If you sell cigarettes, smokeless tobacco products, or ENDS, you must follow the Prevent All Cigarette Trafficking (PACT) Act. The Act is a federal law that went into effect July 1, 2010.
Federal definition of cigarette
According to 18 U.S.C. 2341, 26 U.S.C. 5702 and 15 U.S.C. 375, cigarettes include:
- Any roll of tobacco wrapped in paper or in any substance not containing tobacco.
- Any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling is likely to be offered to, or purchased by, consumers as a cigarette as described in the bullet above.
- Roll-your-own tobacco.
- Any Electronic Nicotine Delivery System (ENDS). An ENDS is any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device. ENDS include:
- Vape pens
- Advanced refillable personal vaporizers
- Electronic pipes
- Any component, liquid, part, or accessory of a device described above, regardless if sold separately from the device
- ENDS don’t include any products approved by the Food and Drug Administration for sale as a tobacco cessation product or any other therapeutic purpose and marketed and sold solely for this purpose.
Definition of delivery seller
A delivery seller makes delivery sales. Delivery sales are sales of cigarettes, smokeless tobacco, or ENDS made to a consumer when:
- The consumer typically submits an order by telephone, the mail, the internet, or isn’t otherwise physically present when the purchase is made, or
- The cigarettes, smokeless tobacco, or ENDS is delivered by common carrier or other delivery service, or
- The seller isn’t in the physical presence of the buyer when the buyer takes possession of the product.
The Act generally prohibits mailing cigarettes, smokeless tobacco, and ENDS through the U.S. Postal Service and requires those selling cigarettes, smokeless tobacco products, or ENDS into Idaho to:
- Register with and make monthly reports to the Idaho State Tax Commission.
- Pay all federal, state, and tribal tobacco taxes and affix cigarette tax stamps before delivering any products to any unlicensed customer, or acquire Idaho tax-paid product from an Idaho licensed cigarette wholesaler or tobacco distributor.
- Check the age and ID of customers at the time of purchase and when the tobacco products are delivered.
Registering with Idaho
If you operate a business for profit that sells, transfers, or ships cigarettes, smokeless tobacco, or ENDS for interstate commerce into Idaho, or advertises these products for sale in Idaho, you must file a statement that includes the business names, addresses, telephone numbers, email addresses, website addresses, and the name, address, and phone number of an agent authorized to accept service.
Use Form CIG to register your business to comply with the PACT Act. You must also attach either a copy of your completed federal PACT Act Registration (ATF Form 5070.1) or a written statement that includes the information listed in the paragraph above.
If you’re a delivery seller, you must apply for an Idaho cigarette tax permit and/or an Idaho tobacco tax permit if you plan to sell cigarettes (or smokeless tobacco) in Idaho. Use Form CIG to apply for an Idaho cigarette tax permit or an Idaho tobacco tax permit.
You can download Form CIG and mail the application to the Idaho State Tax Commission, Attn: Permit Accounting Services, PO Box 36, Boise ID 83722-3220 or fax it to (208) 334-7650. You should receive your permit within four weeks.
- Form CIG – Cigarette and Tobacco Products Taxes Permit Application
- You can download Form CIG and mail the application to the Idaho State Tax Commission, Attn: Permit Accounting Services, PO Box 36, Boise ID 83722-3220 or fax it to (208) 334-7650. You should receive your permit within four weeks.
- ATF Form 5070.1, Prevent All Cigarette Trafficking (PACT) Act Registration, Bureau of Alcohol, Tobacco, Firearms, and Explosives
- Sample Forms for PACT Act Reports – you can create your own forms with the necessary information
The PACT Act requires monthly reports to Idaho due by the 10th day of each month, while Idaho cigarette and tobacco tax returns are due by the 20th of each month. The Tax Commission encourages you to combine reports and file only once.
You can file your Idaho cigarette tax return and Idaho tobacco tax return by the 10th day of each month to comply with the PACT Act. However, you must also include an addendum or internal report that lists the brand of cigarettes or smokeless tobacco you’re selling. If you’re a delivery seller, please include the name, address, and phone number of your delivery service.
You still have the option of paying any tax you owe on or before the 20th. If you need a payment voucher, call Taxpayer Services at (208) 334-7660 in the Boise area or toll free at (800) 972-7660.