PCA

Vermont

Alerts & Updates

Key Contacts

Vermont Department of Taxes
Miscellaneous Taxes
(802) 828-2551
(802) 828-5787 fax 

Vermont Secretary of State
(802) 828-2363
sos.lobbyist@sec.state.vt.us

PCA Contact

Joshua Habursky
Glynn Loope joshua@premiumcigars.orgglynn@premiumcigars.org

Legislative Information

2019 Session Info
2019 Partisan Splits

Taxation

Vermont imposes a tax on all other tobacco products, snuff, and new smokeless tobacco possessed in the state by any person for sale. Wholesale dealers are liable for the tax on tobacco products that: he or she imports or causes to be imported into Vermont; he or she manufactures in Vermont; or are sold, shipped, or delivered by him or her to any person in Vermont. Retail dealers will also be liable for the tax on all untaxed tobacco products in their possession.

Vt. Stat. tit. 32, § 7811: Imposition of tobacco products tax

Vt. Stat. tit. 32, § 7812: Liability for and collection of tax

Department of Taxes staff reported that Vermont localities do not levy additional taxes on tobacco products.

The tax on other tobacco products is 92% of the wholesale price, except for the following:

Tobacco product typetax rate
Snuff$2.57 per ounce
New Smokeless Tobaccothe greater of $2.57 per ounce
or
if packaged for sale to a consumer in a package that contains less than 1.2 oz. of the new smokeless tobacco, $3.08 per package
Cigars with a wholesale price of $2.17 or less 92% of the wholesale price
Cigars with a wholesale price greater than $2.17 and less than $10$2 per cigar
Cigars with a wholesale price of $10 or more $4 per cigar

Vt. Stat. tit. 32, § 7811: Imposition of tobacco products tax 

Every wholesale dealer must, on or before the 15th day of each month, file a Wholesale Tobacco Dealer Report (Form TO-641) and Schedules A and B, along with payment for taxes due. Retail dealers will also be liable for the tax on all untaxed tobacco products in their possession. All taxes can be filed through myVTax. 

Vt. Stat. tit. 32, § 7813: Returns and payment of tax by a distributor

Vt. Stat. tit. 32, § 7812: Liability for and collection of tax

Form Type / NameForm Number / Link
Agency of Administration – Department of TaxesmyVTax

Cigar and Smoking Tobacco Definitions

“Other tobacco products” means any product manufactured from,  derived from, or containing tobacco that is intended for human consumption by smoking, chewing, or in any other manner, including products sold as a tobacco substitute, as defined in 7 V.S.A. § 1001(8), and including any liquids, whether nicotine-based or not, or delivery devices sold separately for use with a tobacco substitute; but shall not include cigarettes, little cigars, roll-your-own tobacco, snuff, or new smokeless tobacco as defined in this section.

Vt. Stat. tit. 32, § 7702(15)

“Cigar” means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette or is a little cigar).

Vt. Stat. tit. 32, § 7702(21)

“Snuff” means any finely cut, ground, or powdered tobacco that is not intended to be smoked has a moisture content of no less than 45% and is not offered in individual single-dose tablets or other discrete single-use units.

Vt. Stat. tit. 32, § 7702(13)

“New smokeless tobacco” means any tobacco product manufactured from, derived from, or containing tobacco that is not intended to be smoked, has a moisture content of less than 45% or is offered in individual single-dose tablets or other discrete single-use units.

Vt. Stat. tit. 32, § 7702(20)

“Retail dealer” means a person licensed under Vt. Stat. tit. 7, § 1002.

Vt. Stat. tit. 32, § 7702(10)

“Wholesale dealer” means a person who imports or causes to be imported into the state any cigarettes, little cigars, roll-your-own tobacco, snuff, new smokeless tobacco, or other tobacco product for sale or who sells or furnishes any of these products to other wholesale dealers or retail dealers for the purpose of resale, but not by the small quantity or parcel to consumers thereof.

Vt. Stat. tit. 32, § 7702(16)

“Wholesale price” means the price at which a licensed wholesale dealer sells or furnishes cigarettes, little cigars, roll-your-own tobacco, snuff, new smokeless tobacco, or other tobacco products to any retail dealer.

Vt. Stat. tit. 32, § 7702(19)

“Sale” or “sell” means any transfer, exchange, or barter in any manner or by any means whatever, of any cigarettes or tobacco products.

