# Tax - General (GTG)

## Title 12. Tobacco Tax

### Subtitle 3. Tax Payment

#### Section 12-301

In this subtitle, "licensed wholesaler" means a wholesaler who is licensed under Title 16, Subtitle 2 of the Business Regulation Article to act as a wholesaler or under Title 16.5, Subtitle 2 of the Business Regulation Article to act as an other tobacco products wholesaler.

#### Section 12-302

(a) A manufacturer of sample cigarettes shall pay the tobacco tax on those cigarettes distributed in the State without charge, in the manner that the Comptroller requires by regulation, with the return that covers the period in which the manufacturer distributed those cigarettes.

(b) The wholesaler who first possesses in the State unstamped cigarettes for which tax stamps are required shall pay the tobacco tax on those cigarettes by buying and affixing tax stamps.

(c) The tobacco tax on other tobacco products shall be paid by the wholesaler who sells the other tobacco products to a retailer in the State.

(d)

  (1) A licensed other tobacco products retailer or a licensed tobacconist shall pay the tobacco tax on other tobacco products on which the tobacco tax has not been paid by filing a quarterly tax return, with any supporting schedules, on forms provided by the Comptroller on the following dates covering tax liabilities in the preceding quarter:

    (i) January 21;

    (ii) April 21;

    (iii) July 21; and

    (iv) October 21.

  (2) A licensed other tobacco products retailer or a licensed tobacconist required to file a tax return under paragraph (1) of this subsection shall pay a tobacco tax at the rate provided in Sec. 12-105(b) of this title based on the invoice amount charged by the licensed other tobacco products manufacturer, exclusive of any discount, trade allowance, rebate, or other reduction.

(e)

  (1) An out-of-state seller shall pay the tobacco tax on pipe tobacco or premium cigars on which the tobacco tax has not been paid.

  (2) An out-of-state seller shall pay the tobacco tax on pipe tobacco and premium cigars by filing a tax return, with any supporting schedules, on forms provided by the Comptroller:

    (i) on or before the 21st day of the month after a sale of premium cigars or pipe tobacco is made; or

    (ii) on dates specified by the Comptroller by regulation.

  (3) For the period that the return covers, the return shall state:

    (i) the stock keeping unit number for any premium cigars and pipe tobacco sold; and

    (ii) for each stock keeping unit:

      (1) the quantity of premium cigars and pipe tobacco sold during the return period; and

      (2) the price of the premium cigars and pipe tobacco sold, as determined under Sec. 12-105(c) of this title.

#### Section 12-303

(a)

  (1) A licensed wholesaler may buy tax stamps, in the manner and at the time that the Comptroller requires by regulation.

  (2) Tax stamps may not be bought from a person other than the Comptroller unless the buyer:

    (i) has written permission from the Comptroller to do so; or

    (ii) is acting in accordance with the regulations of the Comptroller for stamping floor stock.

(b) The Comptroller shall allow a licensed wholesaler a discount of 0.82% of the purchase price of tax stamps.

#### Section 12-304

(a) A manufacturer that pays the tobacco tax shall indicate prominently on each package of cigarettes that:

  (1) the package contains sample cigarettes that are not for sale; and

  (2) all applicable tobacco taxes on those cigarettes have been paid.

(b)

  (1) Except as provided in subsection (c) of this section, within 72 hours after receiving cigarettes in the State and before selling or attempting to sell the cigarettes, a licensed wholesaler who first possesses the cigarettes shall affix, to the smallest cigarette package, tax stamps:

    (i) in a total amount that at least equals the tobacco tax due on the number of cigarettes in the package; and

    (ii) in the manner that the Comptroller requires, including placing the tax stamps on the cigarette package so that the stamps are visible to a buyer.

  (2) If a tax stamp has been affixed to a package of cigarettes, a person may not affix the same tax stamp to another package of cigarettes.

(c) A licensed wholesaler is not required to affix tax stamps to:

  (1) sample cigarettes if the cigarette package is marked in accordance with subsection (a) of this section; or

  (2) cigarettes that are segregated or marked to indicate that the cigarettes:

    (i) were received within the immediately preceding 72 hours; or

    (ii) are being held for a sale or use that is exempt under this title.

(d)

  (1) Except as provided in subsection (c)(2) of this section, a rebuttable presumption exists that any unstamped cigarettes in the possession of a licensed wholesaler are possessed in violation of this title.

  (2) The licensed wholesaler who possesses unstamped cigarettes has the burden of proving that the cigarettes are not possessed in violation of this title.

#### Section 12-305

(a) Unless otherwise authorized under this title, a person may not possess, sell, or attempt to sell unstamped cigarettes in the State.

(b) A person may not make, cause to be made, or procure an altered or counterfeited tax stamp.

(c) A person may not knowingly or willfully use, transfer, or possess an altered or counterfeited tax stamp.

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Md. Code Ann., Tax-Gen. (as displayed at mgaleg.maryland.gov, October 16, 2026)