Every distributor acquiring or possessing for the purpose of making the initial sale or distribution in Arizona of any tobacco product on which a tax is imposed must obtain a license to sell tobacco products from the Department.
A tobacco distributor is any person who manufactures, produces, ships, transports, imports, acquires or possesses for the purpose of making the first sale either of the following:
- Cigarettes without Arizona tax stamps affixed;
- Roll-your-own tobacco or other tobacco products on which Arizona tobacco taxes have not been paid.
No. A tobacco product manufacturer is not required to obtain a tobacco
distributor license if it sells or distributes its product directly to an Arizona-licensed
Any tobacco product manufacturer, regardless of whether or not it is located
within Arizona, must be licensed by the Department as a tobacco distributor
and pay the applicable tax unless the manufacturer sells or distributes its
product to a person who is an Arizona-licensed distributor.
You may apply for a tobacco distributor license through Arizona Luxury Tax Online
by selecting “New Business Registration” on the main screen.
You may also apply for a tobacco distributor license by submitting Arizona
Form 10428, together with the applicable fee, to the Department. Arizona
Form 10428 is available online at: https://www.azdor.gov/Forms/Tobacco.aspx
Yes. Any application for a tobacco distributor license must be accompanied
by a fee of $25 for each place of business included in the application.
An applicant must include each business location from which it conducts any
activity related to the initial sale or distribution of tobacco products in Arizona,
regardless of where the business is located. An applicant owning or
controlling at least 80% of more than one business engaged in the distribution
of tobacco products must apply for a single license encompassing all such
businesses and list each place of business in the application.
“Additional business locations” are all sites from which a single distributor
conducts its distribution business. “Affiliated entities” are separate businesses
engaged in tobacco distribution activities that are each owned or controlled (at
a threshold of at least 80%) by the same person.
No. Although “additional business locations” and “affiliated entities” must be
disclosed in your license application, and a $25 application fee paid for each
location, these business locations are not separately licensed by the
Department. However, a copy of the license issued by the Department must
be conspicuously displayed at each location.
Yes. Tobacco distributor licenses are valid for one year unless revoked by the
Department. Licensed tobacco distributors must renew their license annually.
Fees are assessed at the time of each renewal consistent with the fees
associated with the original application. Licensed tobacco distributors may
renew their license by accessing their account on Arizona Luxury Tax Online
and paying all applicable fees.
No. Once a tobacco distributor license has expired, the distributor must cease
all operations related to the distribution of tobacco products in Arizona until it
applies for and receives a new license from the Department.
The Prevent All Cigarette Trafficking (“PACT”) Act, 15 U.S.C. §§ 375, et seq.,
requires all persons who sell, transfer, or ship (or advertise or offer to sell,
transfer or ship) cigarettes (including roll-your-own tobacco) or smokeless
tobacco in interstate commerce for profit to:
- Register with the United States’ Attorney General and the tobacco tax administrator of the state into which the shipment, advertisement or offer is
made (for Arizona, the administrator is the Department of Revenue); and
- File monthly reports with the tobacco tax administrator, no later than the
10th of each month, identifying the brands, quantities, and recipients of
cigarette and smokeless tobacco shipments into such state during the
These provisions apply to any person meeting the above criteria, including manufacturers, distributors and delivery sellers.
The registration statement must include:
- the registrant's name and trade name, if any;
- the address of the registrant's principal place of business and of any other
place of business;
- the telephone number for each place of business;
- a principal electronic mail address;
- any website addresses; and
- the name, address, and telephone number of an agent in Arizona authorized to accept service on behalf of the person.
The report is due on the 10th day of each month and must include a
memorandum or copies of invoices covering each and every shipment made
into Arizona during the previous calendar month. The report must provide at
least the following information, organized by city or town and by zip code:
- the name and address of the person to whom the shipment was made;
- the invoice or memoranda information relating to the specific customer
including brand and quantity of cigarettes and smokeless tobacco shipped;
- the name, address, and phone number of the person delivering the
shipment to the recipient on behalf of the delivery seller.
In addition to the registration and reporting requirements, the PACT Act
requires that each delivery seller comply with “all State, local, tribal, and other
laws generally applicable to sales of cigarettes or smokeless tobacco as if the
delivery sales occurred entirely within the specific State and place, including
laws imposing—(A) excise taxes; (B) licensing and tax-stamping requirements;
(C) restrictions on sales to minors; and (D) other payment obligations or legal
requirements relating to the sale, distribution, or delivery of cigarettes or
smokeless tobacco.” 15 U.S.C. § 376a(a)(3).
Violators of the PACT Act may be subject to criminal and civil penalties.
