Instructions for Form M-110 - Cigarette and Tobacco Products Tax Return

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Clear Form
INSTRUCTIONS
STATE OF HAWAII—DEPARTMENT OF TAXATION
FORM M-110
INSTRUCTIONS FOR FORM M-110
(REV. 2018)
CIGARETTE AND TOBACCO PRODUCTS TAX RETURN
General Instructions
The official U.S. Post Office cancellation mark will be considered
primary evidence of the date of filing of tax documents and payments.
Form M-110 is used to report and pay the cigarette and tobacco taxes
Hawaii has adopted the Internal Revenue Code provision to allow
monthly on the imports of cigarettes and tobacco products.
documents and payments delivered by a designated private delivery
service to qualify for the “timely mailing treated as timely filing/paying rule.”
Cigarette Tax
The Department of Taxation will conform to the Internal Revenue Service
Section 245-3, HRS, imposes the cigarette tax at the rate of $.16 per
listing of designated private delivery services and type of delivery services
cigarette for sales, use, or possession of cigarettes on and after July 1, 2011.
qualifying for the “timely mailing treated as timely filing/paying rule.” Timely
filing of mail which does not bear a U.S. Post Office cancellation mark will
Tobacco Tax
be determined by reference to other competent evidence.
Section 245-3, HRS, imposes the tobacco tax as follows:
Where to File
For sales, use, or possession of tobacco products (other than cigarettes,
File Form M-110 and your payment to:
large cigars, and little cigars) on and after September 30, 2009, the tax
is imposed at the rate of 70% of the wholesale price of the tobacco
Hawaii Department of Taxation
products.
P. O. Box 259
Honolulu, HI 96809-0259
For sales, use, or possession of large cigars of any length on and
after September 30, 2009, the tax is imposed at the rate of 50% of the
Where To Get Forms, Instructions, and Publications
wholesale price of the large cigars.
Forms, publications, and other documents, such as copies of Tax
For sales, use, or possession of little cigars on and after July 1, 2011, the
Information Releases and Administrative Rules issued by the Department,
tax is imposed at the rate of $.16 per little cigar.
are available on the Department’s website at tax.hawaii.gov or you may
contact a customer service representative at:
Definition of Certain Terms Used in Chapter 245, HRS
Voice:
808-587-4242
“Cigarette” means any roll for smoking made wholly or in part
1-800-222-3229 (Toll-Free)
of tobacco, irrespective of the size and shape and whether or not the
Telephone for the Hearing Impaired:
tobacco is flavored, adulterated, or mixed with any other ingredient, the
wrapper or cover of which is made of paper or any other substance or
808-587-1418
material except tobacco.
1-800-887-8974 (Toll-Free)
“Large cigar” means any roll for smoking made wholly or in part of
Fax:
808-587-1488
tobacco if such product is wrapped in any substance containing tobacco
E-mail: Taxpayer.Services@hawaii.gov
and weighs more than four pounds per thousand.
Mail:
Taxpayer Services Branch
“Little cigar” means any roll for smoking made wholly or in part of
P. O. Box 259
tobacco if such product is wrapped in any substance containing tobacco,
Honolulu, HI 96809-0259
other than natural leaf tobacco, and weighs not more than four pounds
per thousand rolls.
Penalty and Interest
“Tobacco products” means tobacco in any form other than cigarettes
Late Filing of Return –– The penalty for failure to file a return on time
or little cigars, that is prepared or intended for consumption or for personal
is assessed on the tax due at a rate of 5% per month, or part of a month,
use by humans, including large cigars and any substitutes thereof other
up to a maximum of 25%.
than cigarettes that bear the semblance thereof, snuff, chewing or
smokeless tobacco, and smoking or pipe tobacco.
Failure to Pay Tax After Filing Timely Return –– The penalty for
failure to pay the tax after filing a timely return is 20% of the tax unpaid
“Use” means the exercise of any right or power incident to ownership
within 60 days of the prescribed due date.
or possession, other than the sale, or the keeping or retention for the
purpose of sale.
