Cigarette stamping

From the 2024 DOR Tax Exemption Study

82.04.601 - Cigarette stamping Description Compensation that wholesalers and retailers receive from the Indian tribes for affixing stamps on packages of cigarettes is exempt from B&O tax. Purpose Historically, cigarette wholesalers and retailers did not pay tax on such compensation. This exemption codified pre-existing practices. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes Minimal Minimal Minimal Minimal Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 Minimal Minimal Minimal Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - No growth based on historical data. Data Sources - Department of Revenue, Excise tax data Additional Additional Information Information Category: Business Year Enacted: 2007 Primary Beneficiaries: Cigarette wholesalers and retailers Taxpayer Count: 60 Program Inconsistency: None evident JLARC Review: Expedited review completed in 2023 2024 Tax Exemption Study