Tobacco Luxury Tax

Please see Publication 541 for general information regarding current laws impacting the distribution, sale and taxation of tobacco products in Arizona.

The Tobacco Luxury Tax FAQs are also available for answers to frequently asked questions regarding tobacco luxury tax.

Taxpayers may also contact the Tobacco Tax Unit at (602) 716-7808 for more information or for assistance.

 

Go to Arizona Luxury Tax Online (ALTO)

 

Notice for Licensed Tobacco Distributors regarding Manufacturers’ Invoice Numbers

Pursuant to Arizona Revised Statutes (A.R.S.) § 42-3462(A)(3) and (4), Arizona licensed tobacco distributors are required to reference not only invoice numbers from invoices documenting shipments of cigarettes to their customers but also invoice numbers corresponding to the invoices documenting cigarette shipments by manufacturers to them. 

The department issues this reminder to all licensed distributors that manufacturers’ invoice numbers must be provided for all cigarette transactions reported on Arizona Luxury Tax Online (ALTO).  Beginning with the February 2020 monthly return that is due on March 20, 2020, the department will reject returns filed lacking manufacturers’ invoice numbers, and may additionally assess penalties associated with the failure to timely file this data.  The department also recommends that distributors review monthly returns before the February 2020 return and amend filings that are missing manufacturers’ invoice numbers to avoid additional penalties. 

Please contact the department’s Tobacco Tax Unit at (602) 716-7808 or [email protected] for additional information or assistance.

 

Tobacco 21 Legislation

Please be advised, the federal “Tobacco 21” legislation, Pub. L. No. 116-94, § 603 (codified as amended at 21 U.S.C. § 387f) signed by President Trump on December 20, 2019, raises the federal minimum legal age for purchasing tobacco products from 18 to 21.  

 

For additional guidance on how to comply with the new laws as a tobacco retailer, please consult the U.S. Food and Drug Administration's website at www.fda.gov/tobacco-products/retail-sales-tobacco-products/selling-tobacco-products-retail-stores.  The Department of Revenue, as well as other agencies that have a role in enforcing state tobacco laws, will seek to provide updated guidance to the public should any change to Arizona law occur.

 

Tobacco Distributor Roundtable Meeting

Arizona Department of Revenue Tobacco Unit invites you to join this Google Hangout Meets.

Tuesday, January 28, 2020
10:00 am | (UTC-07:00) Arizona | 30 mins
Join by phone: (209) 425-2805
Meeting PIN: 344 411#

When it's time, join the meeting.

Add to Calendar

 

 

Distributor Licensing

State law requires distributors that acquire or possess tobacco products for the purpose of making the initial sale or distribution in Arizona to apply for and obtain a tobacco distributor license from the department.

 

New Applications:

Applications for a tobacco distributor license must be submitted electronically through Arizona Luxury Tax Online (“ALTO”). The department may only consider applications that comply with this requirement.

 

License Renewals: 

Licensed distributors are required to renew their license annually. A tobacco distributor license is valid for one year and must be renewed prior to the expiration date.

A license renewal notice will be sent to the distributor two months prior to the license expiration date. The license fee will post to the license account on Arizona Luxury Tax Online (“ALTO”) at that time. Payment for the license renewal fee must be submitted online. Requests for license renewals are subject to review by the Department to determine continued eligibility.

 

Directory of Arizona Licensed Tobacco Distributors:

ADOR publishes a directory of licensed tobacco distributors, including any trade names or business names used by the licensee. The directory is updated each month to reflect active licensees.

 

View Directory of Arizona Licensed Tobacco Distributors

 

Internet and Delivery Sales of Cigarettes and Most Other Tobacco Products are Prohibited.

The sale of cigarettes and most other tobacco products over the internet to any person in Arizona other than a licensed tobacco distributor or retailer is illegal.

For more information, please see the Arizona Attorney General’s website.

 

 

 

Additional Resources