Cigarette Inventory Tax Due Date

See Bulletin 10-26 for more information.

Inventory Tax

An inventory tax is levied on all taxable cigarettes sold, used or stored in Utah on or after July 1, 2026, for which the tax was paid at the rate in effect on June 30, 2026. The inventory tax is equal to the difference between the “old” tax rates in effect on June 30, 2026, and the “new” tax rate in effect on July 1, 2026. 

Every retailer, distributor, stamper, jobber, wholesaler or manufacturer that has cigarettes in inventory at midnight on June 30, 2026, that were taxed at the old rate, must report and pay the inventory tax on the unsold products. 

Inventory tax on products in transit between two parties is the responsibility of the legal owner during shipping. For instance, because tobacco products shipped ‘FOB origin’ belong to the buyer, the buyer must report this inventory tax. All entities holding a Utah Cigarette and Tobacco License are required to submit Form TC-563 (Cigarette Stamp Inventory Tax Report). Both the completed report and payment are due by July 31, 2026. Late filings or payments will incur penalties and interest. Form TC-563 can be accessed via TAP.