North Carolina tobacco tax increase as of September 1, 2009..

September 1, 2009 - Starting today September 1st the tax on a pack of cigarettes will increase 10 cents to 45 cents a pack. The tax rate for other tobacco products will be increased to 12.8% (from 10%) of the cost price (means the actual gross purchase price of the other tobacco products before any discounts, rebates, or allowances and before the excise tax is applied) of the product.

Every person subject to the excise tax on other tobacco products under G.S. 105-113.35 are required to pay an additional tax equal to the difference between the previous tax rate and the new tax rate on all other tobacco products held in inventory on the effective date of the tax increase. The additional tax is equal to the difference between the former tax rate of 10% of the cost price of other tobacco products and the increased tax rate of 12.8% (2.8% is the difference between the previous rate of 10% and the new rate 12.8%). The inventory and the additional tax are due to the Department of Revenue 20 days after the effective date of the increase. (Important Notice Regarding Other Tobacco Products Excise Tax Rate Increase and Tax on Inventory on Effective Date of Increase, North Carolina Department of Revenue, 8/2009)

Purchases of alcoholic beverages will also increase with a sales tax increase that varies based on the type of alcohol it is. The tax on a six-pack of beer goes up five cents.

Reference: North Carolina Sales Tax and Sin Tax Increase on September 1st, Denise Clay, Huliq News, 8/31/2009.

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