Cigarette stamping

From the 2024 DOR Tax Exemption Study

Det. No. 17-0249, 38 WTD 60 (February 1, 2019) 61 under the cash register. The store clerk told the LCB agent that they sell single-stick (individual) cigarettes. The LCB agent asked for Taxpayer’s purchase invoices for its cigarettes for a six-month period, which indicated that Taxpayer bought approximately 10 cartons of this brand monthly. Based on visual observations of shelf stock versus stock under the register, the LCB estimated that Taxpayer sold one carton (ten packs) of single-stick cigarettes monthly. Taxpayer obtained a cigarette retailer license endorsement in February 2013 and began reporting gross revenue on its combined excise tax return in March 2013. Based on records provided, visual observations, and history, the LCB estimated that [T]axpayer sold [the equivalent in single-stick cigarettes of one carton (ten packs) of cigarettes monthly]. On April 18, 2017, the Department issued an estimated assessment for $ . . . , which represented the $ . . . per pack cigarette remedial penalty as described in the . . .RCW 82.24.120 multiplied by 420, the estimated number of packs of single-stick cigarettes Taxpayer sold during the relevant time period. Taxpayer petitioned for