The Texas AP-175 form is a critical application for businesses dealing with non-retail cigarette, cigar, and tobacco products in Texas. It is designed for sole owners, partnerships, corporations, and other organizations planning to engage in the manufacture, distribution, storage, or wholesale of these products within the state. Additionally, entities intending to make delivery sales or ship cigarettes as part of a delivery sale are required to submit this application. To ensure compliance with Texas laws and regulations, it is essential for relevant businesses to accurately complete and submit the Texas AP-175 form.
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The Texas Application for Non-Retailer Cigarette, Cigar and/or Tobacco Products Permit (AP-175 form) is a vital document for businesses involved in the cigarette and tobacco industry within Texas. This comprehensive application is specifically designed for entities such as sole proprietors, partnerships, corporations, and other organizations that aim to engage in the manufacture, import, wholesale, distribution, or storage of cigarette, cigar, and/or tobacco products in the state. Notably, it extends to those planning to execute delivery sales or ship cigarettes as part of a delivery sale. The form elucidates various categories of non-retailers, including bonded agents, cigarette distributors, tobacco products distributors, importers, and manufacturers, alongside their specific obligations. Additionally, it delves into the application process, detailing requirements for submitting complete and accurate information regarding the business's ownership, the legal structure, and the physical location where the sales or storage will occur. The form also outlines potential penalties and fees for non-compliance with Texas's regulatory stipulations for tobacco product sales and distribution. Essential for maintaining legal operation within the state, this application serves as a key tool for the Texas Comptroller’s office to oversee and manage the tobacco industry effectively, ensuring that all necessary taxes are collected, and that businesses comply with state laws.
Texas Application for Non-Retailer Cigarette,
Cigar and/or Tobacco Products Permit
Who Must Submit This Application – You must submit this application if:
•you are a sole owner, partnership, corporation or other organization that intends to do business in Texas;
•you intend to manufacture, import, wholesale, distribute or store any cigarette, cigar and/or tobacco products; AND
•you intend to make a delivery sale or ship cigarettes in conjunction with a delivery sale.
Definition of Non-Retailer –
Bonded Agent – any person in this state who is an agent of a person outside this state and receives cigarettes or cigars/tobacco products in interstate commerce and stores the cigarettes or cigars/tobacco products for distribution or delivery to distributors under orders from the person outside this state.
Cigarette distributor – any person who:
(a)is authorized to purchase for the purpose of making a first sale in this state cigarettes in unstamped packages from manufacturers who distribute cigarettes in this state and to stamp cigarette packages;
(b)ships, transports, imports into this state, acquires or possesses cigarettes and makes a first sale of the cigarettes in this state;
(c)manufactures or produces cigarettes; or
(d)is an importer or import broker.
Tobacco products distributor – any person who:
(a)receives tobacco products for the purpose of making a first sale in this state from a manufacturer either outside or within the state, or brings or causes to be brought into this state, tobacco products for sale, use or consumption;
(b)manufactures or produces tobacco products; or
(c)is an importer or import broker.
Importer – any person who ships, transports or imports into this state cigarettes or tobacco products manufactured or produced outside the United States for the purpose of making a first sale in this state. (An importer must obtain an annual permit from the Comptroller's office for each place of business owned or operated in Texas. There is no fee required to obtain an importer permit.)
Manufacturer – any person who manufactures or produces and sells cigarettes or tobacco products to a distributor.
Manufacturer’s Representative – any person who is employed by a manufacturer to sell or distribute the manufacturer's stamped cigarette packages or tax- paid cigars/tobacco products.
Wholesaler – Any person, including a manufacturer's representative, who sells or distributes stamped cigarette packages or tax-paid cigars/tobacco products in this state for resale, but who is not a distributor.
General Definitions –
Customs bonded warehouse – a business location under the jurisdiction of the Federal Government.
Engaged in Business – You are engaged in business in Texas if you or independent salespersons make sales, leases or rentals, or take orders for tangible personal property, or deliver tangible personal property, or perform taxable services, or have lease (personal) property, a warehouse or other location in Texas; or benefit from a location in Texas of authorized installation, servicing or repair facilities; or allow a franchisee or licensee to operate under your trade name if they are required to collect Texas tax.
