Instructions for Completing Form 4096B,
Michigan Tobacco Products Tax Return
This form is provided to report and pay the applicable Michigan tobacco taxes on purchases of cigarettes and Other Tobacco
Products (OTP) by Michigan residents from the Internet or Mail Order providers. OTP includes cigars, chewing tobacco, pipe
tobacco, loose tobacco (roll your own) and snuff. Please refer to the Consumer Warning on page 2 of these instructions.
The reporting form is separated into four parts:
(1) The first three parts are used to report cigarettes by various packaging configurations of 20-Cigarette Packs, 25-Cigarette
Packs, and Other Quantities of Cigarettes (packs that contain less than 20 cigarettes are reported per cigarette).
(2) The fourth part is to report Other Tobacco Products.
Use Form 4096A to report cigarettes and OTP purchased during the period August 1, 2002 through
June 30, 2004.
Tax Rates: Effective July 1, 2004:
Cigarettes are taxed at the rate of 10 cents (.10) per cigarette
$2.00 per pack of 20 cigarettes
$2.50 per pack of 25 cigarettes
OTP is taxed at 32% of the wholesale price. (See Note 1)
Note 1: Determine wholesale price for OTP by multiplying the retail price paid for the OTP (less
shipping and handling) by 50%. Example: Taxpayer A pays $20.00 (retail) for chewing
tobacco. Wholesale price is $10.00 ($20.00 x 50%)
Use Tax
Michigan Use Tax is also due on tobacco products purchased from Internet or Mail Order vendors. Use tax is calculated at 6%
(.06) of the total purchase price, including shipping and handling. The use tax is to be reported on the taxpayer’s annual Individual
Income Tax Return (MI-1040).
Remittance
Make your check payable to the “State of Michigan”. Forward your completed return with payment to the Discovery and Tax
Enforcement Division, at the address identified on the form.
Form 4096B Lines by Line Instructions:
Enter purchaser’s name, address, city, state, zip and social security number on the lines provided.
Part 1 - 20-Cigarette Packs
Column A – Enter date of purchase.
Column B – Enter name of the tobacco vendor.
Column C – Convert cartons to packs and enter total packs. A carton of 20-Cigarette Packs contains 10 packs of cigarettes.
Column D – Multiply Column C times the tax rate ($2.00 per pack) and enter total.
Part 2 - 25 – Cigarette Packs
Column A – Enter date of purchase.
Column B – Enter name of the tobacco vendor.
Column C – Convert cartons to packs and enter total packs. A carton of 25-Cigarette Packs contains 10 packs of cigarettes.
Column D – Multiply Column C times the tax rate ($2.50 per pack) and enter total.
Part 3 - Other Quantities of Cigarettes
Column A – Enter date of purchase.
Column B – Enter name of the tobacco vendor.
Column C – Convert packs with less than 20 cigarettes to individual cigarettes and enter total cigarettes.
Column D – Multiply Column C times the tax rate ($0.10 per cigarette) and enter total.
Part 4 – OTP
Column A – Enter date of purchase.
Column B – Enter name of the tobacco vendor.
Column C – Multiply the retail purchase price of the OTP (less shipping and handling) by 50% (to determine the approximate
wholesale price) and enter total.