Laws, Regulations and Annotations


Business Taxes Law Guide – Revision 2022

Cigarette and Tobacco Products Tax Annotations

Seized Inventory

Retail Stock. Untaxed cigarette and tobacco products held in retail stock and seized as part of investigations of tax evasion are subject to the Cigarette and Tobacco Products Tax. Generally, retail stock includes inventory located at the taxpayer's retail place of business such as product displayed for retail sale or stored beneath sales counters in back room offices, or in any other place on the premises of the retail establishment.

Generally, product found outside of the retail business, including product found at the taxpayer's residence, off-site public storage facilities or "in transit," is not considered part of retail stock.

Product seized in such small quantities as to clearly be for personal use is not considered part of retail stock. 7/18/97.