Cigarette and Tobacco Products Tax

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.
 

Pursuant to North Dakota Century Code (N.D.C.C.) § 23-12-10, cigar lounges in North Dakota need an approved certification through the Office of State Tax Commissioner. 
To be approved, a business will need to demonstrate that at least 15 percent of their annual gross income is generated through the sale of cigars and pipe tobacco. For an initial application, this income verification is not required. 

Application for Certification - Cigar Lounges 

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

Cigarette and tobacco products tax is paid to the state by licensed tobacco wholesalers and retailers. Taxpayers are required 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.

Instructions & Templates 

Form 44CT - Cigarette & Tobacco Tax Return Instructions

• Form 44CT – Excel Import Template
  • Form 44CT - Excel Import Template Instructions
  • Code Tables for Excel Import:
    • Manufacturer Codes
    • State Tobacco License Number Codes
    • Brand Codes

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, smokeless tobacco, electronic smoking devices, or e-liquids in interstate commerce. 

Filing an amended return can be complete by logging into your business account on ND TAP.

Pay Online- Fast and Convenient!

Make a tax payment electronically to the Office of State Tax Commissioner by using ND TAP.

Make a Payment

Mail- Check or money order

If you are unable to pay using ND TAP, you may pay by check or money order, made payable to North Dakota State Tax Commissioner. Complete and print the payment voucher on ND TAP and mail both to the Office of State Tax Commissioner at 600 E. Boulevard Ave. Dept. 127, Bismarck, ND 58505-0599. 

Print Payment Voucher

• Directory of Tobacco Product Manufacturers (TPMS)

  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.

  Information on Tobacco Product Manufacturers and Distributors is located on the official North Dakota Attorney General Office website and includes information about certification and the Directory of Certified TPMS. 

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

  Noncompliant Manufacturer Brands

• 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.

• N.D.C.C. Chapter 57-36