Cigarette and Tobacco Taxes Fact Sheet 2
Businesses that sell cigarettes and tobacco products to the public in Minnesota must have a special retailer’s license.
Retail Licensing Requirements
Retail sellers of cigarettes and tobacco products in Minnesota must have a Minnesota Cigarette and Tobacco Product Retailer’s license prior to purchasing or selling cigarettes or tobacco products.
A separate license is required for each location or vending machine from which cigarettes or tobacco products are sold at retail.
Licenses are issued and administered by the city, county, or town in which the business is located.
Responsibilities of License Holders
License Display
You must conspicuously display your license at each retail location so that it is visible to the public, according to your licensing authority’s rule.
Records
Retailers must:
- Keep a legible copy of each invoice for one year from the date of the invoice or as long as the cigarette or tobacco product listed on the invoice is available for sale or in their possession, whichever period is longer
- Keep copies of the invoices at each retail location or at a central location
- Provide copies at a retail location within one hour when requested by Revenue
- Copies should be numbered and kept in chronological order.
Purchases
You must purchase your inventory of cigarettes and other tobacco products from a licensed Minnesota cigarette and/or tobacco distributor or subjobber. View our licensed Cigarette and Tobacco Distributors List.
If you make purchases of cigarettes or tobacco products from other sources, you are subject to civil and criminal penalties, and possible seizure of your cigarettes and tobacco products.
Sales
You must only sell Minnesota-stamped cigarettes or tobacco products on which Minnesota tax has been paid.
You are not allowed to sell cigarettes below cost, as determined by the Minnesota Department of Commerce under the Minnesota Unfair Cigarette Sales Act (UCSA). UCSA is law enacted to protect the public by prohibiting sales of cigarettes at below wholesale or retail cost. For more information about cigarette pricing, go to Cigarettes on Commerce’s website.
If you possess or make illegal sales of cigarettes or tobacco products, you are subject to civil and criminal penalties, and possible seizure of your cigarettes and tobacco products.
Inspections
You must allow Revenue staff — without a search warrant — to enter your place of business and inspect the premises, the records you are required to keep, and the packages of cigarettes, tobacco products, and vending devices on the premises. For more information about our inspections, go to Compliance Checks of Cigarette and Tobacco Retailers.
If you have any questions about Cigarette or Tobacco Tax, contact MN Dept. of Revenue by emailing cigarette.tobacco@state.mn.us or calling 651-556-3035.