Wisconsin Department of Revenue Criminal Investigation Section Alcohol & Tobacco Enforcement Unit
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1 Wisconsin Department of Revenue Criminal Investigation Section Alcohol & Tobacco Enforcement Unit
2 CONTACT INFORMATION: Erin Dorn: (office) (cell) v Georgeann King: (office) (cell) e.wi.gov
3 Overview of Alcohol & Tobacco Unit Created in 1933, Department of Taxation, Division of Beverage & Cigarette Tax
4 Agent Territories
5 CIGARETTE & TOBACCO LAWS CIGARETTE TAX As of September 2009, Wisconsin state excise tax imposed on each pack of cigarettes at a rate of $ 2.52 pack or $ carton. The federal excise tax on each pack of cigarettes is $1.01 pack or $10.10 carton.
6 CIGARETTE & TOBACCO LAWS TOBACCO TAX As of September 1, 2009, the excise tax on T.P. increased to 71% of the wholesale value. Chewing tobacco is taxed at 100%. Cigars are taxed at 50 cents per cigar.
7 * 2.83
8 CIGARETTE TAX STAMPS Cigarette distributors/wholesalers purchase cigarette tax stamps from the WDOR. These stamps are then affixed to each pack of cigarettes sold in WI. Tobacco products do not have any type of tax stamp.
9 CIGARETTE & TOBACCO LAWS Retailers must obtain all cigarettes and tobacco only from distributors holding a Wisconsin permit Cigarettes with a Tribal tax stamp should only be found at tribal retail outlets. Any cigarettes or tobacco obtained via the Internet from out of state or country are untaxed/illegal.
10 ILLEGAL RUSSIAN CIGARETTES
11 ILLEGAL CIGARETTES Kyrgyzstan
12
13
14 Current WI tax stamps
15 Cigarette License Applications WI ss covers licensing. Penalties = Minimal Potential confiscation of stock of cigarettes/tobacco product if operating w/o license
16 LICENSING BASICS State law (4)-Alcohol; (2)-Cigarette; provides that licensed premises are subject to inspection at all reasonable hours. -inspection may include books, papers and records. -refusal to permit inspection may result in suspension or revocation of license or criminal charges. -inspection may be conducted by DOR, DOJ, sheriff, police, marshal or constables.
17 LICENSING BASICS Individual or Partnership -- John Doe or John & Jane Doe (Actual persons) Corporation -- ABC Corporation Must appoint an Agent Limited Liability Company -- ABC Ltd Must also appoint an Agent
18 Cigarette license application
19 Application for Cigarette and Tobacco Products License Applicant s Wisconsin 15-digit Sales Tax Account Number This must be issued in the same Legal Name of the licensee below. MUNICIPAL USE ONLY License Number Period Covered Date of Issuance Legal Name (corporation, limited liability company, partnership or sole proprietorship) Federal Employer Identification No. (FEIN) Trade or Business Name (if different than Legal Name) Business Address (Permit Location) City State ZIP Code Business Located In City Village Town of: Telephone Number ( ) Business Telephone ( ) County Mailing Address (if different than Business Address) City State ZIP Code Organization (check one) Sole Proprietor Partnership Other (describe) Wisconsin Corporation Enter date incorporated: Out-of-State Corporation Are you registered to do business in Wisconsin? YES NO YES NO 1. Does the applicant understand that they must purchase cigarettes only from manufacturers, distributors or jobbers who hold a permit with the Wisconsin Department of Revenue? YES NO 2. Does the applicant understand that they must obtain a Tobacco Products Distributor permit if purchasing untaxed tobacco products from an out-of-state company? (Tobacco Products Distributor permit is available from the Wisconsin Department of Revenue at ) YES NO 3. Does the applicant understand that they cannot purchase/exchange cigarettes or tobacco products from another retailer, including transferring existing stock to a new owner? YES NO 4. Does the applicant understand that they must provide employees with tobacco sales training approved by the Wisconsin Department of Health and Family Services? (SmokeCheck.org) YES NO 5. Does the applicant understand that they may not sell, give or otherwise provide cigarettes/tobacco products to minors? YES NO 6. Does the applicant understand that they may not sell single cigarettes? YES NO 7. Does the applicant understand that cigarette and tobacco products invoices must be kept on the licensed premises for two years from the date of the invoice and be available for inspection by the Wisconsin Department of Revenue/law enforcement and that failure to comply can result in criminal penalties, including loss of cigarettes/tobacco products? YES NO 8. Does the applicant understand that only cigarettes and roll-your-own (RYO) tobacco products listed on the Wisconsin Department of Justice s website labeled Directory of Certified Tobacco Manufacturers and Brands at may be sold in Wisconsin? Cigarettes / Tobacco will be sold over counter through vending machine both READ CAREFULLY BEFORE SIGNING: Under penalty provided by law, the applicant states that each of the above questions has been truthfully answered to the best of the knowledge of the applicant. Applicant agrees to operate this business according to law and that the rights and responsibilities conferred by the license(s), if granted, cannot be assigned to another. Any lack of access to any portion of a licensed premises during inspection will be deemed a refusal to permit inspection. Such refusal is a misdemeanor and grounds for revocation of this license. SUBSCRIBED AND SWORN TO BEFORE ME this day of, 20 (Officer of Corporation/Member/Manager of Limited Liability Company/Partner/Individual) (Clerk / Notary Public) My commission expires CTP-200 (R. 2-08) Wisconsin Department of Revenue
20 QUESTIONS???
21 THANK YOU!!!
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