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What are the definitions of "tobacco products," "cigar," "moist snuff," "pipe tobacco," "person," "permittee," "distributor," "retailer" and "subjobber?"
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Tobacco products - Wisconsin law defines tobacco products as cigars, cheroots, granulated, plug cuts, snuff, chewing tobacco, clippings, and other forms of tobacco prepared in such a manner as to be suitable for chewing or smoking in a pipe or otherwise. The definition includes tobacco that can be used for "roll your own" cigarettes, but it does not include cigarettes. [sec. 139.75(12), Wis. Stats.].
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Cigar - Any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco but does not include a cigarette.
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Moist snuff - Any finely cut, ground, or powdered smokeless tobacco that is intended to be placed or dipped in the mouth. [sec. 139.75(5d), Wis. Stats.].
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Pipe tobacco - Any tobacco that, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to or purchased by consumers as tobacco to be smoked in a pipe.
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Person - Includes any individual, sole proprietorship, partnership, limited liability company, corporation, or association. A single-owner entity that is disregarded as a separate entity under ch. 71 is disregarded as a separate entity for purposes of this subchapter. [sec. 139.75(5p), Wis. Stats.].
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Permittee - A person who holds a tobacco products permit issued by the Wisconsin Department of Revenue (DOR).
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Distributor -
- Any person engaged in the business of selling tobacco products in this state who brings, or causes to be brought, into this state from outside the state any tobacco products for sale;
- Any person who makes, manufacturers or fabricates tobacco products in this state for sale in this state; or
- Any person engaged in the business of selling tobacco products outside this state who ships or transports tobacco products to retailers in this state to be sold by those retailers. [sec. 139.75(4), Wis. Stats.]
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Retailer - Any person engaged in the business of selling tobacco products to ultimate consumers. [sec. 139.75(8), Wis. Stats.].
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Subjobber - Any person, other than a manufacturer or distributor, who buys tobacco products from a distributor and sells them to persons other than the ultimate consumers. [sec. 139.75(11), Wis. Stats.].
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What is the tax rate on tobacco products?
| Tax Type | Tax Rate |
|---|
| Tobacco products | 71% of manufacturer's established list price to distributors |
| Moist snuff | 100% of manufacturer's established list price to distributors |
| Cigars | Lesser of 71% of the actual cost to distributors or remote retail sellers, or $0.50 per cigar, whichever is lower |
| Pipe tobacco | 71% of the actual cost to distributors or remote retail sellers |
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Do I need a permit to handle tobacco products?
Yes. If one of the following applies, you must have a permit from the Department of Revenue (DOR) to handle tobacco products:
- You handle tobacco products at the wholesale level in Wisconsin as a distributor or subjobber
- You are a retailer who purchases tobacco products from sources outside Wisconsin that do not hold a Wisconsin distributor permit
- You make remote retail sales of cigars or pipe tobacco to consumers in Wisconsin (see question below).
Apply with DOR by submitting Form
CTV-200,
Application for Cigarette, Tobacco, and Vapor Products Permits, or Form
CTP-134,
Cigarette, Tobacco and/or Vapor Products Salesperson's Permit Application. Include all required forms with your application.
Note: If you apply for a tobacco products permit, you must also hold a Business Tax Registration (BTR) Certificate [sec. 73.03(50), Wis. Stats.].
BTR Certificate
- There is a $20 registration fee for the BTR Certificate
- The certificate is renewable every two years for $10
Note: The BTR certificate and tobacco products permits are valid until canceled by the permittee or until revoked by the department. You only need one BTR certificate regardless of the number of permits or licenses you hold with DOR.
DOR issues these
wholesale tobacco products permits
| Types of Wholesale Permits / (Account Prefix) | Statute | Fee | Term of Permit |
|---|
| Wisconsin distributor (405) | sec. 139.79 | none | 2 years |
| Wisconsin subjobber (406) | sec. 139.79 | none | 2 years |
| Out-of-state distributor (411) | sec. 139.79 | none | 2 years |
| Wisconsin and out-of-state tobacco products salespersons | sec. 139.81 | none | 2 years |
If you are a Tobacco Products Distributor permittee and purchased tobacco products from an out-of-state wholesaler that does not hold a permit with DOR, we may confiscate the tobacco products possessed and/or offered for sale in this state on which the tobacco products tax is unpaid (after the due date). A Tobacco Products Subjobber permittee is not permitted to possess or purchase untaxed tobacco products from out-of-state sources. Only a Tobacco Products Distributor permittee in Wisconsin may possess, receive, acquire, or purchase untaxed tobacco products. [sec. 139.83, Wis. Stats.].