First Sale – means (a) the first transfer of possession in connection with a purchase, sale or exchange for value of cigarettes or cigars/tobacco products in intrastate commerce; (b) the first use or consumption of cigarettes or cigars/tobacco products in this state; or (c) the loss of cigarettes or cigars/tobacco products in this state whether through negligence, theft or other loss.
Penalty and late fee – If you are a distributor, and you have been selling without a permit, you will need to file returns and pay tax, plus applicable penalty and interest, for the period of time that you have been in business. A $50 late fee will be assessed on each existing location that is not in compliance with permit requirements. Operating without a valid permit is punishable by a fine of not more than $2,000 per day.
Place of Business – means a commercial business location where cigarettes or cigars/tobacco products are sold, kept for sale or consumption or are otherwise stored, or a vehicle from which cigarettes or cigars/tobacco products are sold. The commercial business location where cigarettes are stored or kept cannot be a residence or a unit in a public storage facility (except for cigars and tobacco products Manufacturer's Representatives).
Delivery Sale – means a sale of cigarettes to a consumer in this state in which the purchaser submits the order for the sale by means of telephone or other method of voice transmission, by using the mail or any other delivery service, or through the Internet or another on-line service, or the cigarettes are delivered by use of the mails or another delivery service. A sale of cigarettes is a delivery sale regardless of whether the seller is located within or outside Texas. A sale of cigarettes not for personal consumption to a person who is a wholesaler or retailer is not a delivery sale.
Delivery Service – means a person, including the United States Postal Service, that is engaged in the commercial delivery of letters, packages or other containers.
Shipping Container – means a container in which cigarettes are shipped in connection with a delivery sale.
Shipping Documents – means a bill of lading, air bill, United States Postal Service form or any other document used to evidence the undertaking by a delivery service to deliver letters, packages or other containers.
For Assistance –
If you have any questions or need more information regarding this application, the cigarette tax, or the cigars and tobacco products tax, visit the Comptroller’s website at www.window.state.tx.us or call 1-800-862-2260 or 512-463-3731.
Specific Instructions
Item 1 – Sole owner - Enter first name, middle initial and last name. Partnership - Enter the legal names of the partners. Corporation/Entity - Enter the legal name exactly as it is registered with the Secretary of State.
Other organization - Enter the title of the organization.
Item 2 – Enter the complete mailing address where you want to receive mail from the Comptroller of Public Accounts.
NOTE: If you want to receive mail for other taxes at a different address, attach a letter with the other address(es).
Item 6 – If you have both a Texas taxpayer number and a Texas vendor identification number, enter only the first eleven digits of the vendor identification number.
Item 7 – If you check "Other," identify the type of organization. Example: social club, independent school district, family trust.
Item 11 – Enter all information relevant to sole ownership. For partnerships, enter the information for ALL partners. For corporations or other organizations, enter the information for the principal officers (presi- dent, vice-president, secretary, treasurer). If the applicant does not have a Social Security number, enter the individual taxpayer identification number or other number assigned by the federal government for use when filing federal income tax returns.
Item 13 – Enter the physical location address (not P.O. Box number or rural route and box number) for the commercial business location where cigarettes or cigars/tobacco products are sold, kept for sale or consumption or are otherwise stored. A lease agreement may be requested.
Item 22 – If you are an importer, enter the permit number(s) issued by the Department of Treasury, Alcohol & Tobacco Tax & Trade Bureau under 26 U.S.C. Chapter 52, to engage in the business of importing tobacco products.
AP-175-1 (Rev.2-13/15)
TAXPAYER INFORMATION
OWNERSHIP INFORMATION
AP-175-2 (Rev.2-13/15)
Texas Application for Non-Retailer
Cigarette, Cigar and/or
• Type or print.
• Do NOT write in shaded areas.
