Minimum Cigarette Selling Price

If you sell cigarettes at retail, you must advertise, offer for sale, and sell the cigarettes for at least cost plus a markup.  The markup is 13 percent through June 30, 2017.  The markup is increased to 15 percent, beginning July 1, 2017.  Violation of this law is a Class C misdemeanor.  However, if you receive tobacco buydown payments from the manufacturer, you may reduce the selling price by the amount of the payment.  This is the only reduction in price that you may make.  For more information, see Important Notice 15-10  -  Minimum Markup Increase (June 2015).