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AZ.gov Arizona's Official Web Site
State of Arizona
Department of Revenue
Setting the Standard for Tax Services
 

Luxury Tax - Liquor & Tobacco in Arizona

The Arizona Department of Revenue's Luxury Tax Unit can be contacted at (602) 716-7808


Liquor

Licensing: You will need to contact the Arizona Department of Liquor Licenses and Control at (602) 542-5141.

Forms: Liquor Tax Reporting forms


Tobacco

Licensing:  For a Tobacco License Application please contact the Luxury Tax Section at 602-716-7808

Forms: Tobacco Tax reporting forms

Tobacco Tax brochure. For a copy - click here

Notices for Licensed Tobacco Resellers:

Attorney General Notice to Arizona Licensed Distributors re: Ban on Delivery Sales - Senate Bill 1280

Tobacco Distributors - click here for a list

2006 Tobacco Tax Legislation (Senate Bill 1066)

Provides new licensing guidelines for cigarette manufacturers, importers, and distributors; creates new civil and criminal penalties relating to the use or possession of unstamped, or unlawfully stamped cigarettes; specifies when cigarettes are either tax-exempt or are not required to be stamped; and changes the requirements for licensed distributors of tobacco products.

To view a copy of Senate Bill 1310 - click here
 

Master Settlement Agreement

On November 23, 1998, leading United States tobacco product manufacturers entered into a settlement agreement entitled the master settlement agreement with the state of Arizona. The master settlement agreement obligates the participating manufacturers, in return for a release of past, present and certain future claims against them, to pay substantial sums to the state (tied in part to their volume of sales); to fund a national foundation devoted to the interests of public health; and to make substantial changes in their advertising and marketing practices and corporate culture, with the intention of reducing underage smoking.

Arizona's Model Statute

In order to ensure that tobacco product manufacturers who determine not to enter into such a settlement do not use a resulting cost advantage to derive large short-term profits in the years before liability may arise without ensuring that the state will have an eventual source of recovery from them if they are proven to have acted culpably, the Arizona Legislators enacted ARS §44-7101. ARS §44-7101 requires that such non-participating manufacturers establish a reserve fund to guarantee a source of compensation and to prevent such non-participating manufacturers from deriving large, short-term profits and then becoming judgement-proof before liability may arise.

To view a copy of ARS §44-7101. (click here)
 

Senate Bill 1310

To assist in the enforcement of ARS §44-7101 and make certain that only non-participating manufacturers who abide by the reserve fund requirements are permitted to have their cigarettes sold in the state of Arizona, the Arizona Legislators enacted Senate Bill 1310 (SB1310) which was signed into law by the Governor on May 19, 2003. SB1310 establishes ARS §44-7111 which prohibits the stamping, sale, or possession for sale, any and all cigarettes (including roll-your-own tobacco) not listed in a directory of cigarettes approved for stamping and sale, which shall be established and maintained by the Office of the Attorney General.

To view a copy of Senate Bill 1310. (click here)