Tobacco Products Permit
Page 1
1.Legal name of owner (sole owner or partners, first name, middle initial and last name; corporation or other name)
•
2.Mailing address (street and number, P.O. Box or rural route and box number)
City
State
ZIP code
County
3.
Enter the daytime phone number of the person
Area code
Number
primarily responsible for filing tax returns
4.
Enter your Federal Employer Identification (FEI) Number, if any,
1
assigned by the United States Internal Revenue Service
3
5.If you are incorporating an existing business,
enter the taxpayer number of the existing business. .........................................................................
6.Enter your taxpayer number for reporting any Texas tax OR your Texas vendor
identification number if you now have or have ever had one. ...........................................................
7.
Indicate how your business is owned.
1 - Sole owner
2 - Partnership
3 - Texas corporation/LLC
7 - Limited partnership
6 - Foreign corporation/LLC
4 - Other (explain)
8.
If your business is a Texas entity,
File number
File date (month, day, year)
. ...................................................................enter the file number and date
9. If your business is not a Texas entity, enter home state, file number, Texas registration number and date.
Home state
Texas registration number
Registration date (month, day, year)
10. If your business is a limited partnership,
Identification number
.......................................................enter the home state and identification number
11. Complete for sole owners, general partners or principal officers of your business. (Attach additional sheets, if necessary.)
Name (first, middle initial, last)
Social Security or individual taxpayer identification number
Driver license number
Phone (area code and number)
Home address (street and number, city, state, ZIP code)
Sex
M
F
Date of birth (month, day, year)
Race
Percent of ownership or
Has this person ever been convicted
Corporate stock held ...
%
of a felony in any state?
YES
NO
Position (Check all applicable boxes.)
Sole owner
Partner
Director
Officer
Corporate stockholder
Other (specify)
Federal Privacy Act
Disclosure of your Social Security number is required and authorized under law, for the purpose of tax administration and identification of any individual affected by applicable law. 42 U.S.C. §405(c)(2)(C)(i); Tex. Govt. Code §§403.011 and 403.078. Release of information on this form in response to a public information request will be governed by the Public Information Act, Chapter 552, Government Code, and applicable federal law.
Under Ch. 559, Government Code, you are entitled to review, request and correct information we have on file about you, with limited exceptions in accordance with Ch. 552, Government Code. To request information for review or to request error correction, contact us at the address or phone number listed on this form.
AP-175-3 (Rev.2-13/15)
Page 2
12. Legal name of owner (same as Item 1)
BUSINESS LOCATION
13. Business location name
Business location address where cigarettes or cigars/tobacco products are sold, kept for sale or consumption or are otherwise stored. Address must be a commercial location. Public storage units, rural routes or P.O. Boxes are not allowed.
14. Enter the daytime phone
number of the person primarily •
responsible for the business
15.
Is this location inside the city limits?
16.
Is this location a customs bonded warehouse?
If "YES," please explain.
For Comptroller Use Only
Job name
MISCAPP
00991
8 8
Reference No.
TAX RESPONSIBILITY
17. Describe the nature of your business at this location. (Use additional sheets, if necessary.)
18.
What is the first business date that this business location will
month
day
year
conduct sales of cigarettes, cigars and/or tobacco products?
19.
Are you planning to sell cigarettes over the Internet/mail order?
If "YES," please provide your email or Web page address:
NOTE: State law requires all Internet and mail order cigarette sellers planning to deliver cigarettes to a purchaser in Texas to register their business with the state and collect all applicable state taxes and remit them to the Comptroller's office.
20.
Indicate the permit type needed for cigarettes:
Manufacturer
Wholesaler
Distributor
Bonded agent
Importer
21.
Indicate the permit type needed for other tobacco products:
22.
Provide your current Dept. of Treasury, Alcohol & Tobacco Tax & Trade Bureau (T.T.B.) permit number(s) for cigarette and/or tobacco products:
23.
Will you store unstamped cigarettes and/or tax-unpaid tobacco products for which tax is due?
If "YES," for whom will you store unstamped cigarettes and/or tax-unpaid tobacco products? (Use additional sheets, if necessary):
24.
