Tobacco Industry: Now You Can Pay Special Occupational Tax Online

Posted 06/19/2020 by the Office of Communications

Just in time for the July 1 due date, we’ve launched online filing for Special Occupational Tax (SOT) using our existing Permits Online system.

If you have signature authority for your company and already have a user account in Permits Online, you may log on at any time and select the Special Occupational Tax option on the first screen. 

If you don’t have a user account, it’s easy to self-register.  After you log on, you might also have to Request to have Records Linked to Your Account before you can file the Special Tax Registration and Return.

Background

Manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and proprietors of tobacco export warehouses must pay Special Occupational Tax (SOT) as soon as they commence operations and annually thereafter.

The SOT tax year runs from July 1 through the next June 30. The full tax is due at the beginning of each tax period.  The tax is prorated the first year if operations begin after the month of July.

The tax rate is $1,000 per year.  There is a reduced rate of $500 for smaller proprietors. See 27 CFR 40.32 (tobacco products), 27 CFR 40.372 (papers and tubes), or 27 CFR 44.32 (export warehouse) to determine which rate applies to your operations.

Questions

If you have any questions about how to pay SOT online, call 877-882-3277 or use our online contact form.