Vt. Stat. tit. 32, § 7702(12)

Restrictions

Vermont law prohibits smoking: in any workplace, including restaurants, bars, and other establishments in which food or drinks, or both, are served; in all publicly owned buildings and offices and all enclosed indoor places, including buildings, offices, means of transportation, common carrier waiting rooms, arcades, restaurants, bars, cabarets, retail stores, grocery stores, libraries, theaters, concert halls, auditoriums, arenas, barbershops, hair salons, laundromats, shopping malls, museums, art galleries, sports and fitness facilities, planetariums, historical sites, common areas of nursing homes and hospitals, and buildings or facilities owned or operated by a social, fraternal, or religious club; in all enclosed indoor places in lodging establishments; in designated smoke-free areas of property or grounds owned by or leased to the state; within 25 feet of state-owned buildings and offices; and on the grounds of any hospital or secure residential recovery facility owned or operated by the state.

Vt. Stat. tit. 18, § 1421: Smoking in the workplace; prohibition

Vt. Stat. tit. 18, § 1742: Restrictions on smoking in public places

Vt. Stat. tit. 18, § 1741: Definitions

Nothing in this subchapter will be construed to supersede or in any manner affect a municipal smoking ordinance provided that the provisions of such ordinance are at least as protective of the rights of nonsmokers as the provisions of this subchapter.

Vt. Stat. tit. 18, § 1428: Municipal ordinances

Nothing in this chapter shall be construed to supersede or in any manner affect a municipal smoking ordinance provided that the provisions of such ordinance are at least as protective of the rights of nonsmokers as the provisions of this chapter.

Vt. Stat. tit. 18, § 1746: Municipal ordinances

The following are exempt from the ban on smoking, subject to conditions:

  • Areas of owner-operated businesses with no employees that are not commonly open to the public
  • Any portion of a structure that also serves as the employee’s or employer’s personal residence
  • Vermont veterans’ home, in areas where smoking is allowed

Vt. Stat. tit. 18, § 1743: Exceptions

Vt. Stat. tit. 18, § 1421: Smoking in the workplace; prohibition

Vermont law does not contain exemptions from the smoking ban for bars, restaurants, or retail tobacco stores.

Effective September 1, 2019, Vermont implemented explicit restrictions on smoking, e-cigarettes and tobacco age of 21 (with US Military members exempt between 18 and 20).

Vt. Stat. tit. 7, § 1005: Persons under 21 years of age; possession of tobacco products; misrepresenting the age or purchasing tobacco products; penalty

Vt. Stat. tit. 7, § 1002(f): License required; application; fee; issuance

Similarly, it is illegal for any person to sell, provide, or furnish tobacco products, tobacco substitutes, or tobacco paraphernalia to any person under 21 years of age.

Vt. Stat. tit. 7, § 1003: Sale of tobacco products; tobacco substitutes; tobacco paraphernalia; requirements; prohibitions

Vt. Stat. tit. 7, § 1007: Furnishing tobacco to persons under 21 years of age

A person licensed under this chapter shall post in a conspicuous place on the premises identified in the tobacco license a warning sign stating that the sale of tobacco products, tobacco substitutes, and tobacco paraphernalia to minors is prohibited.

Vt. Stat. tit. 7, § 1006: Posting of signs

Vermont law contains no specific provisions concerning state preemption of local youth access laws, so local communities may pass more stringent laws or ordinances in this area.

No individual under 16 years of age may sell tobacco products, tobacco substitutes, or tobacco paraphernalia.

Vt. Stat. tit. 7 § 1002: License required; application; fee; issuance

Federal regulations prohibit free samples of cigarettes and limit free samples of smokeless tobacco products to certain age-restricted venues under several conditions.

Regulations Restricting the Sale, Distribution, and Marketing of Cigarettes, Cigarette Tobacco, and Smokeless Tobacco: Consumer Fact Sheet

In Vermont, it is illegal for any person to sell, provide, or furnish tobacco products, tobacco substitutes, or tobacco paraphernalia to any person under 21 years of age. 

Vt. Stat. tit. 7, § 1003: Sale of tobacco products; tobacco substitutes; tobacco paraphernalia; requirements; prohibitions

Vt. Stat. tit. 7, § 1007: Furnishing tobacco to persons under 21 years of age

Department of Taxes staff reported that the distribution of tobacco samples is subject to tax and licensing requirements. In addition, Department of Taxes staff reported that there are no laws restricting tobacco sampling to certain locations.

