Tobacco Tax Basics Guide

Tobacco tax is imposed on all tobacco products except cigarettes, whether smoked, chewed, or snuffed.

Every distributor, subjobber of tobacco products, and delivery seller must have a tobacco tax permit and file monthly tobacco tax returns. When a tobacco retailer purchases tobacco products from a distributor that doesn’t charge Idaho tax, that retailer is considered a distributor for Idaho tax purposes.

Complying with the federal PACT Act

If you sell cigarettes and smokeless tobacco products, you must follow the Prevent All Cigarette Trafficking (PACT) Act. This federal law went into effect July 1, 2010, and requires you to register with Idaho, submit monthly reports, and meet certain requirements.

Learn more about the PACT Act 

Tobacco regulation, tax collection, and enforcement

  • The Idaho State Tax Commission collects and enforces cigarette and tobacco taxes. 
  • The Idaho Attorney General’s Office ensures that tobacco manufacturers comply with Idaho’s Master Settlement Agreement (MSA) Act and MSA Complementary Act. 
  • The Idaho Department of Health and Welfare regulates retail sales of tobacco products. 
  • The State Fire Marshal manages Idaho’s Fire Standard Compliant (FSC) cigarette program. 
  • The U.S. Department of the Treasury, the U.S. Food and Drug Administration, the U.S. Attorney General, and many tribal governments also regulate tobacco in Idaho.