Nevada taxes qualifying remote cigar and pipe tobacco sales

Remote sellers must pay tax on covered cigar and pipe tobacco sales and get a license. These rules cover sellers inside or outside Nevada who remotely sell cigars or pipe tobacco to consumers in Nevada. A sale is remote if the order or delivery happens when the seller and buyer are not together in person. The tax applies only if, in the current or prior calendar year, the seller has more than $100,000 in Nevada gross receipts from these sales or makes at least 200 separate sales. The seller must file monthly sales reports, pay the tax with each report, keep sales records for at least five years, and meet license requirements, including age checks for buyers over 21. From January 1, 2026, the tax is 30 percent of actual cost, with a 30-cent minimum and 50-cent maximum for each premium cigar. From July 1, 2027, the same 30-percent tax applies to premium and other cigars and pipe tobacco, with no stated minimum or maximum for premium cigars. The rules apply for most purposes starting January 1, 2026. The tax change for premium cigars takes effect July 1, 2027.

Online sellers must check buyers’ ages using an independent, third-party service. This applies to people who sell or distribute cigarettes, tobacco, vapor, or nicotine products online to consumers in Nevada. The service must compare the buyer’s information with a commercially available database, or group of databases, regularly used for age and identity checks. Sellers must certify each year to the Attorney General that they use such a service. Knowingly selling or distributing the listed products online to someone under 21 is unlawful. This rule applies starting January 1, 2026.

The Department of Taxation receives money for staff and other costs to carry out the law. The appropriation goes to Nevada’s Department of Taxation. The money is for staff and related costs, including computer equipment, software, and overtime. Unspent funds must be returned to the State General Fund by the dates stated in the law. The appropriation takes effect July 1, 2025, and provides $206,369 for fiscal year 2025–2026 and $206,253 for fiscal year 2026–2027.