The Basics of Tobacco License
Basically, all businesses that sell, distribute, or manufacture tobacco products need a license. The American government has strict rules and regulations for the sale and purchase of tobacco. Thus, having an up-to-date license is mandatory for businesses.
Businesses that Require Tobacco License:
Here is a quick list of businesses the NYS government mandates licenses on:
- Importer: These businesses import tobacco and its products and ultimately require a license.
- Manufacturers: Companies manufacturing tobacco-related products, including cigarettes, cigars, and smokeless tobacco, need licenses.
- Distributors: businesses that distribute tobacco and its products must have a license to operate legally in the state.
- Retailers: Finally, businesses that sell these items to end users require a license. These include a tobacco shop, convenience store, supermarket, or pharmacy.
Typically, these businesses must have a tobacco license. However, there can be other requirements and businesses other than the ones mentioned.
Requirement of Tobacco License:
- Basic License Application: Every license application requires an application form. You can download it from the NYC government website.
- Sales Tax Identification: You need a sales tax identification number or application confirmation number. In the majority of cases, you will also need a Certificate of Authority.
- Proof of Business Address: To acquire a license, you will be submitting a copy of the utility bill dated under 90 days. It should be registered under your business name. Additionally, this can be a copy of the current lease or deed.
- Proof of Home Address: Every business owner must provide their proof of home address as well. The same rules of business address apply to proof of home address, too.
Fees and Charges for Tobacco License:
Every license application is submitted to DCWP with a $150 to $200 fee. Below is a detailed chart of these charges:
License Duration: 2 years Expiration Date: December 31 License: $200 for the full two years. | ||
If Your Application Is Received Between These Times: | Your permit is about to expire on: | You’ll be charged: |
In an odd-numbered year, from January 1 to June 30 | December 31 of Even Years | $200 |
In an odd year, from July 1 to December 31 | December 31 of Even Years | $150 |
when an even year runs from January 1 to June 30 | December 31 of Odd Years | $200 |
In an even-numbered year, from July 1 to December 31 | December 31 of Odd Years | $150 |
These charges can be submitted via check or money deposit in person. Additionally, license authorities accept online payment via credit card (American Express, Visa, MasterCard, and Discover Card only).
Note: License fees are non-refundable. Thus, make sure you make the right decision before making any payments.
The Tobacco License Renewal Process
Step-by-Step Approach to Tobacco License Renewal:
Below are the steps to renew your license. Remember, tobacco license renewal is not just a suggestion; it’s a requirement.
Check Expiration:
The opening move is to check your tobacco license expiry date. Is it expiring within the next few months? The license approved in even-numbered years expires on even-numbered year’s December 31. And the same goes for odd number years as well.
Collect Information:
You will need some details of your business, such as your current license number and other business identification specifics.
Application Form Submission:
Pay the Fee:
Basically, a fee of $200 is charged for each tobacco license renewal. However, if your payment is returned by the government, the department holds the right to fine $50 extra per return.
Submit Your Application:
Once you are done paying the fee, attach the receipt, and it is ready to be submitted. If you are sending it by mail, ensure the address is accurate. However, if your application is submitted via email, please follow the electronic application submission instructions.
Stay Compliant:
As a final point, stay compliant with tobacco licensing laws. There are multiple penalties for businesses that don’t follow licensing requirements. Additionally, your license can be revoked at any time.
Puff, puff, pass… the renewal paperwork is DONE!
The Price of Non-Compliance: Tobacco Penalties
In New York City, there is no escape route for violation of the law. If you fail to comply with tobacco-selling laws, you will encounter penalties. As a business, you can encounter different types of penalties. Here are the details:
Not Having COA:
Improper Registration of Retail Tobacco Business:
As per the Cigarette Tax Law, a retail dealer must properly register tobacco business firsthand. If it’s found improper, there will be a fine of at least $5,000. However, the fine can’t exceed more than $25,000 for the first violation.
However, if it’s a second violation, the fine will be $10,000 at least and $35,000 max within a three-year timeframe.
Improper Registration of Vending Machine:
Businesses that own vending machines for the sale of cigarettes and other tobacco products also require proper registration. Thus, in case of improper registration, there will be a civil fine of $750 but not more than $2,000 for a first violation. Coming to the second violation, the civil fine will be $2,000 minimum and $6,000 maximum.
Final Point:
If you are planning any tobacco-related business in New York, having a license is mandatory. Additionally, fulfilling all requirements is also crucial to avoid any penalties and stress. No doubt, tobacco is a profitable business, but rules and regulations are strict as well. So, make sure you understand all the instructions and follow them while submitting the tobacco license renewal application.
Furthermore, if you are having trouble going through the application process by yourself, you can lean on license renewal services. And there is no need to search for these services, as you are already on the right page. Tax King Service, keep licensing aches away from you!
Curious about Tobacco Licenses? Find Your Answers Here
1- What are the consequences of not renewing a tobacco license?
- If you don’t renew your tobacco license, you will be subject to penalties. Additionally, you will lose the authority to sell tobacco products in states. In short, tobacco license renewal is mandatory to keep your business running smoothly.
2- Is flavored tobacco banned in New York?
- Yes, flavored tobacco is banned in New York. You can only sell or possess for sale flavorless tobaccos. However, mint or wintergreen-flavored are allowed in the state.
3- How much time does it take to get a tobacco license?
It takes two working weeks to get a tobacco license. You can expect a little delay of up to 21 days. However, maximum, it will take a month to get or renew your license.