Licensing and Regulatory

Cigarette Tax Stamps

I. POLICY

The Licensing and Registration section of the Field Enforcement Bureau is responsible for the distribution of cigarette tax stamps to in-state and out of state vendors. Cigarette tax stamps shall be purchased from the Comptroller of Maryland by direct debit, bond, or certified funds submitted with tax stamp request form 623. The stamps are purchased by cigarette wholesalers licensed to affix them to the bottom of each cigarette pack offered for sale in Maryland as evidence the excise tax has been paid. Cigarette tax stamps must be held in a secure storage area behind two locked doors within the Comptroller facility, pending sale.

II. INVENTORY CONTROL

RAD Basement Room B-10 Cigarette Stamp Locker – The FEB Agent In-Charge and the FEB Office Administrator are authorized key holders to access the cigarette stamp locker. One of the authorized key holders will be available on any business day to allow access to the stamp locker. Any entry to the stamp locker whether for stamp delivery, removal, or inventory requires another Comptroller employee present as a witness. The stamp locker must never be accessed alone. Any entry will be logged into the locker entry log to include the date, time, reason for entry, stamp number sequence range of case numbers removed or delivered, and name of all personnel present.

Stamp Deliveries and Requisitions – Stamp cases will be stacked sequentially according to the manufacturers’ handwritten digits on each case and kept with others from the same delivery batch. Stamp case removal is to be done sequentially. Removal of the first case of a new batch will not be done until the last case of the previous batch has been removed. Once the delivery or requisition of stamps occurs, a cigarette stamp requisition form is completed, signed, and witnessed. The form is then logged and filed by the FEB Office Administrator for purposes of tracking.

LLG 306-A Stamp Room Stock – Room 306-A stamp room access is limited to Licensing & Registration Manager, Supervisor, and Associate. One of these personnel must be working on any given business day to access and prepare stamps for sale. This room should never be left unlocked while unattended. The 306-A stamp room should only be unlocked and opened while removing, replenishing, or inventorying stamps. Inventory replenishment for this room will be made by the Licensing & Registration Supervisor. This room is to hold no more than 20 cases of tax stamps.

Stamp Destruction – At the end of each month prior to monthly stamp inventory, the FEB Regulatory & Licensing Manager and a Comptroller witness must verify and destroy stamps that have been returned for credit.

Stamp Inventory – An inventory of all stamps must be performed at the end of each month prior to resuming sales the following month. Inventory is performed by the Office Administrator and a Comptroller witness. Month end stamp figures are compared to monthly sales, deliveries, and destructions for accuracy. These records of reconciliation are maintained and monitored by the FEB Office Administrator.

Re-ordering Back Stock of Stamps – The Licensing & Registration Manager will notify the Office Administrator to place an order for re-supply of tax stamps from the vendor. Orders must be placed before depletion of stock and delivery time of approximately one month must be considered when placing stamp orders.

III. STANDARD OPERATING PROCEDURES

Standard Operating Procedures (SOP) for cigarette tax stamps are located on the FEB network drive in the SOP folder.

IV. CANCELLATION

None.

The following regulations govern cigarette tax stamps:

  • Tax General, Title 12-102 through 104.
  • Code of Maryland Regulations (COMAR) 03.02.02.01 through 05.