Vermont law contains no specific provision concerning state preemption of sampling, so local communities may pass more stringent laws or ordinances on tobacco sampling.

Operating Your Business

No person may engage in the retail sale of tobacco products, tobacco substitutes, or tobacco paraphernalia or provide a vending machine for their sale in his or her place of business without obtaining a Tobacco License for each place of business from the Department of Liquor Control by submitting a Tobacco License Application, a $110 fee, and proof of seminar attendance.

Information on seminars can be found on the Department of Liquor and Lottery’s website. Tobacco licenses expire on April 30th each year and must be renewed annually by filing the same form.

Vt. Stat. tit. 7, § 1002: License required; application; fee; issuance

Each wholesale dealer must obtain a Wholesale Cigarette and Tobacco Distributor License for each wholesale outlet from the Department of Taxes by submitting a Vermont Wholesale Cigarette and Tobacco Distributor License Application (Form CT-5). Licenses are valid as long as the licensee continues to do business at the place named unless revoked or suspended.

Vt. Stat. tit. 32, § 7731: License required

Vt. Stat. tit. 32, § 7732: Application for and issuance of a license

Vt. Stat. tit. 32, § 7735: Term of licenses

Every wholesale dealer must, on or before the 15th day of each month, file a Wholesale Tobacco Dealer Report (Form TO-641) and Schedules A and B, along with payment for taxes due. Retail dealers will also be liable for the tax on all untaxed tobacco products in their possession. 

Vt. Stat. tit. 32, § 7813: Returns and payment of tax by a distributor

Vt. Stat. tit. 32, § 7812: Liability for and collection of tax

Vermont law does not contain exemptions from the smoking ban for bars or restaurants.

Localities may require additional business licenses.

Form Type / NameForm Number / Link
Tobacco License Application: Forms for All Applications and RenewalsTobacco License Application and Renewals
Vermont Department of Taxes: Login to View FormsLogin

Political Involvement

 “Lobby” or “lobbying” means:

  • To communicate orally or in writing with any legislator or administrative official for the purpose of influencing legislative or administrative action
  • Solicitation of others to influence legislative or administrative action
  • An attempt to obtain the goodwill of a legislator or administrative official by communications or activities with that legislator or administrative official intended ultimately to influence legislative or administrative action, or­
  • Activities sponsored by an employer or lobbyist on behalf of or for the benefit of the members of an interest group, if a principal purpose of the activity is to enable such members to communicate orally with one or more legislators or administrative officials for the purpose of influencing legislative or administrative action or to obtain their goodwill

Vt. Stat. tit. 2, § 261(9)

“Lobbyist” means a person who receives or is entitled to receive, either by employment or contract, $500 or more in monetary or in-kind compensation in any calendar year for engaging in lobbying, either personally or through his or her agents, or a person who expends more than $500 on lobbying in any calendar year.

Vt. Stat. tit. 2, § 261(10)

“Employer” means any person, other than a lobbying firm, who engages the services of a lobbyist for compensation for the purpose of lobbying. A lobbyist who employs another lobbyist will be required to register and report both as an employer and a lobbyist.

Vt. Stat. tit. 2, § 261(4)

“Legislative action” means any action by a legislator with regard to introduction of a bill, resolution or amendment or with regard to any bill, resolution, amendment, report, appointment, recommendation, nomination, election, proposed or final proposed rule or other matter proposed for consideration by or pending in the general assembly or in any committee of the general assembly.

Vt. Stat. tit. 2, § 261(8)

“Administrative action” means any action taken by an administrative official or by any agency, department, division, office, board or commission of state government with regard to any proposal, drafting, development or consideration of policy, practice or rule. “Administrative action” does not include decisions of quasi-judicial boards in contested cases.

Vt. Stat. tit. 2, § 261(1)

“Expenditure” means a payment, distribution, loan, advance, deposit or gift of money or anything else of value and includes a contract, promise or agreement, whether or not legally enforceable, to make an expenditure. “Expenditure” includes sums expended in connection with lobbying, including research, consulting and other lobbying preparation and travel, meals, and lodging.

Vt. Stat. tit. 2, § 261(5)

Every lobbyist and employer must register with the Secretary of State within 48 hours of commencing lobbying activities or engaging a lobbyist. Every lobbyist and employer must pay an initial registration fee of $60, plus $15 for each additional employer represented or lobbyist engaged.