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Security required
- If you are responsible for paying the tobacco products tax, you must have security (e.g., cash, surety bond) on file with DOR
- The amount of security cannot exceed three times a permittee's average monthly liability for tobacco products tax [sec. 139.84, Wis. Stats.]
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What requirements does a retailer need to meet to sell tobacco products to consumers in the State of Wisconsin?
As a retailer, you must meet the following requirements for
all tobacco products sold to Wisconsin consumers:
You must purchase your tobacco products for sale to Wisconsin consumers from permitted wholesalers (distributors or subjobbers) who sell tobacco products on which the Wisconsin tobacco products excise taxes have been paid and sold to you with the Wisconsin excise tax included (in the purchase/sales price), unless you hold a valid tobacco products distributor permit or remote retail seller permit with DOR to pay the excise taxes on all untaxed tobacco products purchased from sources outside Wisconsin. All purchases of tobacco products from distributors or subjobbers permitted with DOR whose business is located within Wisconsin are required to be sold to you with the Wisconsin excise tax included. Distributors and remote retail sellers are liable for the Wisconsin excise taxes on all out-of-state purchases, including tax-included tobacco products purchased from distributors outside Wisconsin who have failed to pay the excise taxes to the state. Provide a copy of your valid DOR distributor permit to all out-of-state sources and confirm the excise tax status on those purchases prior to purchase. Invoices marked "State and/or local excise taxes are the responsibility of the purchaser/receiver" are untaxed.
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Security required
- If you are responsible for paying the tobacco products tax, you must have security (e.g., cash, surety bond) on file with DOR
- The amount of security cannot exceed three times a permittee's average monthly liability for tobacco products tax [sec. 139.84, Wis. Stats.]
You must hold a valid retail license to sell tobacco products to consumers in Wisconsin (Exception: See questions below for remote retail sellers of cigars and pipe tobacco). Retail licenses are issued by the municipality (city, village or town) for each location where tobacco products are received and stored for sale to consumers. You must contact the clerk for the city, village or town where you want to do business and apply for the tobacco products retail license with the clerk using Form
CTV-100. All tobacco products must be sold as allowed under the license (e.g., over-the-counter or in a vending machine). Vending machine sales are not allowed at any facility or premises except where the retailer ensures that no person younger than 21 years of age is present, or permitted to enter, at any time, according to federal regulations (see 21 CFR 1140.14(b)(3)). No person inside or outside Wisconsin may ship/deliver tobacco products direct to consumers via mail or other delivery services, except permitted remote retail sellers of cigars and pipe tobacco.
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Note: Retailers must obtain a Tobacco Products Distributor permit prior to purchasing untaxed tobacco products. (See Form
CTV-200,
Application for Cigarette, Tobacco, and Vapor Products Permits)
You may not sell/transfer tobacco products to another retailer, wholesaler or location, even if you own the other location, unless you hold a valid tobacco products wholesale (distributor or subjobber) permit with the department. All sales/transfers of tobacco products require a wholesale invoice showing the seller's legal name, "doing business as name", and business address as permitted, as well as the purchaser's legal name, "doing business as name", and business address as permitted or licensed.
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Note: If a retailer holds a tobacco products distributor permit at the same business address as the retail license, all tobacco products purchased (taxed and untaxed) are purchased at wholesale under the distributor permit. As a result, all transfers/disbursements of tobacco products from wholesale require an invoice from the wholesaler to the retailer, even if to the same permitted/licensed address.
You may not sell, or offer or possess for sale cigarettes or roll-your-own (RYO) cigarette tobacco not included on the Attorney General's
Directory of Certified Tobacco Manufacturers and Brands. Only those manufacturer's brands listed on the directory may be advertised, solicited, marketed or sold as cigarettes or RYO. Pursuant to the Tobacco Master Settlement Agreement (MSA) statute, tobacco may not be advertised, solicited, marketed or sold as RYO and little cigars may not be advertised, solicited, marketed or sold as cigarettes or cigarette alternatives,
sec. 995.12(2)(c), Wis. Stats. Any retailer who violates the requirements for the legal sale of cigarettes (or little cigars) or RYO in this state is subject to confiscation of those products and/or criminal charges, and suspension or revocation of their distributor permit.
As a licensed retailer, you are required to purchase your tobacco products for sale to Wisconsin consumers from permitted wholesalers (distributors or jobbers) who sell tobacco products on which the Wisconsin excise taxes have been paid, unless you also hold a Wisconsin tobacco products distributor permit or remote retail seller permit. If the wholesaler is not reimbursed by the retailer for the sale of the tax-included tobacco products, the department may bill the retailer for the portion of tax unpaid to the wholesaler on which they claimed credit from the state. Tobacco products possessed and/or offered for sale to consumers in this state on which the tobacco products tax has not been paid are unlawful property and subject to seizure.