Indicate how your company will handle sample complimentary products:
Manufacturer will stamp all complimentary cigarettes.
Manufacturer will ship to a licensed distributor who will stamp or pay the tax.
Manufacturer will pay the tax directly to the State of Texas
Not applicable: Federal military/Native American Reservation sales
for complimentary tobacco products.
25.
Will you stamp cigarettes in Texas with another state's stamp?
If "YES," please list the other states:
26.
Will you sell cigarettes, cigars and/or tobacco products from a motor vehicle?
If "YES," please complete the following (Use additional sheets or complete Form 69-122, if necessary.):
YEAR
MAKE
MODEL
LICENSE PLATE NO.
STATE
MOTOR VEHICLE ID NUMBER
IN-SERVICE DATE
27.If your place of business is a vehicle, where will business records for the vehicle(s) listed above be maintained? (Use street address or directions, city, state and ZIP code - NOT P.O. Box, rural route or public storage.) — Must be a commercial location.
28.Will you sell or store cigarettes, cigars and/or tobacco products at the location
where the records will be kept?
AP-175-4 (Rev.2-13/15)
Page 3
29. Legal name of owner (same as Item 1)
SUCCESSOR INFORMATION
If you purchased an existing business or business assets, complete Items 30-33; otherwise, skip to Item 34. 30. Enter the former owner's trade name. If known, enter the former owner's Texas taxpayer number.
Trade name
Taxpayer number of former owner
31. Enter the former owner's legal name. If known, enter the former owner's telephone number.
Legal name of former owner
Address of former owner (street and number, city, state, ZIP code)
32.Check each of the following items you purchased. (This includes the value of stock exchanged for assets.)
Inventory
Corporate stock
Equipment
Real estate
Other assets
33. Enter the purchase price of the business or assets purchased and the date of purchase.
Purchase price
Date of purchase (month, day, year)
OF NR
Former owner is
Active
OOB
SIGNATURES
The sole owner, all general partners, corporation president, vice-president, secretary or treasurer, or an
Date of application (month, day, year)
authorized representative must sign this application. Representative must submit a written power of attorney
with application. (Attach additional sheets, if necessary.)
34. I (We) declare that the information in this document and any attachments is true and correct to the best of my (our) knowledge and belief.
Type or print name and title of sole owner, partner or officer
Sole owner, partner or officer
Type or print name and title of partner or officer
Partner or officer
Your permit must be prominently displayed in your place of business.
All information provided on this form may be disclosed to the public, upon request, under the
Texas Public Information Act, Government Code, Chapter 552.
WARNING. You may be required to obtain an additional permit or license from the State of Texas or from a local governmental entity to conduct business. A listing of links relating to acquiring licenses, permits, and registrations from the State of Texas is available online at http://www.Texas.gov. You may also want to contact the municipality and county in which you will conduct business to determine any local governmental requirements.
Non-Retailer Permit Fees
(Cigarette and/or Tobacco Products Permits expire the last day of February each year.)
PERMIT TYPE
ANN. FEE
MAR.
APR.
MAY
JUNE
JULY
AUG.
SEPT.
OCT.
NOV.
DEC.*
JAN.*
FEB.*
$300.00
$275.00
$250.00
$225.00
$200.00
$175.00
$150.00
$125.00
$100.00
$75.00
$50.00
$25.00
300.00
275.00
250.00
225.00
200.00
175.00
150.00
125.00
100.00
75.00
50.00
25.00
183.33
166.67
133.33
116.67
83.33
66.67
33.33
16.67
Vehicle
15.00
13.75
12.50
11.25
10.00
8.75
7.50
6.25
5.00
3.75
2.50
1.25
NO FEE
A vehicle permit can only be purchased in addition to a Distributor, Manufacturer or Wholesaler permit. The vehicle permit fees listed above reflect the amount due per vehicle.
*During the last three months of the permit period, the Comptroller may collect the prorated fee for the current period and the fee for the next period. Add the amount in the "Annual Fee" column to the prorated amount for the applicable month. (i.e., January fee is $50.00 + annual fee of $300.00 = $350.00.)
