Form 04-520 - Cigarette And Tobacco Products Tax License Application With Instructions
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1
2INSTRUCTIONS
Alaska Cigarette and Tobacco Products License Application
License Required
Tax Imposed
No person shall import, manufacture, sell, purchase, possess or
There is an excise tax of 80 mills on each cigarette ($1.60 per
acquire cigarettes as a manufacturer, distributor, direct-buying
pack of 20) imported or acquired in Alaska. The cigarette tax
retailer, vending machine operator, or buyer without first having
must be paid through the purchase of cigarette tax stamps. Use
obtained the appropriate license. In addition, no person shall
Form 04-620 to purchase cigarette tax stamps. Taxpayers are
distribute any tobacco product without first having obtained the
entitled to a discount of 3% on the first $1,000,000 and 2% on
appropriate license.
the next $1,000,000 of cigarette tax stamps purchased in a
calendar year.
Businesses located out of state that wish to sell cigarettes and
tobacco products into the state and pay the tax imposed under
A tax is levied on tobacco products at the rate of 75% of the
AS 43.50, may apply for a cigarette wholesaler-distributor
wholesale price. Taxpayers may deduct 0.4 percent (.004) of
license or a tobacco distributor license.
the total tobacco products tax to cover the expense of collecting
and remitting the tobacco products tax.
Please be advised that by applying for a license authorizing the
sale of cigarettes, you are agreeing to purchase and affix
Other Definitions
cigarette tax stamps, or designate a third party to do so on your
CIGARETTE means a roll for smoking of any size or shape,
behalf, as the means of paying the state excise tax.
made wholly or partly of tobacco whether the tobacco is
flavored, adulterated, or mixed with another ingredient, if the
Caution: A person who fails to obtain a cigarette license prior
wrapper or cover of the roll is made of paper or a material other
to importing cigarettes into the state is subject to a penalty of
than tobacco.
100% of the tax due on the cigarettes in addition to the tax.
TOBACCO PRODUCTS include the following: cigars;
Definition of License Types
cheroots; perique; snuff and snuff flour; smoking tobacco,
BUYER is a person who imports or acquires cigarettes for the
including granulated, plug-cut, ready-rubbed, and any form of
person's own consumption from any source other than a
tobacco suitable for smoking in a pipe or cigarette; chewing
manufacturer, distributor, direct-buying retailer, retailer, or
tobacco, including cavendish, twist, plug, scrap, and tobacco
wholesaler-distributor.
suitable for chewing; or articles or products made of tobacco or
a tobacco substitute, but not including cigarettes as defined
DIRECT-BUYING RETAILER is a person who is engaged in
above.
the sale of cigarettes at retail in the state, and who brings, or
causes to be brought, cigarettes into the state.
WHOLESALE PRICE is the established price for which a
manufacturer sells a tobacco product to a distributor after
CIGARETTE DISTRIBUTOR is a person who brings
deduction of a discount or other reduction received by the
cigarettes, or has cigarettes brought into the state, and who sells
distributor for quantity or cash if the manufacturer's established
or distributes at least 75% of the cigarettes to others for resale in
price is adequately supported by bona fide arm's length sales as
the state. Tax is levied when cigarettes are first imported or
determined by the Department. If the price is not adequately
acquired in the state.
supported by bona fide arm's length sales, the wholesale price
will be determined by the Department.
MANUFACTURER is a person who makes, fashions, or
produces cigarettes for sale to distributors or other persons.
Payment
The Department of Revenue offers online electronic funds
VENDING MACHINE OPERATOR is a person who imports
transfer through the Tax Online Payment System (TOPS). This
or acquires cigarettes in the state, upon which the tax has not
system does not require any pre-enrollment before using;
been paid, and distributes them through vending machines.
however, you must be an established taxpayer. If you are a first
time taxpayer with the State of Alaska Department of Revenue,
WHOLESALER-DISTRIBUTOR is a person outside of the
please call 907.465.2320. Additional information and access to
state who sells cigarettes into the state and agrees to pay the
TOPS
is
located
on
our
website
at
cigarette and tobacco products tax imposed under AS 43.50.
https://
TOBACCO PRODUCTS DISTRIBUTOR is a person who
Where to Send Form 04-520
brings, or causes to be brought, a tobacco product into the
Form 04-520 must be mailed or delivered to the Department of
state from outside the state for sale; makes, manufactures, or
Revenue, Tax Division, 550 W. 7th Avenue, Suite 500,
fabricates a tobacco product in the state for sale in the state; or
Anchorage, AK 99501.
ships, or transports a tobacco product to a retailer in the state for
sale by the retailer. If you import cigarettes as well as tobacco
Questions
products, you only need to apply for the appropriate cigarette
If you have questions, please contact the Tax Division at
license.
907.269.6620.
Form 04-520 Instructions (Rev 05/05)
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