Tobacco retailers in North Carolina are facing a critical deadline. According to an announcement by the North Carolina Department of Revenue, all tobacco licenses issued in 2023 will reach their expiration on June 30. Retailers must take action to ensure their licenses are renewed to continue handling non-excise-tax-paid tobacco products legally.
For renewal, the required steps are straightforward, yet missing the deadline could be costly. Retailers must submit the completed Form B-A-2R, otherwise known as the Tobacco License Renewal Application, by June 30, 2026. Additionally, they must be authorized to conduct business in North Carolina—this involves being registered with the Secretary of State—and must be in good standing with all state tax filings and payments. A bond must also be on file with the Department in an amount that sufficiently safeguards the state against missed tax payments. Retailers can find the web fillable version of Form B-A-2R on the North Carolina Department of Revenue's website, which can be submitted via email or sent by mail or fax to Tobacco Renewals in Raleigh.
The renewal process includes a mandatory compliance check, where the Department of Revenue will verify tax compliance and confirm if the necessary bonds are filed with appropriate coverage. In cases where a retailer fails the compliance check, the department may refuse the renewal application. Furthermore, renewal applications such as the Form B-A-2R that are not submitted in a timely manner will be returned unprocessed, and the taxpayer will have to submit a new application to request a license.
Retailers who miss the renewal deadline must complete the Form B-A-2, applying for individual licenses for each place of business, accompanied by the license tax payment, which can be either $10.00 or $25.00 per license. The important thing to note is, high call volumes are anticipated during this period, as many retailers rush to meet the deadline. To receive updates and notifications about tax law changes, renewal information, and educational seminars, retailers are encouraged to verify their email addresses and update their contact details on their renewal application.
Key reminders for licensees are that all Tobacco Product licenses previously issued in 2023 will indefinitely expire on June 30. To avoid any interruptions in business, a renewal application submitted before this deadline is essential. Licensees submitting Form B-A-2R by fax, email, or post before July 1, will not be subjected to a renewal fee. Retailers seeking further assistance can reach out to the Excise Tax Division at their dedicated line.
