During the 2014 Session, the General Assembly enacted legislation that provides a civil penalty for the possession, transportation, or sale of untaxed tobacco products in a manner as to knowingly or intentionally evade the Tobacco Products Tax effective July 1, 2014. Accordingly, the Department will be issuing Guidelines regarding the implementation of the civil penalties set forth in this legislation.
The civil penalty structure will be as follows:
- First Violation: $2.50 per tobacco product, up to $500.
- Second Violation: $5 per tobacco product, up to $1,000.
- Third and Subsequent Violations: $10 per tobacco product, up to $50,000.
- Willful Intent to Defraud: $25 per tobacco product, up to $250,000.
House Bill 898 (2014)
Senate Bill 285 (2014)
Final Guidelines Adopted
- Updated Guidelines and Rules for the Tobacco Products Tax (PDF) - updated July 30, 2014