Division of Alcoholic beverages and tobacco

Bureau of Auditing - Cigarette and Tobacco Surcharge

Protecting Florida’s Health Act.

The 2009 Florida Legislature passed “Protecting Florida’s Health Act” which levies a surcharge on both cigarettes and tobacco products (other than cigars).  The surcharge on cigarettes is at the rate of $1.00 per standard pack of 20 cigarettes, or 5 cents per cigarette.  The surcharge on other tobacco products is 60% of the wholesale sales price.  The surcharge on both cigarettes and tobacco products will be administered, collected, and enforced by the Division of Alcoholic Beverages and Tobacco (ABT) in the same manner as the excise taxes on these products. You may view the Protecting Florida’s Health Act by clicking here.

Cigarette Poster.

Florida statutes require that a stamp be placed on all cigarettes sold in Florida to evidence that the excise tax under section 210.02 and the surcharge under section 210.011 have been paid on those cigarettes.  The Division of Alcoholic Beverages and Tobacco has a toll-free number for reporting violations of this part.  Upon a determination that a violation has occurred, the informant who provided the information that led to the determination shall be paid a reward of up to 50 percent of the fine levied and paid under this section.

Each retail dealer must conspicuously display a notice in every location where cigarettes are sold.  This notice can be obtained by contacting the division at any location throughout Florida, or by downloading the notice and printing it on 8 ½ x 11 paper.  The cost of any notice obtained from the division will be $1.50 per sign.

You may download the required poster here. Cigarette Poster

Surcharge on Floor Stock.

The legislation provides for the surcharge to be calculated and paid on the existing inventory of cigarettes and tobacco products held for sale before the opening of business on July 1, 2009.  Applying the surcharge to the floor stock ensures that all products sold on or after the effective date will have the surcharge applied consistently.  Each retailer and distributor in Florida is required to report and pay the surcharge on their floor stock to the division before or on July 21, 2009, using the Surcharge Return form.  The wholesale sales price for retailers is equal to 75 percent of the price paid by the retailer to the distributor or manufacturer. Payment of the surcharge can be made by certified check or money order, and can be made in four installments if desired.  For the purpose of compensating the retailer and distributor for taking an inventory of the cigarettes and other tobacco products in its possession and remitting the surcharge levied on these products, each retailer and distributor may deduct 5 percent of the amount of surcharge due and certified and remitted to the division as a collection allowance if the required documentation and surcharge is submitted by the required dates.

Here are links to the forms and the instructions for completing them:

Retail Form (Cigarettes and Other Tobacco Products (OTP))

Cigarette Distributor

Other Tobacco Products (OTP) Distributor

Payment Options.

Important Note! According to the “Protecting Florida’s Health Act” bill, all surcharge payments must be by "certified check, money order, or an electronic funds transafer". Personal and business checks are not acceptable forms of payment.

The Act allows the retailers and distributors the option to pay the surcharge on their floor stock in one payment or in four equal installments. For the purpose of compensating each permit holder for taking an inventory and remitting the surcharge each permit holder may deduct 5% for making timely payment(s) and submitting their inventory back up documents.

Required Documents

Each permit holder must submit a copy of the floor stock (inventory) documents that are used to calculate the surcharge due. These documents must be sent with the Floor Stock Inventory Return and the remittance due on July 21, 2009.

For installment payments due on August 10, August 30, and September 9, the inventory documents do not need to accompany the Floor Stock Inventory Return and remittance.

Questions and Answers   

For Retailers, please review the questions and answers provided at our FAQs or direct questions to the Department of Business and Professional Regulation Customer Contact Center at 850.487.1395.

Distributors should direct questions to their servicing AB&T Bureau of Auditing office.

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