Interest –– Interest at the rate of 2/3 of 1% per month or part of a
month shall be assessed on unpaid taxes and penalties beginning with
“Wholesale price,” in addition to any other meaning of the term,
the first calendar day after the date prescribed for payment, whether or not
means in the case of a tax upon the use of tobacco products, or upon
that first calendar day falls on a Saturday, Sunday, or legal holiday.
a sale not made at wholesale: (1) If made by a person who during the
month preceding the accrual of the tax made substantial sales to retailers
Signature
of like tobacco products, the average price of the sales, and (2) If made
by any other person, the average price of sales to retailers of like tobacco
The return must be signed and dated by a person who is authorized
products made by other taxpayers in the same county during the month
to sign Form M-110.
preceding the accrual of the tax.
Change of Address
Who Must File
If your mailing address changes, you must notify the Department of the
change by completing Form ITPS-COA, Change of Address Form. Failure
Unlicensed individuals who import cigarettes and/or tobacco products
to do so may prevent your address from being updated, any refund due to
for personal use from an unlicensed seller located outside of Hawaii must
you from being delivered (the U.S. Postal Service is not permitted to forward
file Form M-110. “Unlicensed” means that the person or seller does not
your State refund check), and delay important notices or correspondence to
have a Hawaii cigarette tax and tobacco tax license. For example, if you
you regarding your return.
are an individual and you buy cigarettes or tobacco products online or
through a catalog from an unlicensed seller located outside of Hawaii and
Specific Instructions
import those products into Hawaii for your own use, then you are required
to report and pay the cigarette and tobacco taxes on those products.
Line (3) –– Enter the wholesale value of tobacco products imported for use.
If you are required to file Form M-110, you must also file Form G-26,
Line (5) –– Enter the wholesale value of large cigars imported for use.
Use Tax Return, to report and pay the use tax on cigarettes and tobacco
Line (11) –– Attach your check or money order for this amount payable
products imported for consumption. See the discussion on page 2.
to “Hawaii State Tax Collector” in U.S. dollars drawn on any U.S. bank to
Form M-110. Write “M-110” and the filing period on your check or money
When to File
order. DO NOT SEND CASH.
Form M-110 must be filed on or before the 20th day of each month,
showing the cigarettes and tobacco products imported into Hawaii during
the preceding calendar month. If the due date falls on a Saturday, Sunday,
or legal holiday, file by the next regular workday.
Clear Form
INSTRUCTIONS
STATE OF HAWAII—DEPARTMENT OF TAXATION
FORM M-110
INSTRUCTIONS FOR FORM M-110
(REV. 2018)
CIGARETTE AND TOBACCO PRODUCTS TAX RETURN
General Instructions
The official U.S. Post Office cancellation mark will be considered
primary evidence of the date of filing of tax documents and payments.
Form M-110 is used to report and pay the cigarette and tobacco taxes
Hawaii has adopted the Internal Revenue Code provision to allow
monthly on the imports of cigarettes and tobacco products.
documents and payments delivered by a designated private delivery
service to qualify for the “timely mailing treated as timely filing/paying rule.”
Cigarette Tax
The Department of Taxation will conform to the Internal Revenue Service
Section 245-3, HRS, imposes the cigarette tax at the rate of $.16 per
listing of designated private delivery services and type of delivery services
cigarette for sales, use, or possession of cigarettes on and after July 1, 2011.
qualifying for the “timely mailing treated as timely filing/paying rule.” Timely
filing of mail which does not bear a U.S. Post Office cancellation mark will
Tobacco Tax
be determined by reference to other competent evidence.
Section 245-3, HRS, imposes the tobacco tax as follows:
Where to File
For sales, use, or possession of tobacco products (other than cigarettes,
File Form M-110 and your payment to:
large cigars, and little cigars) on and after September 30, 2009, the tax
is imposed at the rate of 70% of the wholesale price of the tobacco
Hawaii Department of Taxation
products.
P. O. Box 259
Honolulu, HI 96809-0259
For sales, use, or possession of large cigars of any length on and
after September 30, 2009, the tax is imposed at the rate of 50% of the
Where To Get Forms, Instructions, and Publications
wholesale price of the large cigars.
