Cigarette Tax Information
- What's New
- Who Must Complete a Registration Application and File a Cigarette Tax Return
- When to File (Tax Due Date)
- Where to File
- Electronic Payment Options
- Amended Returns
- Interest and Penalties
- Tax Calculation
Cigarette Dealer/Retailer License Information
All cigarette dealer’s licenses are subject to renewal on an annual basis. Any issued license is effective from the date of issuance through the following September 30th and must be renewed in order for any person issued a license to continue making lawful retail sales of cigarettes after that date.
New Legislation Effective October 1, 2024
New administrative requirements in connection with the issuance and renewal of cigarette dealer’s licenses: Legislation imposes new requirements associated with the initial application for and renewal of cigarette dealer's licenses. The legislation is effective October 1, 2024. For more information, see 2024 Conn. Pub. Acts 81, Sections 57 – 59.
New Registrants
New registrants must complete the Registration application on-line using myconneCT. Once you submit the application, you will then complete the mL437-Notice of Application of Cigarette Dealer/Retailer License.
- Complete the Applicant section of the NOTICE OF APPLICATION FOR A CIGARETTE DEALER/RETAILER LICENSE.
- Confirm the “Business Information” section is correct.
- Give a copy of the notice to the clerk of the municipality where the business is [to be] located so they can post the notice on the municipality’s website for a period of no less than 2 weeks’ time.
- Not later than the day following the date an applicant provides notice to the clerk of the municipality where the business is [to be] located, the applicant shall affix a copy of this notice, which shall be maintained in a legible condition, upon the outer door of the building.
- If an application is filed for a license for a building that has not yet been constructed, the applicant shall, not later than the day following the date an applicant provides notice to the clerk of the municipality, erect and maintain in a legible condition on the site where the business is to be located, a sign that:
- (A) is not less than six feet by four feet,
- (B) contains the license applied for and the name of the proposed licensee, and
- (C) is clearly visible from the public highway.
- Return and log into your myconneCT account with DRS and complete the Acknowledgement return. You can access this return from within the Action Center of your account. You will need to declare under oath that the specified requirements have been met. When filing the return, you will need to authorize the payment of the associated fee.
After filing the return with DRS, provide an additional 3 weeks, after the notice has been posted on the municipality website for 2 weeks, for any 10 persons who are residents of the municipality where the business is located to file a remonstrance containing objection to the suitability of such place of business provided any such issue is not controlled by local zoning.
DRS may hold a hearing as to the suitability of the proposed location.
License Renewals
In the beginning of each August, a notice (aL827-Application for Renewal of Cigarette Dealer/Retailer License) will be sent to all registered taxpayers, giving guidance on the requirements to renew your license.
Before the Department of Revenue Services (DRS) can renew any cigarette dealer’s license, the General Assembly now requires the DRS to establish a comment period pursuant to which certain persons can object to the renewal of any such license. Under these new requirements, certain persons have up until twenty-one days before the renewal date of such license to file written objections with DRS challenging the “suitability of [the] applicant or proposed place of business.” Given that validly issued cigarette dealer’s licenses expire on September 30th of each year, objections to the renewal of such licenses can be filed with DRS on or before September 9th annually.
If the DRS has not received any objections to the renewal of your license, you can expect to receive a Cigarette Dealer/Retailer License Renewal billing notice from DRS in mid-September.
If an objection is received, DRS is now required under the law to hold a hearing to consider the objections. You will receive written notice from DRS as to the time and date of the hearing. In addition, DRS will provide you with a copy of the specific objection(s) in advance of the hearing. After holding the hearing, the DRS will render a decision as to whether or not it will renew your license. Please note that, regardless of DRS’ decision, either you or the persons who objected to the renewal of your license have the right under the law to contest the decision.
New Cigarette Dealer/Retailer License Applicants: Frequently Asked Questions and Answers
- What happens if my information on the mL437, Notice of Application of Cigarette Dealer/Retailer License is incorrect?
You should log into your myconneCT account and update any necessary information. Additionally, you will need to correct any information on the form prior to providing the letter to the appropriate Town Clerk.
- How long does it take to receive my permit from the time I registered my new business/location?
Once you perform the necessary steps as outlined on the mL437, you will then need to return to your myconneCT account and pay the fee. It will generally take about 5 weeks to receive your permit from the date you entered that your town clerk has posted your application on their website.
- Can I pay my new registration fee by credit card?
No. Only ACH debits are accepted via myconneCT for new registrants.
Cigarette Dealer/Retailer License Renewal Applicants: Frequently Asked Questions and Answers
- When do I make a payment to renew my license?
