NYS Tax Department: Increase in excise tax on cigarettes and little cigars and floor tax due

Increase in excise tax on cigarettes and little cigars and floor tax due

Effective September 1, 2023, the New York State excise tax rate on cigarettes increases by $1.00 per pack of 20 cigarettes, from $4.35 to $5.35.

If you are a retail or wholesale cigarette dealer or cigarette agent, you must calculate and pay a floor tax on the cigarettes in your inventory as follows:

1. At close of business, August 31, 2023, count the number of packs of 20 cigarettes in your possession.
2. Multiply the total number of packs from step 1 by $1.00. For example: A retail cigarette dealer has 200 packs of 20 cigarettes each in their store on August 31. The floor tax due is computed as follows: 200 packs of cigarettes  x $1.00 floor tax rate = $200 total floor tax due.
3. By November 20, 2023, file a floor tax return and pay the tax due from Step 2. 

Note: If you are a cigarette agent, you must additionally take an inventory and pay the floor tax on the number of unstamped cigarette packs and unaffixed tax stamps.

We will post a fill-in Form CG-11, Cigarette Tax Floor Tax Return, on our website in late August. You can type your information directly into the fields on the form to avoid errors and delays in processing.

Little cigars

Also effective September 1, 2023, the New York State excise tax rate on little cigars increases by $1.00 per pack of 20 little cigars. However, there is no floor tax imposed on the inventory of little cigars.

For more information, see N-23-2, New York State Excise Tax on Cigarettes to Increase on September 1, 2023, and N-23-3, New York State Excise Tax on Little Cigars to Increase on September 1, 2023.