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Who pays the tobacco products tax?
The following permittees pay DOR the tobacco products tax [sec. 139.76(1), Wis. Stats.]:
- Any person in Wisconsin who acquires tobacco products for sale or resale from sources that do not hold a valid distributor or subjobber permit with us
- Any person who manufactures tobacco products in Wisconsin for sale in Wisconsin
- Any person outside Wisconsin who ships tobacco products to persons in Wisconsin who do not hold a valid tobacco products distributor permit with DOR
- Remote Retail Sellers of cigars and pipe tobacco
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What is the tobacco products use tax?
Any person, including consumers, in Wisconsin who acquires tobacco products and the Wisconsin tobacco products tax is due and has not been paid, must file a
(Form TT-104S),
Wisconsin Combined Tobacco and Vapor Products Use Taxes Return. Purchases from sources outside Wisconsin who do not hold a permit with DOR as a Tobacco Products Distributor are untaxed. No person inside or outside Wisconsin is permitted to sell tobacco products direct to consumers via the mail or other delivery service, except permitted remote retail sellers of cigars and pipe tobacco.
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How do I pay the tobacco products tax?
Excise taxes can be paid electronically through My Tax Account. Visit our
Make a Payment page for more information, or contact us at (608) 264-9918.
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How do I file my tobacco products tax return?
Tax returns are required to be filed electronically using one of the following methods:
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My Tax Account, the department's self-service business tax filing system.
- Transmitting an approved XML data file to the department. See the
XML page on the Department website for more information.
Sign up for the Cigarette, Tobacco and Vapor Products Excise Tax E-file
electronic mailing list to receive up-to-date filing information.
Samples of tobacco products tax returns, schedules, and instructions are on the
Cigarette, Tobacco and Vapor Products Forms page.
Note:
Tobacco Master Settlement Agreement (MSA) Reporting requirement for all distributor permittees
All distributors must properly report all transactions of Roll-Your-Own (RYO)
cigarette tobacco, by manufacturer, brand, and ounces
per brand, per invoice to the Wisconsin Department of Revenue on their monthly reporting forms and maintain all records for at least five years.
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When is the tobacco products tax return due?
All returns are due by the 15th day of the month following the month or quarter covered by the return [sec. 139.82(2), Wis. Stats.].
Example: a return for October is due November 15.
If you file a late return, you will be charged:
- Late-filing fee - $10 [sec. 139.82(5), Wis. Stats.]
- Delinquent interest - 1.5% of the amount of tax due with the return per month until paid [sec. 139.85(1), Wis. Stats.]
- Late-filing penalty - 5% of the amount of tax due with the return per month until paid, maximum of 25% [sec. 139.85(2), Wis. Stats.]
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Are any tobacco products exempt from the tobacco products tax?
Yes. The following are exempt from the Wisconsin tobacco products tax [sec. 139.76(2), Wis. Stats.]:
- Tobacco products shipped by interstate commerce to customers in other states for sale outside Wisconsin
- Tobacco products sold to the Armed Forces (e.g., Fort McCoy, Coast Guard stations, etc.) or state or federally operated veterans' hospitals and clinics
- Tobacco products sold to interstate carriers of passengers for hire to be resold to bona fide passengers being transported
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Will the Wisconsin Department of Revenue (DOR) refund or credit any tobacco products taxes I paid?
Yes. There are distributor refunds/credits and Tribal refunds:
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Distributor Refunds/credits - a licensed tobacco products distributor can receive a refund or credit on the following [sec. 139.80, Wis. Stats.]:
- Tobacco products upon which the Wisconsin tobacco products tax has been paid and shipped to customers outside Wisconsin
- Tobacco products upon which the Wisconsin tobacco products tax has been paid and returned to the manufacturer and/or short shipments
- Tobacco products upon which the Wisconsin tobacco products tax has been paid and destroyed due to damage or becoming unfit for sale. Call (608) 266-6701 for requirements that must be met to destroy tobacco products and claim a tax credit
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Tribal Refunds - see Part 5. E. of
Publication 304,
Cigarette, Tobacco, and Vapor Products Tax and Regulatory Information, for information about agreements with Native American Tribes.
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How do I correct a tobacco products return I already filed?
- You must electronically file an amended return. You are required to electronically file all tobacco products tax reports, returns and amended returns with the Department of Revenue (see question #8).
- If you are filing an amended tobacco products tax return, you must file a true, corrected and complete return. The amended return must include all previously reported unchanged transactions as well as the corrected information.
- Do not file a return that only reports the changes.
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If I file an incorrect tobacco products return, will I have to pay interest or penalties?
Yes. If you file an incorrect tobacco products return, the following will be imposed:
- Unpaid taxes - 12% interest per year [sec. 139.85(1), Wis. Stats.]