The PACT Act report may be submitted electronically through Arizona Luxury Tax Online
. In order to submit a PACT Act report online, you will first need to
register your business and establish an account. You can register your
business through Arizona Luxury Tax Online by selecting “New Business
Registration” on the main screen.
You may also submit your PACT Act report to the Department of Revenue by
completing and mailing Arizona Form 11134, available on the Department’s
website at https://www.azdor.gov/Forms/Tobacco.aspx
Yes. You must register with the Department if your business sells tobacco
products at retail and is located on tribal lands. Once registered, you will be
assigned a retailer identification number to be used by Arizona-licensed
tobacco distributors when reporting sales to your business.
You can register your retail location through Arizona Luxury Tax Online
selecting “New Business Registration” on the main screen. You may also
register by completing and mailing Arizona Form 14-2039, available upon
request by contacting the Luxury Tax Unit at 602-716-7808
or by emailing
Licensed tobacco distributors must electronically file all required returns and
remit payment of taxes due on tobacco products other than cigarettes through
Arizona Luxury Tax Online
. Distributors who fail to electronically file their
return or remit payment by electronic funds transfer may be subject to
penalties and interest.
You may also use Arizona Luxury Tax Online to: (i) apply for or renew a
tobacco distributor license; (ii) order Arizona tax stamps; (iii) register as a
retailer on tribal lands; (iv) request rebates of tobacco taxes paid; and (v)
submit a PACT Act report.
Access your account on Arizona Luxury Tax Online
and select any field that is
highlighted in blue. This is a hyperlink to edit those fields. Enter the correct
information and click “save.” You are required to update your account
information within 30 days of any change to your business address.
Licensed tobacco distributors are required to file a return for each place of
business on or before the 20th day of the month following the month reported
in the return.
For tobacco products other than cigarettes, each distributor is required to
submit the return, together with payment of any tax due, on or before the 20th
day of the month following the month in which the tax accrues. The return and
payment must be submitted within 10 calendar days of the due date to avoid
penalties and interest.
Yes. For cigarette distributors, failure to file your tobacco tax return by the
statutory deadline will subject you to a penalty under A.R.S. § 42-1125(K).
For distributors of tobacco products other than cigarettes, failure to file your
tobacco tax return within 10 days of the statutory deadline will subject you to a
penalty under A.R.S. § 42-1125(K). Failure to pay tax due on tobacco
products other than cigarettes within 10 days of the statutory deadline will
subject you to a penalty under A.R.S. § 42-1125(D) and interest pursuant to
A.R.S. § 42-3501(D).
To file a tobacco tax return and remit payment of tax, navigate to Arizona Luxury Tax Online and follow these steps:
- Enter your username and password on the main screen.
- You will receive an authentication code by electronic mail or text. Enter the
code on the main screen.
- Select the account you wish to file a tax return for.
- Click the “File Now” link for the period for which you want to file the return.
- You can choose the method by which you would like to file your return.
You may upload an Excel file, complete the return manually (enter the data
directly into Arizona Luxury Tax Online) or file a return with zero activity.
Select the chosen filing method from the drop-down menu on the screen.
- Follow the instructions on the screen to complete your return and remit
payment for any tax due.
Detailed instructions on how to upload return information and make an online
payment through Arizona Luxury Tax Online are available on the Department’s
website at https://www.azdor.gov/TobaccoEFileProgram/Training.aspx.
Yes. For each type of OTP (excluding cigars, which are reported as individual
units), you are required to report the exact number of ounces received or sold.
The information must be separated and supported by an invoice. Reported
ounces must be exact and may not be rounded.
Generally, the luxury privilege tax (A.R.S. § 42-3052), three Tobacco Taxes for
Health Care (A.R.S. §§ 42-3251, 3251.01, 3251.02) and Tobacco Tax for
Early Childhood Development and Health (A.R.S. § 42-3371) are applicable to
all tobacco sales occurring off of tribal lands and those made on tribal lands
between retailers and purchasers that are not enrolled members of that tribe.
The current combined tax rate on cigarettes is $0.10 per cigarette ($2.00 per
pack of 20 cigarettes and $2.50 per pack of 25 cigarettes).
The current combined tax rates for other tobacco products (“OTP”) are as
- Small cigars (weighing not more than three (3) pounds per 1,000 cigars) -
$0.441 per 20 cigars.
- Cigars retailing at more than $0.05 each - $0.218 per cigar.
- Cigars retailing at not more than $0.05 each - $0.218 per 3.
- Smoking tobacco, snuff, fine cut chewing, etc. - $0.223 per ounce.
- Cavendish, plug, or twist - $0.055 per ounce.