Forms, publications, and other documents, such as copies of Tax
For sales, use, or possession of little cigars on and after July 1, 2011, the
Information Releases and Administrative Rules issued by the Department,
tax is imposed at the rate of $.16 per little cigar.
are available on the Department’s website at tax.hawaii.gov or you may
contact a customer service representative at:
Definition of Certain Terms Used in Chapter 245, HRS
Voice:
808-587-4242
“Cigarette” means any roll for smoking made wholly or in part
1-800-222-3229 (Toll-Free)
of tobacco, irrespective of the size and shape and whether or not the
Telephone for the Hearing Impaired:
tobacco is flavored, adulterated, or mixed with any other ingredient, the
wrapper or cover of which is made of paper or any other substance or
808-587-1418
material except tobacco.
1-800-887-8974 (Toll-Free)
“Large cigar” means any roll for smoking made wholly or in part of
Fax:
808-587-1488
tobacco if such product is wrapped in any substance containing tobacco
E-mail: Taxpayer.Services@hawaii.gov
and weighs more than four pounds per thousand.
Mail:
Taxpayer Services Branch
“Little cigar” means any roll for smoking made wholly or in part of
P. O. Box 259
tobacco if such product is wrapped in any substance containing tobacco,
Honolulu, HI 96809-0259
other than natural leaf tobacco, and weighs not more than four pounds
per thousand rolls.
Penalty and Interest
“Tobacco products” means tobacco in any form other than cigarettes
Late Filing of Return –– The penalty for failure to file a return on time
or little cigars, that is prepared or intended for consumption or for personal
is assessed on the tax due at a rate of 5% per month, or part of a month,
use by humans, including large cigars and any substitutes thereof other
up to a maximum of 25%.
than cigarettes that bear the semblance thereof, snuff, chewing or
smokeless tobacco, and smoking or pipe tobacco.
Failure to Pay Tax After Filing Timely Return –– The penalty for
failure to pay the tax after filing a timely return is 20% of the tax unpaid
“Use” means the exercise of any right or power incident to ownership
within 60 days of the prescribed due date.
or possession, other than the sale, or the keeping or retention for the
purpose of sale.
Interest –– Interest at the rate of 2/3 of 1% per month or part of a
month shall be assessed on unpaid taxes and penalties beginning with
“Wholesale price,” in addition to any other meaning of the term,
the first calendar day after the date prescribed for payment, whether or not
means in the case of a tax upon the use of tobacco products, or upon
that first calendar day falls on a Saturday, Sunday, or legal holiday.
a sale not made at wholesale: (1) If made by a person who during the
month preceding the accrual of the tax made substantial sales to retailers
Signature
of like tobacco products, the average price of the sales, and (2) If made
by any other person, the average price of sales to retailers of like tobacco
The return must be signed and dated by a person who is authorized
products made by other taxpayers in the same county during the month
to sign Form M-110.
preceding the accrual of the tax.
Change of Address
Who Must File
If your mailing address changes, you must notify the Department of the
change by completing Form ITPS-COA, Change of Address Form. Failure
Unlicensed individuals who import cigarettes and/or tobacco products
to do so may prevent your address from being updated, any refund due to
for personal use from an unlicensed seller located outside of Hawaii must
you from being delivered (the U.S. Postal Service is not permitted to forward
file Form M-110. “Unlicensed” means that the person or seller does not
your State refund check), and delay important notices or correspondence to
have a Hawaii cigarette tax and tobacco tax license. For example, if you
you regarding your return.
are an individual and you buy cigarettes or tobacco products online or
through a catalog from an unlicensed seller located outside of Hawaii and
Specific Instructions
import those products into Hawaii for your own use, then you are required
to report and pay the cigarette and tobacco taxes on those products.
Line (3) –– Enter the wholesale value of tobacco products imported for use.
If you are required to file Form M-110, you must also file Form G-26,
Line (5) –– Enter the wholesale value of large cigars imported for use.
