Cigarette and Other Tobacco Products Excise Tax Increase FAQ

What is the new tax rate and when is it effective?

Effective July 1, 2016 the Cigarette Tax will increase from 55 cents to $1.20 per pack (20 cigarettes) and Other Tobacco Products tax will increase from 7% of the wholesale price to 12% of the wholesale price.

Can I still buy stamps at the lower rate prior to July 1, 2016?

Yes. However, due to the change in rate and inability to ensure delivery of stamps prior to the effective date of the new rate, the Department will cease accepting orders after June 27, 2016. The Department will resume accepting orders on July 1, 2016 at the new rate.

What about returns and refunds?

Applications for refund or credit for WV stamped packages that are returned to the manufacturer must include the bill of lading, as well as the manufacturer affidavit. Returns to the manufacturer prior to July 1, 2016, will be considered WV tax paid at the rates of $0.55 per package of 20 and $0.6875 per package of 25. Returns to the manufacturer on or after July 1, 2016, will be considered WV tax paid at the rates of $1.20 per package of 20 and $1.50 per package of 25.

Is there a floor stock tax?

Yes. Whenever there is a cigarette tax rate increase, a floor stock tax is charged to all wholesale dealers and retailers who possess stamped cigarettes held for resale on which the cigarette tax was paid at the prior rate and upon unaffixed stamps in the possession of distributors on the date of increase.

Additionally, there is a floor stock tax charged on all Other Tobacco Products on hand on which the tax was paid at the prior rate.

What is the rate of the floor stock tax?

For cigarettes, the rate of the floor stock tax is 65 cents for each 20 cigarette pack and for each 20 cigarette stamp and 81.25 cents for each 25 cigarette pack and each 25 cigarette stamp.

For Other Tobacco Products, the rate of the floor stock tax is 5% of the wholesale price of any stock on hand.

When do we determine what products are in possession that are subject to the floor stock tax?

Any products in the possession of wholesalers, sub-jobber dealers, vending machine operators or retailers on July 1, 2016 are subject to the floor stock tax.

What form do we file to remit the floor stock tax?

Wholesalers, sub-jobber dealers, and vending machine operators must file a TPT-701 West Virginia Wholesaler - Cigarette/OTP Floor Stock Return on or before August 30, 2016 detailing all inventory on hand on July 1, 2016 and remitting the tax on that date.

Retailers must file a TPT-705 West Virginia Retailer - Cigarette/OTP Floor Stock Return on or before August 30, 2016 detailing all inventory on hand on July 1, 2016 and remitting the tax on that date.

The Department is currently working on these forms and they will be made available prior to August 1, 2016 (the first day a taxpayer will be able to file the return). The form will be available on the Department’s website as soon as possible on the Tobacco Products page.

As soon as the new form is available to print, a taxpayer may register and file their return through our online portal located at https://mytaxes.wvtax.gov/.

Do I need to do anything else?

The new rate is effective July 1, 2016. You will still be required to file any return or report normally due. However, due to the short timeframe, the Department is currently working on updated tax forms. These forms will be made available prior to August 1, 2016 (the first day a taxpayer will be able to file the return). The form will be available on the Department’s website as soon as possible on the Tobacco Products page.

As soon as the new form is available to print, a taxpayer may file their return through our online portal located at https://mytaxes.wvtax.gov/.

What if I have other questions?

For tax information and assistance you can always reach us at (304) 558-3333 or (800) 982-8297. Your call will be taken in the order in which it was received.

You can also email us at TaxHelp@WV.Gov.