For wholesalers selling tobacco for resale: work out state, county and city excise from the item and the customer’s selected places. Carry the detail onto the document and into the monthly reports.
The item supplies the taxable units. The customer record supplies the selected places.
Illustrative product story · Sample dataTobacco excise is the tax added when you sell tobacco for resale. Turn it on in HQ: the item and customer’s selected places do the calculation for the invoice, sales order or credit note.
Places are selected on the customer record. They are not inferred from the address.
Added to the goods’ price. Tobacco tax replaces sales tax on this line. Each level rounds to the cent, on each line.
20 packs × the three example rates = $18.50 tobacco tax.
Two cartons. Twenty packs. $18.50 tobacco tax saved. When a rate changes, add the new rate and its start date. HQ uses the rate in force on the document’s date. Here the example state rate changes from 67.5¢ to 70¢ on December 1; this invoice keeps what it charged.
A credit uses the original invoice’s rates on the returned quantity.
Each state, county and city can have its own rate for each category. A blank rate means no tax at that level. Explore the four calculation types below.
Per pack, per cigar or per wrapper: quantity × taxable units per item × the applicable rate.
For chewing tobacco, use the taxable ounces rounded up. Net package weight gives HQ the weight it needs.
For smoking tobacco and snuff, the net package weight selects the applicable band and its per-package tax.
Where a place uses a percentage, its tax is worked out from the price before discount.
All numerical rates and weight bands here are examples, not current tax rates.
Set the state and the categories you sell. Then give HQ the local rates, units and customer places it needs.
Enable tobacco excise and choose Alabama. Tick the products under “Which of these do you sell?” The state’s rates fill in for those categories.
Charging tobacco excise taxes in Alabama.
Turn offAdd the merchant’s licence numbers. They print at the top of invoices, sales orders and credit notes that carry tobacco tax.
At the top of documents that carry tobacco tax.
Add each county and city you collect for, who it is paid to, and its rates. County and city rates are entered by the merchant.
The state, counties and cities you collect for.
Each place’s rate for each category. Blank means no tax at that level.
Set Taxable units per item, plus Net package weight for products taxed by weight. Pick the customer’s state, county and optional city.
Chosen places, not the address. No places selected means no tobacco tax.
An invoice, sales order or credit note with a tobacco line prints the tobacco layout. State, County and City appear separately on each line, with category totals and each tax named in the totals.
| Item | Qty | Goods | State | County | City |
|---|---|---|---|---|---|
| Sample cigarette carton10 packs per carton | 2 | $160.00 | $13.50 | $4.00 | $1.00 |
Licence numbers at the top. Each tax level beside the line. Named tax totals below.
Keep the state resale file and the tax collected by place beside each other at month end.
The state resale report prepares the monthly file. Review the required details and fix anything missing before export.
Tobacco sales for resale (Alabama)
Tobacco tax collected by place shows the state, counties and cities, what was collected, and who to pay. Credit notes in the month are subtracted.
November example · Includes credit notes in the month.
HQ produces the file and the amounts. You upload or paste the file to the state, review the result there, and pay the appropriate recipients. HQ does not file returns or pay the tax.
File preparation does not guarantee state acceptance.
Alabama today. Read the setup and monthly workflow for the state you collect for.
State setup, licence details, the resale file for My Alabama Taxes, and your monthly filing and payment handoff.
Explore Alabama ↗Online-store orders do not carry tobacco excise in HQ.