Cigarette Dealer/License renewal fee bills will be posted to your account in the middle of September. Please do not make a payment until after the fee bill has been posted to your account.
- Will I receive my license as soon as I pay my bill?
Licenses will be sent beginning September 20th provided no objections have been submitted and all returns and liabilities have been satisfied.
- What do I do if I no longer intend to sell cigarettes?
Log into your myconneCT account at portal.ct.gov/DRS to close your account.
- Can I pay my Cigarette Dealer/Retailer License Renewal bill with a credit card?
Yes. Credit card payments are accepted for application renewals.
Who Must Complete a Registration Application and File a Cigarette Tax Return
Any person engaged in the business of selling cigarette, whether at wholesale or retail, other than a person who sells solely and exclusively tobacco products must register for Cigarette Tax.
Resident and Nonresident distributors must complete and file Form CT-15, Connecticut Monthly Tax Stamp and Cigarette Report - Resident Distributor and /or Form CT-15A, Connecticut Monthly Tax Stamp and Cigarette Report - Nonresident Distributor no later than the 25th day of the month following the month for which the report is made.
The following business account types can file online through myconneCT: Cigarette Distributors, Cigarette Manufacturers, Cigarette Retailer/Dealer, Cigarette Dealer/Vendor.
Use myconneCT to file taxes, make payments, view filing history, and communicate with the agency simply and more efficiently on virtually any mobile device, including laptops, tablets, and smartphones, 24 hours a day, 7 days a week.
Click here to File, Pay, or Register Now on myconneCT!
All Cigarette tax payments (e.g., return payments) must be made electronically.
DRS myconneCT
You can make a free direct payment at the same time as filing your return through myconneCT. Upon completion of the return, you will automatically be taken to the payment page where you may authorize DRS to electronically withdraw payment from your checking or savings account or make a payment by credit card on any date up until the due date. You will receive a confirmation number upon successful filing and may print a copy for your records.
Pay by Direct Payment: You may also log into myconneCTand use the Make a Payment option to initiate a payment without a return (to pay bills, returns, or make advance payments). Select your payment type and date.
Pay by Credit Card or Debit Card: You may elect to pay your tax liability using a credit card (American Express®, Discover®, MasterCard®, VISA®) or comparable debit card. To pay by credit card or debit card, log into your account in myconneCT and select Make a Payment.
A convenience fee will be charged by the credit card service provider. You will be informed of the amount of the fee and you may elect to cancel the transaction.
At the end of the transaction, you will be given a confirmation number for your records.
Modernized e‑File (MeF)
Check with your current software provider to determine if this option is available.
ACH Credit
ACH credit method users should consult with their banking institution for guidelines to ensure that payment is received timely. (Taxpayers must pre‑register with the DRS Electronic Commerce Unit (ECU) prior to using this option). The taxpayer initiates an electronic payment through their banking institution. This payment must be sent in the ACH standard CCD+TXP format. For more information visit Filing and Paying Connecticut Taxes Electronically.
Use Form CT-15 and /or Form CT-15A, Cigarette Tax Return, to file amended returns by checking the Amended box.
Generally, an amended tax return must be filed within three years of the due date of the original return or, if an extension of time was granted, three years from the extended due date.
In general, interest and penalty apply to any portion of the tax not paid on or before the original due date of the return.
Interest
If the tax is not paid when due, interest will accrue at the rate of 1% per month or fraction of a month until the tax is paid in full.
Penalty for Late Payment or Late Filing
The penalty for late payment or underpayment of cigarette products tax is 10% of the tax due or $50, whichever is greater.
If no tax is due, DRS may impose a $50 penalty for the late filing of any return or report required by law to be filed.
Penalty for Willful Failure to File or Pay
Anyone who willfully fails to pay the tax or file a return will be fined up to $1,000 or imprisoned up to one year, or both, in addition to any other penalty.
Penalty for Willful Filing of a Fraudulent or Materially False Return
If you willfully file a tax return you know to be fraudulent or false in any material matter, you may be fined up to $5,000 or imprisoned from one to five years, or both.
Penalty for Failure to Disclose Listed Transaction
A penalty of 75% of the amount of the deficiency may be imposed when it appears that any part of the deficiency is due to failure to disclose a listed transaction, as defined in IRC § 6707A.
Tax Rate and Stamps
Connecticut imposes a tax on all cigarettes sold in the state. The tax rate is $4.35 per pack (CGS § 12-296, as amended by SB 1502, June Special Session (§§ 628-630)).