Use Tax Return, to report and pay the use tax on cigarettes and tobacco
Line (11) –– Attach your check or money order for this amount payable
products imported for consumption. See the discussion on page 2.
to “Hawaii State Tax Collector” in U.S. dollars drawn on any U.S. bank to
Form M-110. Write “M-110” and the filing period on your check or money
When to File
order. DO NOT SEND CASH.
Form M-110 must be filed on or before the 20th day of each month,
showing the cigarettes and tobacco products imported into Hawaii during
the preceding calendar month. If the due date falls on a Saturday, Sunday,
or legal holiday, file by the next regular workday.
INSTRUCTIONS
FORM M-110
(REV. 2018)
PAGE 2
Use Tax (To be reported on Form G-26)
Form G-26, Line (e) –– Enter the landed value of cigarettes and
tobacco products imported into counties imposing a county surcharge.
Chapter 238, HRS, levies the use tax on the landed value of tangible
Section 238-2.6, HRS, allows a county in Hawaii to impose a county
personal property, services, or contracting that are imported into
surcharge on state tax of not more than 0.5% of the value of property and
Hawaii, regardless if at the time of importation, the property, services, or
services taxable under chapter 238, HRS, that is imported from out-of-
contracting is owned by the importer, purchased from a seller that does
state into a county imposing the tax.
not have a general excise tax license, or however acquired, and used in
Form G-26, Line (k) –– Section 238-3(i), HRS, allows a credit against
the State.
the Hawaii use tax for the combined amount of sales or use taxes imposed
“Landed value” means the value of imported cigarettes and tobacco
by and paid to another state (or any subdivision thereof) on tangible
products which is the fair and reasonable cash value of the cigarettes and
personal property, services or contracting before it is imported into
tobacco products when they are received by the purchaser in Hawaii. It
Hawaii. Accordingly, a taxpayer may receive a credit up to the amount of
includes the purchase price, shipping and handling fees, insurance costs,
Hawaii use tax due (4% of the landed value of the cigarettes and tobacco
and customs duty. It does not include sales tax paid to another state.
products plus the amount of any county surcharge) for any sales or use
For more information about the Hawaii Use Tax, refer to the following
taxes paid by the taxpayer to another state upon the purchase or use of
Department of Taxation publications: Tax Facts No. 95-1 and An
the cigarettes and tobacco products. The calculation of the credit shall
Introduction to the Use Tax brochure.
not include any other taxes paid to other states. The amount of credit
also shall not exceed the amount of use tax imposed by Hawaii on the
These publications may be viewed at our website: tax.hawaii.gov.
cigarettes and tobacco products.
Use Form G-26, Use Tax Return, to report and pay the use tax
Form G-26, Line (n) –– Attach your check or money order for this
monthly on the imports of cigarettes and tobacco products. The following
amount payable to “Hawaii State Tax Collector” in U.S. dollars drawn on
instructions are numbered to correspond to the line items of Form G-26.
any U.S. bank to Form G-26.
Form G-26, Line (a) –– Use the Worksheet below to calculate the
landed value of cigarettes and tobacco products imported into Hawaii.
USE TAX COMPUTATION WORKSHEET FOR LANDED VALUE OF CIGARETTES AND TOBACCO PRODUCTS
1. Cost of the cigarettes and tobacco products. (Usually the invoice price paid by the
purchaser, including any retail sales tax paid to another state or local government.) ..........
2. Freight charges. ..................................................................................................................
3. Insurance costs. ..................................................................................................................
4. Customs duty (if any). .........................................................................................................
5. Any other charges incident to landing the cigarettes and tobacco products in Hawaii. ........
6. Total costs. (Add lines 1 through 5.) ......................................................................................................................
7. Retail sales tax paid to another state or local government. .................................................
8. Other adjustments. (Attach schedule) ..................................................................................
9. Add line 7 and line 8. .............................................................................................................................................
10. Landed value of cigarettes and tobacco products. (Line 6 minus line 9.) Enter here
and on Form G-26, column (a). .............................................................................................................................

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