The DC Official Code § 47-2401 et seq. mandates that the Office of Tax and Revenue enforce the cigarette tax laws that include, but are not limited to, contraband cigarettes and any conveyance and/or devices used in the contraband transactions. The program also includes regular investigations of any violations related to cigarette tax laws. The activities related to enforcing the DC Code Cigarette Tax provisions include auditing wholesalers and suppliers and ensuring that the DC cigarette excise tax stamps comply with the District's tax laws and support the efforts of the Office of Attorney General and Office of the Chief Financial Officer to comply with the Tobacco Master Settlement Agreement (DC Official Code § 7-1801.02).
The program has three primary goals:
- To eliminate the sale and/or possession of unstamped cigarettes;
- To eliminate the sale and distribution of counterfeit non-DC tax stamps; and
- To eliminate the sale of gray market cigarette sales in the District.
Who Must File and What Forms Must Be Filed?
- Any licensed wholesalers who use (i.e., possesses, stores, retains, imports, etc.) cigarettes in the District of Columbia from manufacturers that are not Participating Manufacturers under the Tobacco Master Settlement Agreement must file form FR-467 on a monthly basis.
- Any licensed wholesalers who use (i.e., possesses, stores, retains, imports, etc.) any brand of cigarettes in the District of Columbia must file form FR-467E on a quarterly basis.
- Any seller of tobacco products (“little cigars,” roll your own (RYO) tobacco, vapor products, and other tobacco product) in the District of Columbia must file form FR-1000Q on a quarterly basis.
How and When to File Returns
All returns must be filed electronically on MyTax.DC.gov.
- Form 467 – Monthly Cigarette Wholesalers Report is due on or before the 25th day of the month following the month during which sales or distribution of cigarettes took place.
- Form 467E – Quarterly Cigarette Wholesalers Report must be filed no later than 20 calendar days after the end of each calendar quarter. The due dates for this form are January 20, April 20, July 20, and October 20 of each year.
- Form FR-1000Q – Tobacco Products Excise Tax Return must be filed and the tax due must be paid no later than the 21st calendar day after the end of each calendar quarter. The due dates for this form are January 21, April 21, July 21, and October 21 of each year.
Registration and License requirements
The District of Columbia requirements for Tobacco distributors/wholesalers to sell cigarettes and OTP products are as follows:
- Register your business with the Office of Tax and Revenue in person or online on MyTax.DC.gov to create your account. (Under General Sales/Services Business you check Cigarette Retail)
- Apply for cigarette License from the Department of Licensing and Consumer Protection (DLCP).
- File all returns under Tobacco taxes. They are the FR-467 monthly return, FR-467E quarterly return, and FR-1000Q quarterly return. All taxes must be remitted to the District of Columbia when due.
Cigarettes stamp tax rate and purchase
A roll of stamps is 30,000. You are required to complete the Purchase Order form before you go to Office of Finance and Treasury (OFT) to purchase stamps. Below is an example on how much it costs.
Stamps - 30,000
Tax rate - $5.03
Total - A*B = 150,900
Discount - 2% = 3,018
Cost of stamps = 150,900 - 3018 = $147,882
Pact Act registration and reporting
Pursuant to the Pact Act, the Federal government requires all vendors to register using the ATF Form 5070 and send monthly reports to Florence Sam (DC Office of Tax and Revenue) and Brian Caldwell (Office of Attorney General). You do not need a license to file Pact Act reports or specific requirements on the report format.
Cigarettes/OTP tax rates
Tax rates are as follows:
| Products | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|---|---|
| Little Cigars | $0.145 |
$0.145 |
$0.145 |
$0.145 |
$0.247 | $0.249 | $0.250 | $0.2505 | $.2515 | $.2515 |
| RYO | 70% | 67% | 65% | 60% | 96% | 91% | 91% | 80% | 79% |
71% |
| Vapor Products | 0 | 67% | 65% | 60% | 96% | 91% | 91% | 80% | 79% | 71% |
| All Other Tobacco Products | 70% | 67% | 65% | 60% | 96% | 91% | 91% | 80% | 79% | 71% |
Effective October 1, 2011:
DC Code § 47-2702(a) - In lieu of sales tax, there is a surtax levied on wholesalers on cigarettes sold in the District of Columbia. The cigarette surtax is 36¢ for a package of 20 cigarettes and for packages more than 20, there is an additional 1.8¢ for each cigarette above 20.
| Effective | Excise Tax | Increase | Surtax | Cost Per Pack |
|---|---|---|---|---|
| 10/01/2011 | 2.50 | 0.36 | 2.86 | |
| 10/01/2014 | 2.50 | 0.04 | 0.40 | 2.90 |
| 10/01/2015 | 2.50 | 0.01 | 0.41 | 2.91 |
| 10/01/2016 | 2.50 | 0.01 | 0.42 | 2.92 |
| 10/01/2017 | 2.50 | 0.02 | 0.44 | 2.94 |
| 10/01/2018 | 2.50 | 2.00 | 2.44 | 4.94 |
| 10/01/2019 | 2.50 | 0.04 | 2.48 | 4.98 |
| 10/01/2020 | 2.50 | 0.02 | 2.50 | 5.00 |
| 10/01/2021 | 2.50 | 0.01 | 2.51 | 5.01 |
| 10/01/2022 | 2.50 | 0.02 | 2.52 | 5.02 |
| 10/01/2023 | 2.50 | 0.03 | 2.53 | 5.03 |
| 10/01/2024 | 2.50 | 0.00 | 2.53 | 5.03 |
Redemption of Cigarette Tax Stamps
To request a credit or refund of destroyed or useless cigarette stamps, taxpayers should apply by completing the cigarette stamp redemption form on their MyTax.DC.gov account.
Application is hereby made in accordance with DC Code 47-2407 “To Provide for the redemption of District of Columbia tax stamps” for the credit of the CIGARETTE TAX STAMPS.
Tobacco Excise Tax Line Instructions
- Forms FR-467, FR-467E, and FR-1000Q (current and prior years)