Cigarette and Tobacco Products Tax

Medium

Cigarette and tobacco products tax must be paid by:

  • Wholesalers who purchase, sell, or bring cigarettes or tobacco products into the state for resale.
  • Retailers who sell untaxed cigarettes or tobacco products to consumers.
  • Individuals who purchase untaxed cigarettes or tobacco products for personal consumption online or from sources outside the state.

For information about historical tax changes, view Cigarette and Tobacco Products Tax History.

Medium
Licensing

Retail and wholesale tobacco licenses are available through the North Dakota Attorney General's Office Licensing Division. The Licensing Division can be contacted by email at ndag@nd.gov or phone at 701-328-2329.

Reporting

Cigarette and tobacco products tax is paid to the state by licensed tobacco wholesalers and retailers. Taxpayers are encouraged to use ND TAP to file cigarette and tobacco products tax by the return due date.

If you have any questions visit our ND TAP information.

ND TAP Info


Forms

Form 44CT - Cigarette & Tobacco Monthly Tax Return – Monthly or quarterly return for non-ND TAP users.

Wholesalers Certification of Non-Participating Manufacturer Brands – Monthly form to report brand name and quantity of cigarette and roll-your-own tobacco sales within North Dakota subject to escrow.

Non-Participating Manufacturers Certificate of Compliance – Used by non-participating manufacturers to report their escrow responsibility.

PACT Act Report – Used if you advertise, offer for sale, transfer, or ship cigarettes or smokeless tobacco in interstate commerce. 

Rates

Cigarette Rates

Cigarettes must be sold in packages of 20 or more. North Dakota does not allow an exemption for a minimal purchase of cigarettes or tobacco products.

Gray Market and Repatriated Cigarettes may not be sold or possessed in North Dakota.

North Dakota does not stamp cigarette packages. Cigarette packs with another state’s stamp should be returned by the retailer for refund or credit. Packs with stamps are subject to seizure and assessment of tax if found available for sale to consumers.

Cigarette tax is levied at 2 different rates using mills (mill = 1/10 of a cent):

  • 22 mills per cigarette for cigarettes weighing less than 3 pounds per thousand
    • Package of 20 cigarettes – 22 mills x 20 cigarettes = 44 cents tax
    • Carton of 200 cigarettes – 22 mills x 200 cigarettes - $4.40 tax
  • 22½ mills per cigarette for cigarettes weighing more than 3 pounds per thousand

Roll-Your-Own Tobacco Rates

Tobacco which is advertised as roll-your-own is taxed at the cigarette rate.

  • 1 cigarette = .09 ounces of roll-your-own tobacco.
  • Sales of bulk roll-your-own cigarette tobacco are converted to taxable cigarettes

Other Tobacco Products Rates – Pipe Tobacco, Cigars, Snuff, Chewing Tobacco

All tobacco products other than cigarettes and specific roll-your-own are subject to the tobacco products tax.

Tobacco products tax is levied in categories:

  • Pipe tobacco and cigars – 28% of the wholesale purchase price
  • Snuff – 60 cents per ounce
  • Chewing tobacco – 16 cents per ounce
Participating Manufacturers and Non-Participating Manufacturers

North Dakota is part of the Master Settlement Agreement (MSA) with major tobacco companies. Tobacco manufacturers who are not part of the MSA are considered non-participating manufacturers and must pay escrow tax based on their volume of sales in North Dakota. If brand or manufacturer are not found in the below documents, call 701-328-3343.


List of Participating Manufacturers 


List of Non-Participating Manufacturers


List of non-participating manufacturers whose sales are illegal due to noncompliance in their escrow taxes to North Dakota

Native American Retailers and Reservation Purchases

Individuals who are not enrolled tribal members who purchase cigarettes or tobacco products from a Native American retailer must report and pay cigarette and tobacco products tax, as well as use tax, on purchases for their own use.

Native American retailers must submit a Sales of Untaxed Cigarettes Tribal Retailer Certification to North Dakota wholesaler before any sales of cigarette or tobacco products are made on the reservation.