A $50 late fee will be assessed on each existing location that is not in compliance with permit requirements. Tex. Tax Code Ann. Ch. 154 and/or Ch. 155.
Mail your completed application with the required permit fee to:
Comptroller of Public Accounts
111 E. 17th St.
Austin, TX 78774-0100
Make check payable to:
State Comptroller
Getting ready to fill out the Texas Application for Non-Retailer Cigarette, Cigar and/or Tobacco Products Permit (Form AP-175) is straightforward when you know what to expect. This document is essential for individuals or entities planning to engage in the manufacture, importation, wholesale, distribution, or storage of cigarette, cigar, and/or tobacco products in Texas. It also applies to those intending to make delivery sales or ship cigarettes in conjunction with a delivery sale in the state. Carefully follow the steps below to ensure accurate and complete submission of your application.
Once completed, remember to display your permit prominently in your place of business. Submit the form and the required fee to the Comptroller of Public Accounts at the address listed on the form. Payments should be made payable to the "State Comptroller." Ensure all information is accurate to avoid delays or issues with permit approval.
The Texas AP-175 form, also known as the Texas Application for Non-Retailer Cigarette, Cigar and/or Tobacco Products Permit, is a required document for businesses that intend to operate within Texas in the capacity of manufacturing, importing, wholesaling, distributing, or storing cigarette, cigar, and/or tobacco products. Additionally, it applies to businesses intending to engage in delivery sales or ship cigarettes as part of a delivery sale.
The following entities must submit this application:
One can apply for various permits through the AP-175 form, including:
Yes, the fees vary depending on the type of permit required. For example, the fees for a distributor or a manufacturer permit are higher compared to those for a wholesaler permit. Importers are not required to pay a fee for their permit. An annual permit fee must be paid upon application, with rates subject to change based on the business's specific needs and the timing of the application within the fiscal year.
Operating without a valid permit is considered a violation of state law and is punishable by fines up to $2,000 per day. Additionally, businesses found in non-compliance may be subject to a $50 late fee for each location operating without proper authorization.
The term "First Sale" refers to either the first transfer of possession of cigarettes or tobacco products in a transaction in Texas, the first use or consumption of these products within the state, or the loss of the products through events such as theft or negligence.
For late submissions, a $50 late fee is assessed for each location not in compliance with the permit requirements. For operating without a permit, fines can go up to $2,000 per day. Furthermore, businesses have to file returns and pay taxes, along with any applicable penalties and interest, for the period they have operated without a permit.
Applicants in need of assistance or looking for more information can visit the Comptroller's website or contact the Texas Comptroller of Public Accounts directly via phone. The state provides resources and guidance for understanding the complexities of tobacco product permits and taxation.
Not providing complete legal names for all types of ownership can lead to a delay in processing. For a sole owner, the full name must be entered, including first name, middle initial, and last name. Partnerships should list the legal names of all partners, while corporations and other entities must enter their name as registered with the Secretary of State. This specificity ensures clarity about the entity’s legal identity.
Failing to enter a complete mailing address for receiving correspondence from the Comptroller of Public Accounts can result in missed communications. It is crucial to include the street and number, P.O. Box or rural route and box number, city, state, ZIP code, and county to ensure all mail is accurately and promptly received.
Overlooking the inclusion of both Texas taxpayer number and Texas vendor identification number, when applicable, can cause unnecessary confusion. If both numbers exist, only the first eleven digits of the vendor identification number should be entered, harmonizing the state’s records with your submission.
Incorrectly identifying the type of organization by checking the wrong box or leaving the section blank can lead to inaccuracies in the permit. If "Other" is selected, the specific type of organization, such as a social club or independent school district, must be clearly identified to avoid any ambiguity regarding the nature of the business.
Omitting the physical location address of the commercial business location, or incorrectly using a P.O. Box number, can invalidate the application. The address must be a commercial location where the cigarettes or cigars/tobacco products are sold, stored for sale, or consumed. Accuracy in this detail ensures the proper assessment of taxes and compliance with state laws.
