Print This Section

Cigarette and Tobacco Tax (TOB)

TOB - 1	What’s the difference between cigarette tax and taxes on other tobacco products? Cigarette tax applies only to cigarettes, which are defined by the wrapping material. If the wrapper is made of mostly paper or a material other than tobacco, it is considered a cigarette for tax purposes. Tobacco tax, which is taxed at a different rate, is imposed on all other tobacco products, whether smoked, chewed, or snuffed. Contact us if you need more information. Return to Questions
TOB - 2	What is Idaho's cigarette tax rate? Cigarettes come in different sized packs, so the tax is based on the single cigarette or stick. The current cigarette tax rate is .0285 cents per stick. Therefore, the tax is 57 cents for a standard pack of 20 cigarettes. Contact us if you need more information. Return to Questions
TOB - 3	What is Idaho's tobacco tax rate? The tobacco tax rate is 40 percent of the wholesale sales price of the tobacco. Contact us if you need more information. Return to Questions
TOB - 4	Who is required to have an Idaho Cigarette Tax Permit? Any business that sells cigarettes at wholesale in Idaho must have a cigarette tax permit and file monthly cigarette tax returns. Contact us if you need more information. Return to Questions
TOB - 5	Who must have an Idaho Tobacco Tax Permit? Every distributor or subjobber of tobacco products must have a tobacco tax permit and file monthly tobacco tax returns. When a tobacco retailer purchases tobacco products from a wholesaler that does not charge Idaho tax, that retailer is considered a distributor for Idaho tax purposes. Contact us if you need more information. Return to Questions
TOB - 6	How do I apply for a cigarette or tobacco tax permit? Use Form CIG to apply for an Idaho Cigarette Tax Permit or an Idaho Tobacco Tax Permit. Neither permit is transferable. If you have questions about cigarette or tobacco tax, call Taxpayer Services at (208) 334-7660 in the Boise area or (800) 972-7660 toll free. You can download Form CIG and mail the application to the Idaho State Tax Commission, Attn: Account Registration, PO Box 36, Boise ID 83722-3220 or fax it to (208) 334-5364. You should receive your permit within four weeks. Contact us if you need more information. Return to Questions
TOB - 7	Who regulates cigarettes and tobacco in Idaho? The Tax Commission collects and enforces cigarette and tobacco taxes. The Attorney General’s Office ensures that tobacco manufacturers comply with Idaho’s Master Settlement Agreement (MSA) Act and MSA Complementary Act. The Department of Health and Welfare regulates retail sales of tobacco products. The State Fire Marshall manages Idaho's Fire Standard Compliant (FSC) cigarette program. United States Department of the Treasury and many tribal governments also regulate tobacco in Idaho. Contact us if you need more information. Return to Questions
TOB - 8	How can I make sure the brand of cigarettes I smoke or that my business sells are legal? The Attorney General’s Office (AG) keeps a list of all cigarettes and roll-your-own tobacco that comply with Idaho’s MSA and MSA Complementary Acts. You can get this list, called the Idaho Directory of Compliant Tobacco Product Manufacturers and Brand Families (Directory), from the AG’s Web site. The AG sends e-mail (or US mail) notifications of changes to the Directory and provides 10 days advance notice before removing brands from the Directory. If you would like to be on the distribution list for updates, please call the AG’s Office at (208) 332-3097 to register your e-mail (or street) address. Contact us if you need more information. Return to Questions
TOB - 9	What makes some cigarettes illegal? There are three ways cigarettes can be classified as illegal in Idaho: Unlisted Product - The brand isn’t listed on, or has been removed from, the Directory maintained by the Attorney General’s Office. No Idaho Tax Stamp - The Idaho tax stamp indicates that the correct cigarette tax was paid. In general, if you have more than 10 packs of cigarettes that don’t bear an Idaho tax stamp, the cigarettes may be seized. Some exceptions apply if you’re an enrolled member of a federally recognized tribe living on a reservation. Counterfeit Cigarettes - There are cigarettes that appear to be the product of a well-known manufacturer but are actually imitations. Contact us if you need more information. Return to Questions
TOB - 10	Is it legal to buy cigarettes over the Internet? Cigarettes bought over the Internet, over the phone, or from mail-order catalogs generally don’t have Idaho tax stamps on the bottom of the packages and are considered unstamped. The penalty for having, buying, or using more than 10 packs of unstamped cigarettes is three times the cigarette tax due for each full or partial pack. The minimum penalty is $50. When you buy cigarettes over the Internet, over the phone, or from mail-order catalogs, you're generally not charged Idaho sales tax. In that case, you owe Idaho use tax. Use tax is a tax on the purchase of goods that you put to use or store in Idaho. To pay the use tax, fill out Form 850-U. Contact us if you need more information. Return to Questions
TOB - 11	Is it legal to buy tobacco products, other than cigarettes, over the Internet? Yes. However, when you buy tobacco products over the Internet, over the phone, or from mail-order catalogs, you are generally not charged Idaho tax. In that case, you owe both use tax and tobacco tax. Use tax is a tax on the purchase of goods that you put to use or store in Idaho. If you haven't paid sales tax on these goods, you owe use tax. To pay the tobacco tax, fill out Form 1350-U. To pay the use tax, fill out Form 850-U. Contact us if you need more information. Return to Questions
TOB - 12	What happens if I have illegal cigarettes? The state of Idaho has the authority to seize illegal cigarettes. However, the Tax Commission understands it can be difficult to keep up with the requirements of all agencies that regulate cigarettes and other tobacco products in Idaho. If you violate the law, we will make every effort to work with you to resolve your issue. In many cases, you can voluntarily turn over illegal cigarettes to the Tax Commission with little or no consequence. Contact us if you need more information. Return to Questions