cigarette Tax Stamps

Cigarette Tax Stamps are required as of January 1, 2019 in accordance with Act No. 145 of 2016.

Learn more:
Cigarette Tax Stamps overview tutorial
Regulation 117-1600

File & Pay Online

You can securely order Cigarette Tax Stamps and file and pay Tobacco & Cigarette Tax on MyDORWAY, our free tax portal!
When it's time to file for the January 2019 period, you will be able to use MyDORWAY for the new Monthly Cigarette Report and Monthly Other Tobacco Products (OTP) Tax Return.
Ordering Cigarette Tax Stamps tutorial

Cigarette & Tobacco Returns

L920: Monthly Cigarette Report
L920I: Monthly Cigarette Report Instructions
L930: Monthly Other Tobacco Products (OTP) Tax Return

FAQ

The following questions and answers provide guidance regarding the implementation of the Cigarette Tax Stamps imposed by Code Section 12-21-735, which is effective as of January 1, 2019.

Liability for Cigarette Tax Stamps

Credit for purchase of the stamping machine

Is there a credit or reimbursement for the purchase of a stamping machine?

How much will the credit be?

Who qualifies for the stamping machine credit?

What is the process for obtaining approval for the stamping machine credit and determining the amount of the credit?

How long does it take to receive approval for the stamping machine tax credit?

Is there a time limit on qualifying for the stamping machine credit?

What equipment is considered part of the stamping machine and subject to the credit?

If the stamping equipment is leased instead of purchased, is the stamping machine credit still available?

If the costs for the stamping machine and related equipment exceed $175,000, may the distributor recover any costs over $175,000?

If I have multiple licensed locations or warehouses, can I qualify for more than one credit?

Are there any restrictions on where a distributor may purchase a stamping machine?

When can I begin taking the stamping machine credit?

Purchase of stamps

Where can I purchase tax stamps?

What is the process for purchasing tax stamps?

Will tax stamps be available for pickup at SCDOR offices?

Can I purchase tax stamps on credit?

How will the process of purchasing tax stamps on credit work?

Are there any requirements or restrictions for purchasing stamps on credit?

If a distributor intends to purchase stamps using the 30-day credit plan, will the SCDOR still accept financial statements in lieu of cash or a surety bond as done in the past?

Is a bond required?

What if the distributor cannot get a bond?

May a distributor purchase rolls of stamps in increments smaller than 30,000?

Is there a limit on the number of stamps that may be purchased at any one time?

Will a distributor receive any compensation for affixing and accounting for Cigarette Tax Stamps?

Storing stamps

Stamping of cigarettes

Separate stock

Exemptions

Refunds

Under what circumstances may a distributor request a refund for stamped cigarettes?

Is a refund available for lost or stolen Cigarette Tax Stamps?

What is a bad debt for purposes of obtaining a refund?

What is the process for obtaining a refund?

What documentation is required to obtain a refund?

Sales of unstamped cigarettes between distributors

Reporting requirements

Other Tobacco Products (OTP)

Regulations

Other

These are general questions only prepared to assist SC licensed tobacco distributors in complying with the South Carolina Tobacco Code and the new Cigarette Stamping requirements which begin January 1, 2019. For any questions regarding individual circumstances and compliance with the Code, please contact the Miscellaneous Taxes section.

Federal minimum age of sale of tobacco products raised

Cigarette Tax Stamps

File & Pay Online

Cigarette & Tobacco Returns

Liability for Cigarette Tax Stamps

Who is liable for the Cigarette Tax?

Who is required to stamp cigarettes?

Credit for purchase of the stamping machine

Is there a credit or reimbursement for the purchase of a stamping machine?

How much will the credit be?

Who qualifies for the stamping machine credit?

What is the process for obtaining approval for the stamping machine credit and determining the amount of the credit?

How long does it take to receive approval for the stamping machine tax credit?

Is there a time limit on qualifying for the stamping machine credit?

What equipment is considered part of the stamping machine and subject to the credit?

If the stamping equipment is leased instead of purchased, is the stamping machine credit still available?

If the costs for the stamping machine and related equipment exceed $175,000, may the distributor recover any costs over $175,000?

If I have multiple licensed locations or warehouses, can I qualify for more than one credit?

Are there any restrictions on where a distributor may purchase a stamping machine?

When can I begin taking the stamping machine credit?

Purchase of stamps

Where can I purchase tax stamps?

What is the process for purchasing tax stamps?

Will tax stamps be available for pickup at SCDOR offices?

Can I purchase tax stamps on credit?

How will the process of purchasing tax stamps on credit work?

Are there any requirements or restrictions for purchasing stamps on credit?

If a distributor intends to purchase stamps using the 30-day credit plan, will the SCDOR still accept financial statements in lieu of cash or a surety bond as done in the past?

Is a bond required?

What if the distributor cannot get a bond?

May a distributor purchase rolls of stamps in increments smaller than 30,000?

Is there a limit on the number of stamps that may be purchased at any one time?

Will a distributor receive any compensation for affixing and accounting for Cigarette Tax Stamps?

Storing stamps

How do I store stamps until I'm ready to use them?

Stamping of cigarettes

When may a distributor begin stamping cigarettes?

When may distributors begin shipping stamped cigarettes to their customers?

May a licensed distributor, instead of using a stamping machine, use another device which imprints distinctive indicia evidencing the payment of the Cigarette Tax?

What cigarettes can you apply a Cigarette Tax Stamp to?

Separate stock

Once a SC licensed distributor has stamped the cigarettes with South Carolina tax stamps, is there a requirement to store them separately from other inventory in the warehouse?

Are licensed distributor warehouses located outside of SC required to separate their inventory once cigarettes have been properly stamped for sale in SC?

Exemptions

What sales of cigarettes are exempt from the Cigarette Tax?

Will there be a charge for tax-exempt stamps discussed in the question above?

Refunds

Under what circumstances may a distributor request a refund for stamped cigarettes?

Is a refund available for lost or stolen Cigarette Tax Stamps?

What is a bad debt for purposes of obtaining a refund?

What is the process for obtaining a refund?

What documentation is required to obtain a refund?

Sales of unstamped cigarettes between distributors

Beginning January 2019, may distributors continue to purchase unstamped cigarettes from other licensed distributors in SC as they do now?

Reporting requirements

Does a distributor still need to file a tax return form with respect to cigarettes?

Other Tobacco Products (OTP)

How is the Excise Tax on Other Tobacco Products (OTP) paid?

Regulations

Has the General Assembly approved any regulations concerning the new Cigarette Tax Stamp law?

Other

Will South Carolina retailers be allowed a grace period for selling tax-paid, but unstamped, cigarettes?

Will South Carolina distributors who had tax-paid cigarettes prior to January 1, 2019 be allowed a grace period for selling their tax-paid, but unstamped, cigarettes?