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Instructions for Alaska Cigarette and Tobacco

Products Monthly Tax Return

When shipping cigarettes, the package containing the cigarettes must be

Line 9 - Other credits. You are allowed a credit for tobacco products

clearly marked with the word “cigarettes.”

returned to the manufacturer or destroyed provided the product is included

in line 6 of this return or a previous month’s return. See Schedule G for

Penalties, including a $5,000 civil fine per shipment, may be assessed

further instructions regarding this credit.

by the Department of Revenue for violations of the cigarette shipping

restrictions.

Line 12 - You are allowed a commission of .4 percent (.004) to help cover

Specific Instructions

the expense of tobacco products tax collection. You are only entitled to

this commission if you file your tax return and pay the tobacco products

tax within the time prescribed by law. Multiply line 11 by .4 percent (.004)

Schedule A - Payment Due for Cigarette Tax Stamps

and enter here.

Line 1 - The Alaska cigarette excise tax must be paid through the use of

cigarette tax stamps. Cigarette tax stamps are required to be affixed to

Line 15 - If this is an amended return, enter the amount of cigarette

packages of cigarettes before sale or distribution in the state. Use Form

620, Cigarette Tax Stamp Order Form, to purchase cigarette tax stamps.

and tobacco products excise tax paid for the month as reported on your

original return. Otherwise enter zero.

Enter the total dollar amount of cigarette tax stamps you purchased

during the month from line 7, column (b) of Schedule E here. This is your

Line 16 - Subtract line 15 from line 14 and enter here. This is the amount

cigarette tax liability before the stamp discount and credit for unused,

returned and/or destroyed stamps.

of cigarette and tobacco products excise tax due or overpaid with the

return. If tax is due, it must be remitted by the due date of the return to

avoid a late payment penalty. If tax is overpaid, we will issue a refund.

Line 2 - Licensees may be entitled to a discount on stamp purchases

made during the month. Calculate the stamp discount available to you

for the purchases you made during the month on Schedule H (Unaffiliated

Schedule C - Alaska Report of Out-of-State Sales of

Licensees) or Schedule I (Affiliated Licensees). Complete only Schedule

Cigarettes

H or I, not both. Enter the discount here. See additional instructions for

Effective January 1, 2005, Alaska cigarette licensees may maintain

Schedules H and I within this booklet.

unstamped cigarette inventories in Alaska if their business includes

sales to customers outside of Alaska. The licensee may also claim a

Line 3 - Licensees may be entitled to a credit for unused cigarette tax

credit for cigarettes affixed with an Alaska tax stamp if the cigarettes are

stamps returned to the Department and stamps affixed to packs of

subsequently sold outside of Alaska. To maintain unstamped cigarette

cigarettes that were returned to the manufacturer or destroyed during the

inventories and claim a credit for stamped cigarettes, the licensee must

month. Calculate the credit available to you on Schedule J. Enter the

be licensed in the state where the cigarettes are shipped if that state

credit here. See additional instructions for Schedule J within this booklet.

requires a license and the licensee must comply will all applicable federal

and state laws and regulations. You must complete a separate Schedule

Line 4 - Payment for cigarette tax stamps is due at the time the stamps

C for each state in which cigarettes are sold. You must also indicate

are ordered unless you have been approved to purchase cigarette tax

whether you are licensed in the state where the cigarettes are shipped

stamps on a deferred payment plan. You may request to pay under a

and provide your license number issued by that state.

deferred payment plan by posting a bond and completing Form 623,

Application to Purchase Cigarette Tax Stamps on Deferred Payment

Column 1 - Provide the date the cigarettes were shipped out of Alaska.

Basis. Enter the total dollar amount you paid during the month for

the purchase of cigarette tax stamps reported on line 7, column (c) of

Schedule E here. If you have been approved for a deferred payment plan

Column 2 - Provide the method of shipping used.

DT (distributor

transport) if the cigarettes were transported using a truck, boat, or

and did not make any payments for cigarette tax stamps at the time of

other form of transportation owned by you. CC (common carrier) if

purchase, enter zero here.

the cigarettes were transported using a common carrier, i.e. US Postal

Service, FedEx, UPS, etc. CT (customer transport) if the cigarettes were

Line 5 - Subtract lines 2, 3, and 4 from line 1. This is the amount of

transported using a truck, boat, or other form of transportation owned by

cigarette tax due/(overpaid) with the return. If you have an overpayment,

your customer.

it will first be used to reduce your monthly tobacco products excise tax

due with the return as reported on Schedule B. Any remaining amount

Columns 3 and 4 - Provide the invoice number, name and address of the

will be refunded to you.

customer receiving the cigarettes for each transaction.

Schedule B - Tobacco Products Excise Tax Liability

Columns 5, 6, and 7 - Provide the total number of packs sold in 20 and

and Total Amount Due

25 denominations and the total number of cigarettes for each transaction.

Line 6 - Enter the wholesale price of tobacco products manufactured,

imported, acquired and/or sold during the month from Schedule G here.

Column 8 - Indicate whether you paid the taxes to the state where the

See additional instructions for completing Schedule G within this booklet.

cigarettes were shipped.

Line 7 - Credit for military sales. You are allowed a credit for tobacco

Column 9 - Indicate whether the cigarettes shipped out of state were

affixed with an Alaska tax stamp. Use Schedule J to claim the credit on

products sold directly to a military exchange, commissary or ship store

that are for the sole use of authorized military personnel. Credits claimed

these cigarettes.

for military sales must be reported on Schedule G and substantiated with

copies of original invoices.

Schedule D-1 - Cigarette Tax Stamp Inventory (For

Tax Stamps Purchased at the Current Tax Rate of $.10

Line 8 - Credit for Indian sales. You are allowed a credit for tobacco

per Cigarette)

products sold directly to an Indian operating a tobacco business within

All licensees must complete Schedule D-1 to report the number of

an Indian reservation of which the Indian is a member. Please note:

cigarette tax stamps you purchased, affixed to cigarette packages,

Only Metlakatla and Klawock Indian communities are Indian tribal

returned to the department, and have on hand at the end of the month.

organizations authorized to possess untaxed, unstamped cigarettes. See

Use Schedule D-1 to report your inventory of white and brown stamps

Schedule G for further instructions regarding this credit.

purchased at the new tax rate of $.10 per cigarette for PM cigarettes

and yellow NPM stamps purchased at the rate of $.1125 per cigarette.

PM cigarettes are cigarettes manufactured by those companies that

0405-522i - Rev 09/12 - page 2

Instructions For Form 522 - Alaska Cigarette And Tobacco Products Monthly Tax Return Page 2

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