other-tobacco-products

OTHER TOBACCO PRODUCTS (OTP) ×

Active Cigarette & OTP License Search on MyDORWAY

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

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

Other Tobacco Products

Other tobacco products (OTP) is a term defined in the law to mean “cigars, cheroots, stogies, periques, granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco, snuff, snuff flour, cavendish, plug and twist tobacco, fine-cut, and other chewing tobacco, shorts, refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in a manner to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing or smoking, but does not include cigarettes.”

Who is required to be licensed as an Other Tobacco Products distributor?

Are tobacco product substitutes subject to the OTP Tax?

Under what circumstances may a distributor request a refund for OTP?

Tax rates

5% of the manufacturer’s price

The manufacturer’s price is “the established price at which a manufacturer sells to a wholesaler.”

Learn more about the "established manufacturer's price" in South Carolina Revenue Ruling 94-7.

How to file and pay

Anyone selling, purchasing, distributing, or importing Other Tobacco Products (OTP) in South Carolina is required to file and pay their Monthly Other Tobacco Products (OTP) Return electronically using MyDORWAY.

Due dates
You must file the Other Tobacco Products (OTP) Return by the 20th of the month following the end of the filing period. You must file each month even if you have no activity to report for the period.

File and pay on MyDORWAY
MyDORWAY is the SCDOR's free tax portal that allows you to securely file taxes and make payments using a credit card or electronic check (ACH Debit or Electronic Funds Withdrawal).

The State of South Carolina is a participant in the Master Settlement Agreement.

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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.