- Refunded taxes - 3% interest per year [sec. 139.85(1), Wis. Stats.]
- Negligence penalty - 25% of the tax if there was negligence in filing a return [sec. 139.85(1), Wis. Stats.]
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Should I notify the Department of Revenue (DOR) if the business has a change to its name, address, or ownership or if the business no longer operates in Wisconsin?
Yes. You must notify us when your business has any change to its name, address, or ownership, or when you stop operating in Wisconsin.
- You can tell us by letter or attach a note to your return
- If your name or ownership changes or you receive a new Federal Employer Identification Number (FEIN), you must file a new application and update your security
- When you end operations, you must file a return for the last month (or quarter) of operations even if you were in business only a few days during that period
- If you have any questions about your tobacco products tax permit, contact us at (608) 266-6701
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What records should I keep for Wisconsin tax purposes and how long should I keep them?
- You must keep a complete copy of your tobacco products tax returns and all records related to your business for at least five years so DOR employees can verify your tax liabilities and your compliance with Master Settlement Agreement (MSA) requirements [secs. 139.82(1), 139.83, Wis. Stats., and 995.12(2)(a)9.]
- Required records include, but are not limited to: purchases and sales, receipts (whether taxable or exempt), inventories, distribution, and product consumption records
- You must keep your records organized in a format and place available for review by DOR. Records must be available for inspection at all reasonable hours, including all business hours.
- If you do not adequately maintain your records, all products purchased or received are subject to tax without benefit of any deductions
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What is a "Remote retail sale"?
Any sale of cigars or pipe tobacco to a consumer that satisfies any of the following:
- The consumer submits the order for the sale by telephone, a method of voice transmission, mail, or the internet or other online service, or the seller is otherwise not in the physical presence of the consumer when the order or request for purchase is made.
- The cigars or pipe tobacco are delivered to the consumer by common carrier, private delivery service, or other method of remote delivery, or the seller is not in the physical presence of the consumer when the consumer obtains possession of the cigars or pipe tobacco.
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What is a "Remote retail seller?"
A person located inside or outside of Wisconsin who makes remote retail sales.
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Who can make remote retail sales?
The holder of a remote retail sales permit obtained from the Wisconsin Department of Revenue can make remote retail sales. Remote retail sales can only be made for cigars or pipe tobacco.
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Who pays the tax on remote retail sales?
The remote retail seller pays the excise tax and sales tax on remote retail sales to consumers in Wisconsin.
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How is the excise tax calculated for a remote retail seller?
The tax is calculated by multiplying the actual cost to the distributor or remote retail seller by 71%. The tax on cigars cannot exceed 50 cents for each cigar.
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What is actual cost?
"Actual cost" means the total price of cigars or pipe tobacco charged by the manufacturer or other seller to an unrelated distributor or remote retail seller. The total price includes all charges by the manufacturer or other seller that are necessary to complete the sale. The total price does not include a reduction for any cost or expense, regardless of whether the cost or expense is separately stated on an invoice, that is incurred by the manufacturer or other seller, including fees, delivery, freight, transportation, packaging, handling, or marketing costs, federal excise taxes, import fees, or duties. The total price does not include a reduction for the value or cost of discounts or free promotional or sample products. For purposes of this subsection, a manufacturer or other seller is related to a distributor or remote retail seller if the 2 parties have significant common purposes and substantial common membership or, directly or indirectly, substantial common direction or control.
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How is the excise tax on remote retail sales reported to the Wisconsin Department of Revenue?
Remote retail sales are reported on Form TT-100,
Wisconsin Distributor's Tobacco and Vapor Products Tax Return, and supporting schedules. The sample tax forms and instructions can be found on the
Cigarette, Tobacco and Vapor Products Forms page.
Tax returns are required to be filed electronically using one of the following methods:
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My Tax Account, the department's self-service business tax filing system.
- Transmitting an approved XML data file to the department. See the
XML page on the Department website for more information.
This document provides statements or interpretations of the following laws and regulations enacted as of March 26, 2025: secs. 71.74, 73.03, 78.11, 134.65, 134.66, 139.34, 139.38, 139.39, 139.40, 139.44, 139.75, 139.76, 139.77, 139.78, 139.79, 139.80, 139.803, 139.805, 139.81, 139.82, 139.83, 139.84, 139.85, 995.10, and 995.12,
Wis. Stats., and secs. Tax 9.001, 9.68, and 9.69,
Wis. Adm. Code.
Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.
Contact Us
Wisconsin Department of Revenue
Excise Tax Unit
PO Box 8900
Madison, WI 53708-8900
Phone: (608) 266-6701
Fax: (608) 261-7049
Email:
DORExcise@wisconsin.gov