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Subwholesaler to Retailer Cigarette Minimum Price Calculation

  1. Multiply the wholesaler to subwholesaler purchase price from your invoice by the current approved cost of doing business percentage.
  2. A fractional part of a cent equal to one-tenth of a cent or more in the result of step 1 must be rounded off to the next highest cent.
  3. Add the result from step 1 to the wholesaler to subwholesaler purchase price.
  4. The result of step 3 is the minimum price that you may sell to your licensed retailers.
Example:
$ 34.00   Purchase price per carton
x .0030   Cost of Doing Business percentage
$ .1100   (11%)   
$34.00    Purchase price per carton
+   .11     Result from step 1 (11%)
$34.11    Minimum subwholesaler to retailer selling price per carton

 



 
Links for Cigarette Sales Below Cost Act
Business Tax Types
Tobacco Tax
Tax Information
Cigarette Sales Below Cost Act
  Retailer to Consumer Cigarette Minimum Price Calculation
  Wholesalers Cigarette Cost of Doing Business
  Subwholesaler to Retailer Cigarette Minimum Price Calculation
 
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