What is the tax rate on cigarettes?
From October 1, 2001, through December 31, 2007, the tax rate on cigarettes is 3.85¢ excise tax per single cigarette, which is 77¢ on a 20-pack. For periods after January 1, 2008, the tax rate on cigarettes is 8.85¢ excise tax per single cigarette, which is $1.77 on a 20-pack. [sec. 139.31, Wis. Stats., effective January 1, 2008]. Inventory tax: When the cigarette tax rate increases, an inventory tax is imposed on all permittees and retailers who possess stamped cigarettes held for resale on which the cigarette tax was paid at the prior rate and upon unaffixed stamps in the possession of distributors. The inventory tax is the amount by which the cigarette tax rate increases. The inventory tax return is due 30 days after the effective date of the tax increase. Late-filed returns are subject to a $10 late-filing fee and delinquent interest of 1.5% per month. A penalty for a false or fraudulent return may be assessed and is an amount equal to the tax that the person evaded or attempted to
Period Per Single Cigarette Per 20-Pack October 1, 2001 to December 31, 2007 3.85¢ 77¢ January 1, 2008 to August 31, 2009 8.85¢ $1.77 September 1, 2009 and thereafter 12.6¢ $2.52 Inventory tax: When the cigarette tax rate increases, an inventory tax is imposed on all permittees and retailers who possess stamped cigarettes held for resale on which the cigarette tax was paid at the prior rate and upon unaffixed stamps in the possession of distributors. The inventory tax is the amount by which the cigarette tax rate increases. The inventory tax return is due 30 days after the effective date of the tax increase. Late-filed returns are subject to a $10 late-filing fee and delinquent interest of 1.5% per month. A penalty for a false or fraudulent return may be assessed equal to the tax that the person evaded or attempted to evade [sec. 139.315, Wis. Stats.]. • Who must obtain a cigarette permit? Any person that handles cigarettes at the wholesale level in Wisconsin must obtain a cigarette pe