Registrations are valid from the date of filing to December 31st of the second year of a biennium, except that a registration may be made in December of an even-numbered year for the ensuing biennium.

Vt. Stat. tit. 2, § 263: Registration of lobbyists and employers; fees

Lobbyists, lobbyist employers and lobbying firms must file disclosure reports online using the Vermont Lobbying Information System, which is available on the Secretary of State’s website. Disclosure reports are due as follows:

reports duefor the preceding dates of
On or before January 15September 1 — December 31
On or before February 15January 1 — January 31
On or before March 15February 1 — the last day of February
On or before April 15March 1 — March 31
On or before May 15May 1 — May 31
On or before September 15June 1 — August 31

Vt. Stat. tit. 2, § 264: Reports of expenditures, compensation, and gifts; employers; lobbyists

All registration and periodic disclosure filings must be filed through the Vermont Lobbying Information System.

Form Type / NameForm Number / Link
Vermont Secretary of State: Lobbying HomeLobbying
Guide to Vermont’s Lobbying Registration and Disclosure Law2019 Lobbying Guide
Vermont Lobbying Information System: HomeVermont Lobbying Information System

Shipping Regulations

As of July 1, 2019, no person can cause cigarettes, roll-your-own tobacco, little cigars, or snuff, tobacco substitutes, substances containing nicotine or otherwise intended for use with a tobacco substitute, or tobacco paraphernalia, ordered or purchased by mail or through a computer network, telephonic network, or other electronic network, to be shipped to anyone other than a licensed wholesale dealer or retail dealer in this State. 

Sec. 2.  7 V.S.A. § 1010(b)

Vermont does not have any specific age verification requirements for the shipping of tobacco products. 

A distributor shall be liable for the payment of the tax on tobacco products which he or she imports or causes to be imported into the state, or which he or she manufactures in this State, and every distributor authorized by the Commissioner to make returns and pay the tax on tobacco products sold, shipped, or delivered by him or her to any person in the state, shall be liable for the collection and the payment of the tax on all tobacco products sold, shipped or delivered. 

Wholesale dealers are liable for the tax on tobacco products that: he or she imports or causes to be imported into Vermont; he or she manufactures in Vermont; or are sold, shipped, or delivered by him or her to any person in Vermont. Retail dealers will also be liable for the tax on all untaxed tobacco products in their possession.

Every distributor shall, on or before the 15th day of each month, file with the Commissioner a return on forms to be prescribed and furnished by the Commissioner, showing the quantity and wholesale price of all tobacco products sold, shipped or delivered by him or her to any person in the State during the preceding calendar month. 

Licensed wholesale dealers are required to make a true duplicate invoice showing the required record of each shipment of tobacco products.  The records shall be retained for a period of three (3) years, subject to the use and inspection of the Commissioner. The Commissioner, by regulation, may provide that whenever other tobacco products, snuff, or new smokeless tobacco are shipped into the State, the railroad company, express company, trucking company, or other carrier transporting any shipment thereof shall file with the Commissioner a copy of the freight bill within ten (10) days after the delivery in the State of each shipment. All licensed wholesale dealers shall maintain and keep for a period of three years such other records of tobacco products received, sold, or delivered within the State as may be required by the Commissioner.

The dealer is entitled to a refund of the actual amount of the tax paid if any tobacco product sold and shipped into the state have become unfit for use and consumption or unsalable or have been destroyed. 

Vt. Stat. tit. 32, § 7816: Records to be kept; examination

Vt. Stat. tit. 32, § 7813: Returns and payment of tax by a distributor

Vt. Stat. tit. 32, § 7812: Liability for and collection of tax

Vt. Stat. tit. 32, § 7819:  Refunds

Additional information about taxation in Vermont, including information about tax rates, filings, and forms, is available under the Taxation and Definitions tabs above.

Disclaimer: PCA believes the information on this site is accurate. However, tobacco laws and regulations are subject to frequent change and court interpretation. Statements above are not intended as legal advice or restatement of law. PCA does not guarantee or assume responsibility for the accuracy, completeness or timeliness of this information, nor that this information complies with all federal laws or the laws of all 50 states. Parties acknowledge and agree it is not the intention of PCA to provide specific legal advice for particular individuals, but rather to provide users with general information to better understand these issues. Users shall neither construe any of these materials as legal advice nor make this site the primary basis for any legal decisions made by or on your behalf and agree to release and waive any claims against PCA for the same. You shall consult with legal advisors concerning any contemplated individual decision.