Brief Overview of the Tobacco Licensing & Sales in New York

  • Who is a Cigarette Retail Dealer?
  • Obtaining a New York Tobacco Retail Dealer License
      • DCA Basic License Application
      • Submission of certificates and affidavits to the DCA
      • NYS Department of Taxation & Finance Retail Dealer Certificate of Registration
      • Photo ID
      • Business address and home address
      • DCA License Fee
  • The Most Common Violations with Respect to the Sale of Tobacco
      • Sale of tobacco products to minors
      • Failing to post the required tobacco notice
      • Sale of bidis to minors
      • Failure to post the required bidis notice
      • Sale of tobacco not in its original packaging
      • Underage employees handling tobacco products without supervision
      • Tobacco vending machines in a prohibited public place
      • Sale of tobacco after a NYS tobacco registration has been suspended/revoked
  • Penalties for Violations of the New York Tobacco Laws and Regulations
      • What happens if I am sent a Tobacco Product violation notice?
      • Two or more violations of the NYC Administrative Code in regards to tobacco sales
      • Penalties for selling tobacco to a minor
      • The “Point” System

Who is a Cigarette Retail Dealer?

Any individual who sells cigarettes is considered a “cigarette retail dealer.” If an individual owns or transports 5,000 or more cigarettes at one time (as long as he/she is not a cigarette manufacturer or wholesale dealer), he/she is also considered a cigarette retail dealer. However, in order to sell cigarettes legally in New York City, the individual must obtain a DCA license.

Obtaining a New York Tobacco Retail Dealer License

In order to attain a New York Tobacco Retail Dealer License, a business must successfully complete and file a great deal of paperwork with agencies like the DCA and the NYS Department of Taxation and Finance. To help you navigate this maze of red tape, Portela & Associates will ensure that all of the state’s licensing procedures are fulfilled in a quick and efficient manner.

There are numerous requirements that a business must meet in order to obtain a New York Tobacco Retail Dealer License:

  • Completion of a DCA Basic License Application.
  • Information required in the application : Business address, telephone number, Federal Employer ID number, New York State Sales Tax ID number.
  • Corporations & Partnerships : Must submit the personal information of all corporate officers, partners, and/or shareholders.
  • Basic questions asked in the application : Any prior DCA licenses? Any prior crimes or offenses? Any pending criminal or civil charges? Any prior DCA violations or judgments not in your favor?
  • NOTE : For most of the questions asked in the DCA, a “YES” response to a question means that the applicant has to submit (with the license application) a signed explanation for such a response.
  • Submission of certain certificates and affidavits to the DCA.
  • Individually-owned businesses : Must submit a copy of your Business Certificate, after it has been notarized by the County Clerk of the borough in which your business is situated; ALSO must submit a notarized Child Support Certification form.
  • Partnership businesses : Must submit a copy of your Partnership Certificate, after it has been notarized by the County Clerk of the borough in which your business is situated; ALSO must submit a notarized Child Support Certification form.
  • Corporate businesses : Must submit a Certificate of Incorporation or a filing receipt, after it has been stamped by the New York State Secretary of State.
  • ALL businesses : Must submit an affidavit of acknowledgement and understanding of the law and rules of tobacco sales and distribution.
  • Possession of a current NYS Department of Taxation and Finance Retail Dealer Certificate of Registration for Cigarettes.
  • If one does not have such a certificate, he/she must obtain, fill out, and file an application form (DTF-716) from the Department of Taxation and Finance.
  • NOTE : In order to sell cigarettes or tobacco products, businesses MUST also be registered for New York State sales tax.
  • Businesses that simply need to renew their Certificate of Registration for Cigarettes may obtain, fill out, and file a renewal application form (DTF-719) with the Department of Taxation and Finance.
  • Possession of a photo I.D.
  • Acceptable forms of photo I.D.: Driver’s license or a non-driver’s ID from a state DMV; a government agency license/permit; passports; green cards; employee ID cards (for city, state, or federal employees)
  • Proof of the business address AND the owner’s current home address.
  • Recent utility bills, the current lease/deed of the business, and the current rent/mortgage bill can prove a business address.
  • Recent utility bills, the current lease/deed of the business, the current rent/mortgage bill, and a driver’s license can prove a home address.
  • NOTE : AT LEAST two (2) of the above-mentioned items are needed to prove an address.
  • Payment of the License Fee
  • Prices of a DCA License range from $30 to $110, depending on when the application is filed.