The Indian Reservation Tobacco Tax (A.R.S. § 42-3302) is applicable to
tobacco sales made by a retail business that is owned and operated either by a tribe on whose reservation the retail sale takes place, or a member of that
tribe, to purchasers who are not enrolled members of that tribe.
The current tax rate on cigarettes subject to the Indian Reservation Tobacco
Tax is $0.05 per cigarette ($1.00 per pack of 20 cigarettes and $1.25 per pack
of 25 cigarettes).
The current tax rates for other tobacco products (“OTP”) subject to the Indian Reservation Tobacco Tax are as follows:
- Small cigars (weighing not more than three (3) pounds per 1,000 cigars) -
$0.223 per 20 cigars.
- Cigars retailing at more than $0.05 each - $0.11 per cigar.
- Cigars retailing at not more than $0.05 each - $0.11 per 3.
- Smoking tobacco, snuff, fine cut chewing, etc. - $0.113 per ounce.
- Cavendish, plug, or twist - $0.028 per ounce.
Licensed tobacco distributors pay tax on cigarettes through the purchase of
tax stamps from the Department. These stamps are then affixed to packs of
cigarettes intended for sale in Arizona. An affixed stamp is evidence that
taxes have been paid on that product (or pre-collected in the case of the Indian
Reservation Tobacco Tax). Arizona cigarette stamps are available in four
colors. The color of the stamp reflects the classification of tax paid or
- Blue stamps represent the payment of the combined tax rate for general
- Red stamps represent the pre-collection of the Indian Reservation Tobacco Tax.
- Yellow stamps represent sales to enrolled members of a tribe that are
exempt from state taxation but are subject to tribal tobacco tax.
- Green stamps represent sales to enrolled members of a tribe that are
exempt from state and tribal tobacco taxation.
For more information on tobacco tax rates and the various types of tobacco
tax stamps issued by the Department, please see Publication 541 available on
the Department’s website at https://www.azdor.gov/Publications.aspx.
“Affixed stamps” references tobacco tax stamps that have been placed on a
pack of cigarettes. “Unaffixed stamps” references tobacco tax stamps that
have not yet been removed from the original roll as issued by the Department.
No. Distributors may not sell or provide tobacco tax stamps to any other
distributor or person.
You may request a rebate of tobacco taxes paid through Arizona Luxury Tax Online.
You may also request a rebate of tobacco taxes paid by completing Arizona
Form 840-A or 840-B and mailing the form to the Department. These forms
are available on the Department’s website at: https://www.azdor.gov/Forms/Tobacco.aspx.
Licensed distributors are required to establish entitlement to a rebate by
providing a report executed by the retailer that purchased the tobacco
products upon which the request is based. The Department has prescribed
Arizona Form 845-CIG and Arizona Form 845-OTP to facilitate compliance
with this requirement. Both forms are available on the Department’s website
In the event the retailer is uncooperative or has gone out of business, a
licensed distributor may request authorization to submit proof other than the
required retailer report by completing Arizona Form 850 and submitting the
form to the Department. Arizona Form 850 is available on the Department’s
website at: https://www.azdor.gov/Forms/Tobacco.aspx.
For more information
on this requirement, please see Luxury Tax Procedure 15-2, available on the
Department’s website at: https://www.azdor.gov/LegalResearch/Procedures.aspx.
Licensed distributors may request a refund for cigarette tax stamps or taxes
paid on other tobacco products that were exported from the state, have
become unfit for sale due to breakage or spoilage, or have been returned to
the manufacturer. Distributors are required to provide proof to the Department
to establish entitlement to the refund. The Department will not refund tax for
cigarette tax stamps affixed to articles that are deemed contraband under
A.R.S. Title 42, Chapter 3.
You may request a refund of tobacco taxes paid on cigarettes and other
tobacco products through Arizona Luxury Tax Online
. The required proof
must be uploaded with your online request.
You may also request a refund of tobacco taxes paid by completing Arizona
Form 840 or 840-C and mailing the form to the Department. These forms are
available on the Department’s website at: https://www.azdor.gov/Forms/Tobacco.aspx
Yes. Samples of cigarettes packaged in quantities of 20 or 25 can lawfully be
distributed in Arizona, provided than an Arizona-licensed distributor has
reported and affixed the proper Arizona tax stamps to the packs. Samples of
tobacco products other than cigarettes can be lawfully distributed in Arizona,
provided that an Arizona-licensed distributor first receives the samples, timely
reports them to the Department and remits payment of all applicable state
For more information on the treatment of samples of cigarettes and other
tobacco products in Arizona, please see Arizona Luxury Tax Notice 15-4
available on the Department’s website at: https://www.azdor.gov/Business/LuxuryTax.aspx
You may visit the following online resources for additional information
regarding tobacco tax in Arizona: