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Wholesaler's Cigarette Cost of Doing Business

Title 11 of the Commercial Law Article of the Annotated Code of Maryland provides that, in the absence of a satisfactory proof of a lesser cost, the cost of doing business is presumed to be 5% of the basic cost of cigarettes to that wholesaler.

COMAR Regulation . (see COMAR Online) provides a mechanism for a cigarette wholesaler to prove a cost of doing business that is less than 5%. The regulation further provides that the lowest approved percentage becomes the statewide benchmark for all licensed wholesalers until when and if a different percentage is approved based on the regulation.

Below is the current approved cost of doing business percentage:

Effective Date:  May 1, 2017
Percentage:  .30%

Cigarette wholesalers are strongly encouraged to use the automatic calculator below to calculate their minimum selling price. The cost of doing business percent and tax rate are automatically included in this calculator. Wholesalers may incorporate other legitimate discounts in their calculation. It is highly recommended that wholesalers using this calculator print out a copy of their completed calculation which could later be used as evidence to prove a selling cost consistent with the statute and regulation.


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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