Form Ctp-129 - Application For Cigarette And Tobacco Products Permits/registration (Page 8 of 8) in pdf

2. Salesperson’s permit application, Form CTP-134, and $20 Business

Lost or Stolen Stamps – Distributors are liable for the tax and ship-

Tax Registration fee for each salesperson who solicits orders in

ping and printing costs on all lost or stolen stamps. All stamp orders

Wisconsin.

are shipped FOB origin from the Wisconsin Department of Revenue

to distributors at their permitted business location. The department

3. Cigarette distributors - Letter of Direct Buy for each cigarette

ships stamps based on the delivery method indicated by the distributor.

manufacturer from which you will purchase.

VIII. THE TOBACCO PRODUCTS TAX

4. Security guaranteeing payment for the cigarette and tobacco prod-

ucts tax.

Tobacco products include cigars, cheroots, plug snuff, chewing

tobacco, clippings, and other forms of tobacco prepared in a man-

5. Cigarette vendor applicants - Form CTP-124.

ner suitable for chewing or smoking in a pipe or otherwise. Tobacco

products do not include cigarettes.

6. Cigarette multiple retailer applicants - Form CTP-125.

The tobacco products tax rate is 71% of the manufacturer’s established

V. SECURITY

list price prior to any reductions for volume or other discounts on all

The department may require applicants who qualify for a distributor’s

tobacco products except moist snuff and cigars. The tax on tobacco

permit to have security on file before issuing their permit. Security

products imported from another country is 71% of the amount obtained

may be in the form of a bond, certificates of deposit, or cash. A permit

by adding the manufacturer’s list price to the federal tax, duties, and

will not be issued until the security is received, if required.

transportation costs to the United States on all tobacco products,

except moist snuff and cigars. The moist snuff tax rate is 100% of

Cigarette Distributor – New applicants are requested to post a

the manufacturer’s established list price prior to any reductions for

minimum of $10,000 plus an amount equal to three times their esti-

volume or other discounts.

mated monthly tax stamp purchases. Upon receipt of the security, the

department will sell stamps on credit up to one third of that amount.

The tobacco products tax on cigars is the lesser of:

Tobacco Products Distributors – New applicants must post $3,000

1. 71% of the manufacturer’s established list price to distributors

security for tobacco products tax.

(prior to any reduction for volume or other discount); OR

Caution: Distributors who do not timely file the monthly returns and/

2. $0.50 per single cigar.

or timely pay tax due may be required to file security in an amount

determined by the department.

The tobacco products tax is not imposed on nontobacco items (for

example, papers, pipes, or lighters) or cigarettes.

VI. LETTERS OF DIRECT BUY

The tax is paid by Wisconsin distributors on all tobacco products

Prior to affixing Wisconsin tax stamps to cigarette packages, distribu-

received from out-of-state. The tax is paid by out-of-state distribu-

tors must submit to the department for approval a Letter of Direct Buy

tors on tobacco products sold to retailers/non-licensed distributors in

(LDB) from each manufacturer whose cigarettes they will sell/ship into

Wisconsin. Both in-state and out-of-state distributors file a monthly

Wisconsin. No cigarettes may be sold/shipped into Wisconsin without

tax return due on or before the 15th day after the month in which the

department approval. The LDB must include the following information:

transactions occur.

1. Statement from the manufacturer or first importer into the United

IX. PAYMENT OF TAXES

States of the cigarettes that the distributor is authorized for direct

buy and to sell their cigarettes within Wisconsin.

Cigarette and tobacco products taxes must be paid to the department

by Electronic Funds Transfer (EFT) if a distributor’s annual cigarette

2. Point of origin of the cigarettes.

or tobacco products tax payment is over $1,000. For information on

EFT, go to

3. List of brands that can be sold.

If paid by check, make check payable to Wisconsin Department of

4. The manufacturer’s cigarette manufacturer and/or importer permit

Revenue. Be sure to include your account number on the check.

number issued by the federal government.

X. ASSISTANCE

5. If first importer of record, the name and address of the manufacturer

of the cigarettes.

You can access the department’s website 24 hours a day, seven days

a week, at From this website, you can:

6. Manufacturer’s price list.

• Access My Tax Account

• Complete electronic fill-in forms

7. Statement indicating whether or not the manufacturer is a partici-

• Download forms, schedules, instructions, and publications

pating member of the Master Settlement Agreement (MSA).

• View answers to commonly asked questions

• E-mail us for assistance

VII. THE CIGARETTE TAX

Cigarettes are rolls of tobacco wrapped in paper or any substance

other than tobacco per sec. 139.30(1m), Wis. Stats.

Madison Office Location

Mailing Address

2135 Rimrock Road

Excise Tax Section 6-107

The cigarette tax is paid by cigarette distributors who are required to

Madison WI 53713

Wisconsin Department of Revenue

purchase tax stamps from the department, which are applied to each

PO Box 8900

pack of cigarettes. Stamps are generally purchased on credit and

Phone: (608) 261-6435

Madison WI 53708-8900

payment is submitted by distributors along with their monthly ciga-

Fax: (608) 261-7049

rette tax returns on or before the 15th day after the month in which

E-mail: excise@revenue.wi.gov

the stamps are received. Distributors calculate the amount due by

adding the net tax (gross tax less stamping discount) to the printing

and shipping costs.

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Form Ctp-129 - Application For Cigarette And Tobacco Products Permits/registration Page 8

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