Forgetting to enter permit number(s) issued by the Department of Treasury, Alcohol & Tobacco Tax & Trade Bureau for importers is a common oversight. This information is crucial for verifying the legal importation and distribution of tobacco products within the state.
Not fully completing the ownership information section can delay verification processes. Whether you’re a sole owner, part of a partnership, or represent a corporation, all relevant details including social security numbers, driver’s license numbers, and percentages of ownership must be thoroughly filled out. Without this, the state cannot effectively evaluate the legal and financial aspects of the application.
Leaving the business nature and operation details vague or incomplete, such as not specifying whether you plan to sell cigarettes over the Internet or mail order, can result in the application being paused for clarification. State law has specific requirements for businesses that operate in these manners, and full disclosure is necessary for compliance.
Finally, not prominently displaying the permit in the place of business, as required, can lead to penalties. Although this is more of a post-approval action, understanding and complying with this requirement from the outset ensures the business stays in good standing.
When filling out the AP-175 form, being meticulous and providing all requested details accurately ensures a smoother application process. Moreover, it facilitates compliance with Texas laws governing the sale and distribution of cigarette, cigar, and tobacco products.
Completing the Texas AP-175 form is a crucial step for businesses involved in the cigarette, cigar, and/or tobacco products industry in Texas. However, it's equally important to be aware of other forms and documents that may need to be accompanied or submitted in conjunction with the AP-175 form. By having a comprehensive understanding of these additional requirements, businesses can ensure a smoother process and compliance with all state regulations.
Each document plays a pivotal role in ensuring that businesses comply with Texas state laws regarding the sale and distribution of tobacco products. Whether it involves applying for the correct sales and use tax permit, reporting monthly manufacturing activities, or providing security for tax compliance, these forms encompass the broad spectrum of regulatory requirements. It's essential for businesses to familiarize themselves with these forms, complete them accurately, and submit them in a timely manner to avoid penalties and ensure the continued operation of their business within Texas.
The Texas AP 175 form is closely related to the Texas Mixed Beverage Gross Receipts Tax Return. Both require detailed business information, including type of ownership, business addresses, and identification numbers. Similarly, they are necessary for businesses to operate in compliance with Texas state laws, specifically concerning tax obligations related to their industry.
Like the Federal Alcohol Dealer Registration, the Texas AP 175 form is essential for businesses involved in selling regulated substances. Both documents help regulate industries by requiring businesses to register and adhere to specific standards. However, the Texas form focuses on tobacco products within the state, highlighting the collaboration between federal and state regulations.
The Application for Tobacco Retailer License is another document resembling the Texas AP 175 form in purpose. They both aim at regulating the sale of tobacco products but from different perspectives. While the former is often more focused on the retail aspect, the latter encompasses a broader scope including manufacturing, importing, and distributing within the state of Texas.
The Texas Sales and Use Tax Permit Application shares similarities with the AP 175 form because both are prerequisites for operating certain types of businesses within Texas. These documents ensure that businesses are properly registered with the state and are liable for tax collection and remittance related to their sales activities.
Comparable to the Texas AP 175 form is the Federal Basic Permit under the Alcohol and Tobacco Tax and Trade Bureau (TTB). Both serve as a checkpoint for businesses to legally engage in activities related to alcohol or tobacco. The primary difference lies in their jurisdiction, with one focusing on state-level permits and the other on federal regulations.
The Texas AP 175 form can be likened to the Seller’s Permit (also known as a vendor's license) required in many states. Both permits allow businesses to legally sell specific products—in this case, tobacco—and collect sales tax on behalf of the state. They are fundamental for compliance with state tax laws.
The ATF Form 7 (Application for Federal Firearms License) parallels the Texas AP 175 in the sense that both are regulatory forms targeted towards specific products that require monitoring. While the ATF Form 7 deals with firearms, the AP 175 is concerned with tobacco products, showing how different sectors are regulated under the law.
