taxes

Cigarette and Tobacco Products Manufacturers’ Responsibilities

Manufacturer’s Permit

Who is required to have a permit?

Any business location in Texas where cigarettes or tobacco products are manufactured is required to have a manufacturer’s permit from the Comptroller’s office.

If you are a cigarette and/or tobacco products manufacturer located outside of Texas, and you are engaged in business in Texas, you are also required to have a manufacturer’s permit – even if you do not actually manufacture cigarettes or tobacco products in Texas.

You must obtain a manufacturer’s permit from the Comptroller’s office by completing Form AP-175, Texas Application for Non-Retailer Cigarette and/or Tobacco Products Permit (PDF). The fee for the permit is $300.

Who is not required to have a permit?

If you are a manufacturer located outside of Texas, and you are not engaged in business in Texas, you are not required to obtain a permit.

Recordkeeping Requirements for Permit Holders

Texas permitted and registered manufacturers must keep certain business records for a minimum of four years.

A cigarette manufacturer must keep records showing each of the following:

• Number and kind of cigarettes in unstamped packages sold.
• Number and kind of cigarettes in stamped packages sold, if any.
• Date the cigarettes were sold.
• Manufacturer’s list price for the cigarettes.
• Account number and the location where the cigarettes were shipped, if any.
• Name of the common carrier.

A tobacco products manufacturer must keep records showing each of the following:

• Number and kind of tobacco products sold.
• Date the tobacco products were sold.
• Name and permit number of the permit holder.
• Manufacturer’s list price for the tobacco products.
• Place where the tobacco products were shipped.
• Name of the common carrier.
• Manufacturer’s listed net weight for each unit other than cigars.

Reporting Requirements for Permit Holders

A manufacturer, regardless of location, who sells cigarettes and/or tobacco products to a person holding a valid Texas permit must file a report with the Comptroller’s office on or before the 25th of each month showing the sales information for the previous month.

A cigarette manufacturer’s report must include each of the following:

• Number and kind of cigarettes in unstamped packages sold.
• Number and kind of cigarettes in stamped packages sold, if any.
• Date the cigarettes were sold.
• Account number and the location where the cigarettes were shipped, if any.

A tobacco manufacturer’s report must include all the items listed for tobacco products manufacturers in the preceding "Recordkeeping Requirements" section.

Product Price and Net Weight Information

If you are a manufacturer selling cigarettes to a permit holder in Texas, you are required to submit information on your list prices to the Comptroller’s office 15 days prior to any scheduled price changes.

If you are a manufacturer selling tobacco products to a permit holder in Texas, you are required to file your list price and product net weight information for the previous month with the Comptroller’s office on or before the 25th of each month.

You must submit your published list prices to:

Texas Comptroller of Public Accounts
Tobacco Tax Section
Account Maintenance Division
P. O. Box 13528
Austin, Texas 78711-3528

Failure to file a product price list, or any changes to a product price list, may result in penalties of up to $2,000 per day per list.

98-630
(05/2020)