How to Register
The Department of Revenue administers Tobacco Taxes on cigarettes, other tobacco products, snuff, and vapor products. Cigarette and Tobacco Licenses are obtained online through the Kentucky One Stop Business Portal.
2020 Legislative Changes
Cigarette Tax Stamp Deferred Payment
Effective August 1, 2020, a cigarette wholesaler may choose to defer payment on a stamp order up to 10 days. In order to defer payment, the wholesaler must have a completely executed surety bond (Form 73A530) on file with the DOR. The surety bond must be in an amount that is equal to or greater than the tax, interest, penalties, and collection fees associated with any new or pending-payment stamp order. If the surety bond is not greater than the total of tax, interest, penalties, or collection fees, the wholesaler must pay in full at the time of that particular order. An exception to the payment deferral is during the month of June when stamp orders cannot be deferred beyond June 25th to ensure payment on all stamp orders before fiscal year end.
Cigarette Tax Bond Form73A350 (8-20).pdf
Bond Calculation Template.xlsx
Vapor Products Tax, Licensing, and Electronic Filing Submission
House Bill (HB) 351 was enacted and established a tax on vapor products. Effective August 1, 2020, the vapor products tax rate on closed vaping systems is $1.50 per cartridge and the rate on open vaping systems is 15% of the actual price at which the distributor sells the product. Taxable items include both nicotine and non-nicotine products as provided in the following definitions.