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​It is a tax on inventory of cigarette packs (both 20-count packs & 25-count packs) as of 11:59 p.m. on June 30, 2018.

​Any business that has Kentucky stamped cigarettes in inventory as of 11:59 p.m. on June 30, 2018 must file a floor stock tax return.

​The inventory count should be taken at the close of business on June 30, 2018.

​Yes. You will need to know the total number of packs of 20 cigarettes in inventory (including those in cartons) and the total number of packs of 25 cigarettes in inventory (including those in cartons).

​If you are a retail business, yes; however, you will need to provide the number of locations the return covers.

​Under the new tax law, beginning July 1, 2018, the tax rate of cigarettes increases from $0.60 to $1.10 per 20-count pack of cigarettes, and there is a proportionate tax rate increase for 25-count packs. Therefore, the floor stock tax on packs of 20 cigarettes is $0.50 and the floor stock tax on packs of 25 cigarettes is $0.625.

​The filing and first installment payment are due July 10, 2018.

​You can pay the entire tax due in full when you file the return.  However, you have the option to pay in three equal installments.  If you choose to pay the tax due over three installments, the first installment is due July 10, 2018, the second is due August 10, 2018, and the third is due on September 10, 2018. The additional installments will be made electronically through the same process as the initial filing.

​The floor stock tax return will be filed and paid electronically.  On or after July 1, 2018, you can file and pay the floor stock tax at https://floortax.ky.gov/. (The Google Chrome web browser is recommended.)

To complete the filing process, you will need to enter your sales and use tax account number along with your FEIN. 

Sample calculation:


Packs on Hand
Tax Due
​Packs of 20 cigarettes
Packs of 25 cigarettes
1,000

1,000

​$500.00
$625.00
Total Amount Due:​
Each Installment Payment Due:
$1,125.00
$375.00



​You can send an email to DOR at krc.webresponsetobaccotax@ky.gov or call us at (502) 564-6823, Option 2.

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