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Sales of cigarettes to Indian nations, tribes, or reservation cigarette sellers

All packs of cigarettes sold to Indian nations, tribes or reservation cigarette sellers must have New York tax stamps affixed to them, except for sales to the Oneida Indian Nation. Wholesale dealers and agents must collect cigarette excise tax and prepaid sales tax on all cigarettes sold for resale on an Indian reservation to non-Indians and nonmembers of an Indian nation or tribe. 

Wholesale dealers and agents may sell stamped packs of cigarettes exempt from tax to Indian nations, tribes, or reservation cigarette sellers if:

  • purchasers provide Indian tax exemption coupons, or
  • they receive prior approval from the Tax Department.

The cigarettes must be delivered to the purchaser’s qualified reservation.

The Tax Department determines an annual amount of stamped tax-exempt packs of cigarettes for each of the nations or tribes. For more information, see Important Notice, N-24-1, Notice Regarding Tax-Exempt Cigarette Annual Amounts for Indian Nations or Tribes.

Indian tax exemption coupons

The governing body of an Indian nation or tribe may elect to participate in the Indian tax exemption coupon system. 

The election must be made in writing annually by August 15 for the coming 12-month period beginning September 1 and ending August 31 of the following year.

The election must include:

  • the name and title of the person making the election;
  • a statement that the person is federally recognized as a representative of the Indian nation or tribe and is duly authorized to bind the nation or tribe making the election; and 
  • a contact name, address, phone number, and email address for follow up communications. 

The election must be mailed to:

NYS Tax Department
TDAB FACCTS-Cigarette Tax Unit
W A Harriman Campus
Albany NY 12227

The Tax Department provides Indian tax exemption coupons (Form MT-215) to the governing body of an Indian nation or tribe that makes the election.

Each coupon contains the following pre-printed information:

  • the identity of the Indian nation or tribe to which it is issued;
  • the quantity of cartons of stamped packs of cigarettes for which it is issued;
  • the valid date by which the coupon must be redeemed; and
  • an assigned coupon number.

Wholesale dealers and agents must complete Part I and Part II of the coupon. Part I must be submitted when claiming a refund and Part II is kept by the dealer or agent for their records.

Prior approval

If an Indian nation or tribe did not elect to use coupons, wholesale dealers and agents must receive approval online from the Tax Department prior to selling stamped packs of cigarettes exempt from tax to an Indian nation, tribe, or a reservation cigarette seller.

Follow steps 1 through 3 to get approval from the Tax Department.

Step 1 - Request authorization

  1. Log in to (or create) your Business Online Services account.
  2. Select the ≡ Services menu in the upper-left corner of your Account Summary homepage. 
  3. Select Other taxes
  4. Select View/Report Indian Tax-Exempt Cigarette Sales. You will see a questionnaire.
  5. Select the quarter when the sale will occur. (Do not select an authorization confirmation number from the dropdown menu.)
  6. Select Continue.

Step 2 - Request quantities

In the Request quantities column, enter the number of cartons you are requesting to sell in the row containing the nation, tribe, or reservation cigarette seller's name. Then select Continue.

Step 3 - Transaction confirmation

Upon approval, you will receive an authorization confirmation number. You may proceed with the sale.

Within 48 hours of receiving the authorization confirmation number, you must make the sale and log in to your Business Online Services account to report:

  • the actual quantity of cartons sold,
  • the name and address of each purchaser, and
  • the invoice number for each sale.

You will receive a reporting confirmation number to be used when claiming a refund for the applicable taxes prepaid.

Claiming a refund

To claim a refund, complete and submit Form CG-114-E, Expedited Claim for Refund for Indian Tax-Exempt Cigarette Sales, and refer to Form CG-114-E-I, Instructions for Form CG-114-E.

If a refund is based on an Indian exemption coupon, submit Part I of the Indian exemption coupon with the name of a wholesaler or agent, the customer's name, date received, and date submitted.

If a refund is based on a prior approval from the Tax Department, enter the reporting confirmation number in the space provided on Form CG-114-E.

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