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Cigar & Tobacco Products Tax Manual
Chapter 1 – Permits, Records, and Reports
Permits
To engage in business as a distributor, wholesaler, bonded agent, or retailer, a person must apply for and receive the applicable permit from the Comptroller. Permits are required for each place of business owned or operated by a distributor, wholesaler, bonded agent, or retailer. The types of permits include:
- Distributor: A person who is authorized to receive cigars or other tobacco products from a manufacturer outside the state or within the state. A distributor may also be a person who manufactures produces or imports tobacco products for the purpose of making a first sale in this state or otherwise brings or causes to be brought into this state tobacco product for sale, use or consumption. The distributor permit fee is $300 (as of 11/19/2003). The permit expires on the last day of February of each year.
- Wholesaler: A person, including a manufacturer's representative, who sells or distributes tobacco products in Texas for resale but who is not a distributor. A wholesaler may only purchase tobacco products for which the tobacco tax has been paid by a permitted distributor. The wholesaler permit fee is $200 (as of 11/19/2003). The permit expires on the last day of February of each year.
- Bonded Agent: A person in Texas who is an agent of a manufacturer outside this state and receives cigars and tobacco products in interstate commerce, and stores the cigars and tobacco products for distribution or delivery to distributors under orders from a person outside this state. The bonded agent permit fee is $300 (as of 11/19/2003). The permit expires on the last day of February of each year.
- Retailer: A person who sells tobacco products to consumers. The retailer permit fee is $180 (as of 11/19/2003). The permit expires on the last day of May of each even-numbered year.
- A combination permit, for a designated place of business, may be issued by the comptroller for cigarettes and tobacco products under Section 154.102. A person who receives a combination permit is subject to the provisions of this chapter in the same manner as a person holding a single permit under Tax Code Chapter 155. The permits are non-assignable.
Records Required
The record keeping requirement for Texas taxpayers under Tax Code Chapter 155, were amended by Senate Bill 1 (82nd Legislature, 1st Called Session) to require taxpayers to keep their records open for inspection for at least four years, and with respect to records related to a taxpayer's claim, longer than four years during any period when tax, penalty or interest may be assessed, collected or refunded by the Comptroller or while an administrative hearing or judicial proceeding is pending. Refer to Tax Code Section 155.110.
Failure to produce records is considered evidence that the cigars or tobacco products were received for the purpose of making a first sale without payment of the tax. Refer to Tax Code Section 155.112.
Distributors, wholesalers, bonded agents, and export warehouses are required to keep records at each place of business of all tobacco products purchased or received. Retailers are required to keep records at their principal place of business. Specific requirements are found in Tax Code Section 155.101.
Distributors and wholesalers are required to keep records of each sale, distribution, exchange, or use of tobacco products whether taxed under this chapter or not. See Tax Code Section 155.102.
Manufacturers are required to keep records of sales of cigars and tobacco products to permit holders. These requirements are found in Tax Code Section 155.103. A manufacturer's representative is required to maintain the same records as a wholesaler. Specific requirements are found in Tax Code Section 155.104.
Distributors or wholesalers may be required, when considered necessary by the comptroller to file a report for each month of sales to retailers in this state. These requirements are found in Tax Code Section 155.105.
Common carriers are required to maintain records of cigar and tobacco products transported into Texas. See Tax Code Section 155.107. Requirements for bonded agents are found in Tax Code Section 155.108.
Failure to produce records is considered evidence that the cigars or tobacco products were received for the purpose of making a first sale without payment of the tax. Refer to Tax Code Section 155.112.
Reports
Chapter 155 of the Tax Code requires distributors to file with the Comptroller Form 69-133 Texas Distributor Monthly Report of Cigar and Tobacco Products on or before the last day of each month. In addition to this report, the following supplementary reports are required as supporting documentation:
- Form 69-134 Texas Distributor Monthly Report of Cigar and Tobacco Products Class W worksheet, effective 09/01/2009
- Form 69-135 Distributor Report of Interstate Sales of Cigar and Tobacco Products, effective 09/01/2009
- Form 69-136 Distributor Receiving Record of Cigar and Tobacco Products, effective 09/01/2009
- Form 69-315 Certificate of Tax Exempt Sale, effective 09/01/2009
These forms and the forms for Distributor Monthly Reports prior to 09/01/2009 can be found online.
Chapter 155 of the Tax Code also requires manufacturers who sell cigars and tobacco products to a Texas permit holder to file a report on or before the last day of each month. There is no set form for this report.
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(Revised 07/2012)