Cigarette Tax

The Cigarette Tax is a tax of two hundred twelve and one half (212.5) mills per cigarette imposed on each cigarette and on each sheet of cigarette rolling paper sold or held for sale within Rhode Island ($4.25 per package of twenty). Payment of the tax is evidenced by affixing the tax indicia to the bottom of the package. Distributors purchase indicia stamps at a discount to compensate them for stamping the packages.

Frequently Asked Questions

Who must collect, file and pay the Cigarette Tax?

The Cigarette Tax is imposed on all cigarettes sold or held for sale in the state. The Cigarette Tax is paid upon purchasing the "cigarette stamps".

What type of cigarette licenses available? What are the registration requirements and fees?

Distributors licenses:

Affixing Distributors License:

To register for an Affixing Distributors License, a business must apply using form CIG-App http://www.tax.ri.gov/forms/2013/Excise/Cigarette/Dist%20App%20-%20Cig_h.pdf license renewable every year.

Renewal application and payment are due by May 1^st each year in order to renew the license for the fiscal year beginning June 1st.

Annual fee: $1,000.00

Non-affixing Distributors License:

To register for a Non-Affixing Distributors License, a business must apply using form CIG-App http://www.tax.ri.gov/forms/2013/Excise/Cigarette/Dist%20App%20-%20Cig_h.pdf license renewable every year.

Renewal application and payment are due by May 1^st each year in order to renew the license for the fiscal year beginning June 1st.

Annual fee: $100.00

Distributor Vending License:

To register for a Distributor Vending License, a business must apply using form CIG-App http://www.tax.ri.gov/forms/2013/Excise/Cigarette/Dist%20App%20-%20Cig_h.pdf license renewable every year.

Renewal application and payment are due by May 1^st each year in order to renew the license for the fiscal year beginning June 1st.

Annual fee: $25.00

Dealers License:

To register for a dealer’s Cigarette Tax permit, a business must file the Business Application and Registration form http://www.tax.ri.gov/forms/2019/Excise/BAR_082019.PDF. The business must register for a Sales Tax account in addition to the Cigarette Tax account and will receive a sales tax permit and a cigarette tax permit.

The Cigarette Tax license must be renewed every year by using renewal form CDR-1 - CIGREN. Pursuant to R.I. Gen. Laws § 44-20-5 the renewal application must be filed with payment by February 1st each year in order to renew the license for the fiscal year beginning July 1st.

Annual fee: $25.00

How often must the Cigarette Tax be filed and/or paid?

Section 44-20-5 of the Rhode Island General Laws requires that all cigarette dealer licenses be renewed annually at a cost of $25.00. The law states that the renewal application must be filed by February 1st each year, renewing the license for the fiscal year beginning July 1st.

If you do not intend to be in business after July 1, 2021, or have already ceased doing business, please check the box on the License Renewal form indicating the date you stopped selling cigarettes and return the license to the Division of Taxation.

If you intend to be in business after July 1, 2021, your license must be renewed. Return the License Renewal form along with a check for $25.00 to the Division of Taxation.

Chapter 76 of Title 5 and Chapter 3 of Title 31 of the Rhode Island General Laws as amended provide that a business may not renew a license or permit to conduct a business unless all of its state taxes are paid or it has entered into a written time payment agreement, satisfactory to the Tax Administrator, to pay all outstanding state taxes. Therefore, if you wish to renew your cigarette dealer license, but you are not in good standing with regard to your state taxes, you should contact Collections at (401) 574-8941 Monday through Friday between the hours of 8:30 am and 3:30 pm to resolve this issue.

How is the Cigarette Tax collected and remitted?

Traditionally, Affixing Distributors purchase “cigarette stamps” directly from the RI Division of Taxation. Cigarette tax and prepaid sales tax are required to be paid by the distributor at the time of purchasing the stamps. Licensed distributors initiate the order by filing one of the following requisition forms:

Form T-11 is used for packs of cigarettes stamps.

Form T-11A is used for packs of rolling papers.

Any other license holder must purchase stamped cigarettes from a licensed distributor.

In the rare case of any consumer, individual, business, corporation or other entity having in his or her possession any unstamped cigarettes, the consumer, individual, business, corporation or other entity shall, within twenty-four (24) hours after coming into possession of the unstamped cigarettes in this state, file Form T-205C with the RI Division of Taxation and pay the tax due.

Please visit our Sales & Excise Forms page for the latest version of these forms.