Similarly, the Texas Application for Motor Fuel Tax Permit shares its essence with the AP 175 form. Both documents are necessary for the lawful operation of businesses that deal with regulated products, ensuring that the businesses contribute to the state’s tax revenues appropriately.
The Texas Certificate of Franchise Authority is analogous to the Texas AP 175 form by establishing a business’s legitimacy in a specialized area. While the Certificate of Franchise Authority relates to utility services, the AP 175 validates businesses dealing with tobacco products, underlining the diverse range of business activities regulated at the state level.
The Federal Employer Identification Number (EIN) Application also shares a common purpose with the Texas AP 175 form. Both are initial steps in establishing a business’s formal presence and readiness to comply with tax obligations—whether it be federal taxes in the case of the EIN or state-level taxes and regulations for tobacco products with the AP 175.
Last is the Texas Liquor License Application, which is quite similar to the Texas AP 175 form as both involve applying for permission to deal with regulated substances. They ensure that businesses engaging in the sale of either alcohol or tobacco operate within the frameworks set by state law to maintain public health and safety.
When it comes to filling out the Texas Application for Non-Retailer Cigarette, Cigar and/or Tobacco Products Permit (AP-175 form), navigating the process correctly is crucial for ensuring your application is accepted without delay. Here are some important dos and don'ts to help guide you through filling out the form effectively:
By following these tips, you can streamline your application process and help ensure that your business complies with Texas regulations for non-retailer cigarette, cigar, and tobacco product permits.
One common misconception is that the Texas AP-175 form is only for businesses physically located in Texas. However, the requirement to submit this application extends to any sole owner, partnership, corporation, or other organization that intends to do business in Texas, engage in manufacturing, importing, wholesaling, distributing, storing any cigarette, cigar, or tobacco products, and intends to make a delivery sale or ship cigarettes in conjunction with a delivery sale, regardless of their physical location.
Another misconception is that only businesses selling tobacco products to consumers need to file the AP-175 form. In fact, the form must be completed by a range of non-retailer entities, including those involved in the first sale within the state, bonded agents, cigarette distributors, tobacco products distributors, importers, and manufacturers, not just those making direct sales to consumers.
Many believe that there's a fee to obtain an importer permit. The AP-175 instructions clarify that there is no fee required to obtain an importer permit for businesses intending to ship, transport, or import into Texas cigarettes or tobacco products manufactured outside the United States for the purpose of making a first sale in the state.
Some think that the permit once obtained does not need to be prominently displayed. The instructions emphasize that your permit must be prominently displayed in your place of business, underscoring the importance of transparency and compliance with regulatory requirements.
It's wrongly assumed by some that if you only sell cigarettes, a tobacco products permit is not needed, or vice versa. However, the AP-175 form makes it clear that separate permits may be required for cigarettes, cigars, and other tobacco products, depending on the nature of your business operations in Texas. The type of permit needed — whether as a manufacturer, wholesaler, distributor, bonded agent, or importer — depends on the specific products you handle.
Lastly, a misconception exists that the application process is entirely online. While the Comptroller’s website offers extensive information and assistance, and some steps can be initiated online, the application form itself must be completed and mailed along with the required permit fee to the address provided by the Texas Comptroller of Public Accounts. This step is critical for compliance and to avoid delays in processing.
When applying for a Texas AP-175 permit for non-retail cigarette, cigar, and/or tobacco products operations, understanding the application process is crucial. Below are six key takeaways that applicants should note:
Applicants seeking assistance or more information on the cigarette tax or cigars and tobacco products tax can visit the Comptroller’s website or call the provided phone numbers. This support can be critical in navigating the application process successfully.
Completing the AP-175 form requires attention to detail, especially regarding legal names, proper addresses, and specific operation types. Properly displaying your permit at your place of business and ensuring all information is accurate can avoid potential complications.
Payroll Tax Form - How to identify and report the specific type of business ownership to the Texas Workforce Commission.
How to Fill Out Texas Sales and Use Tax Resale Certificate - Further sections require information about physical business locations within Texas to calculate applicable taxes and fees.