Skip navigation
Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts

taxes

E-Cigarette Retailer Permit

The 87th Legislature passed Senate Bill 248, which creates, and requires e-cigarette retailers to obtain, an e-cigarette retailer permit. The bill became effective Sept. 1, 2021.

An "e-cigarette" is an electronic cigarette or any other device that simulates smoking by using a mechanical heating element, battery or electronic circuit to deliver nicotine or other substances to the individual inhaling from the device as defined by the Health and Safety Code Section 161.081, Public Health Definitions: Definitions.

The definition also includes a consumable liquid solution or other material aerosolized or vaporized during the use of an electronic cigarette or similar device, regardless of whether the liquid or other material contains nicotine.

Who Must Apply For a Permit?

Retailers who intend to sell, store, or make a delivery sale of e-cigarette products to consumers in Texas must apply for an e-cigarette retailer permit online through the Webfile system or by submitting Form AP-242, Texas Application for E-Cigarette Retailer Permit (PDF). This includes owners of vehicles from which e-cigarette products are sold and any person who sells e-cigarettes on the internet or by telephone or mail order.

A retailer must have an active Texas sales tax permit for each place of business.

A place of business is

  • a location where e-cigarettes are sold;
  • a location where e-cigarettes are kept for sale or consumption or stored; or
  • a vehicle from which e-cigarettes are sold.

Neither a residence nor a public storage unit qualifies as a place of business.

A permit will not be issued until the application and fee are received by the Comptroller’s office. See the permit fee schedule below.

Retailer Permit Fee Schedule

The retailer permit fee is $180 (amount is prorated over a two-year period).

The e-cigarette retailer permit period begins June 1 and expires on May 31 of each even-numbered year. Renewal is every two years.

During the last three months of the permit period, the Comptroller’s office may collect the prorated permit fee for the permit period and the fee for the next period.

Permit Fee Table One

If, at the time of application, the applicant does not hold a valid tobacco retailer permit for the same business location, use Permit Fee Table One below to calculate the permit fee due.

Permit Fee Table One
  January February March April May June July August September October November December
EVEN
YEAR
    $202.50*
*PRORATED
$195.00*
*PRORATED
187.50*
*PRORATED
$180.00 $172.50 $165.00 $157.50 $150.00 $142.50 $135.00
ODD
YEAR
$127.50 $120.00 $112.50 $105.00 $97.50 $90.00 $82.50 $75.00 $67.50 $60.00 $52.50 $45.00
EVEN
YEAR
$37.50 $30.00 $22.50* $15.00* $7.50*              

Permit Fee Table Two

If, at the time of application, the applicant holds a valid tobacco retailer permit for the same business location, use Permit Fee Table Two below to calculate the permit fee due.

Permit Fee Table Two
  January February March April May June July August September October November December
EVEN
YEAR
    $101.25*
*PRORATED
$97.50*
*PRORATED
$93.75*
*PRORATED
$90.00 $86.25 $82.50 $78.75 $75.00 $71.25 $67.50
ODD
YEAR
$63.75 $60.00 $56.25 $52.50 $48.75 $45.00 $41.25 $37.50 $33.75 $30.00 $26.25 $22.50
EVEN
YEAR
$18.75 $15.00 $11.25 $7.50 $3.75              

Penalty for Violations

A retailer selling e-cigarette products without a permit may forfeit a penalty of up to $2,000 and could face criminal charges. Each day of operating without a permit is a separate violation per Health and Safety Code Section 147.0151, E-Cigarette Retailer Permits: Penalties.

Additional Resources

Need Help?