The Most Common Violations With Respect to the Sale of Tobacco

This is a list of the most common violations of the New York City Administrative Code and the New York State Public Health Law when it comes to the sale and distribution of tobacco products:

  • The sale of tobacco products, which includes herbal cigarettes, rolling papers and pipes, to an individual under the age of eighteen (18).
  • Falls under NYC Administrative Code 17-620 and NYS Public Health Law Section 1399-cc(1).
  • To determine a customer’s age, a business owner can ask for the individual’s driver’s license or another form of government-issued ID. College-issued IDs are NOT acceptable forms of ID to determine a customer’s age.
  • NOTE: The NYC Administrative Code states that a business cannot use the claim that the minor who purchased the tobacco product appeared to look over the age of twenty-five (25) as a defense against this violation.
  • The failure to clearly post the required tobacco notice.
  • Falls under NYC Administrative Code 17-620 and NYS Public Health Law Section 1399-cc(1).
  • The sign must read “SALE OF CIGARETTES, CIGARS, CHEWING TOBACCO, POWDERED TOBACCO, OR OTHER TOBACCO PRODUCTS, ROLLING PAPERS OR PIPES, TO PERSONS UNDER EIGHTEEN YEARS OF AGE IS PROHIBITED BY LAW .”
  • NOTE: The letters of the sign must be RED , and the letters must be against a WHITE background.
  • The sale of bidis to an individual under the age of eighteen (18).
  • Falls under NYS Public Health Law Section 1399-ll(2)(b).
  • NOTE : Unless a business is a retail tobacco business, the sale of bidis to ANYONE is prohibited under NYS Public Health Law section 1399-ll(1).
  • The failure to clearly post the required bidis notice.
  • Falls under NYS Public Health Law Section 1399-ll(2)(b).
  • The sign must read “ SALE OF BIDIS TO PERSONS UNDER EIGHTEEN YEARS OF AGE IS PROHIBITED BY LAW .”
  • NOTE: Like the tobacco notice, the letters of this sign must be RED , and the letters must be against a WHITE background.
  • The sale of a tobacco product that is not in its original packaging.
  • Falls under NYC Administrative Code 17-618 and NYS Public Health Law Section 1399-gg.
  • All tobacco products must be sold in the original packaging, which displays all of the necessary health warnings.
  • NOTE: In order to sell them, cigarette packages must contain at leasttwenty (20) cigarettes; “roll-your-own’ tobacco packages must have at least 6/10 of an ounce of tobacco; and packages containing devices used to wrap tobacco for smoking must contain at least twenty (20) sheets, tubes or leaves.
  • The allowance of an “underage” employee (i.e. under the age of 18) to sell or handle tobacco products without adult supervision (i.e. a person above the age of 18).
  • Falls under NYC Administrative Code 17-619.
  • NOTE: The adult supervising the minor must also be an employee of the licensed business, AND must be at the business at the time.
  • The placement of a tobacco vending machine in a prohibited public area.
  • Falls under NYS Public Health Law Section 1399-dd.
  • Tobacco vending machines are acceptable in certain bars, private clubs, and tobacco businesses.
  • Tobacco vending machines are acceptable in some workplaces, as long as the majority of the employees are not minors, and the machine cannot be reached by the general public.
  • NOTE : Tobacco vending machines must ALWAYS be supervised by an adult employee of the business in which it is located. Failure to supervise a tobacco vending machine is also a tobacco violation.
  • The sale of tobacco products after a NYS Tobacco Registration has been suspended or revoked.
  • Falls under NYS Public Health Law Section 1399-ee(2).
  • NOTE: If it is determined that a business has sold tobacco products with a suspended or revoked tobacco registration, the business could be fined twenty-five hundred dollars ($2,500.00).

Penalties for Violations of the New York Tobacco Laws and Regulations

Businesses that have been accused of violating the NYC Administrative Code or the NYS Public Health Law could be in danger of suffering heavy consequences, such as paying fines as high as $2,500 or even losing their tobacco registrations. Portela & Associates can help defend you against such accusations and/or penalties by providing you with legal representation during the DCA’s administrative hearing process.

What happens if I am sent a Tobacco Product violation notice?

If a business is sent a Tobacco Product violation notice, it may choose to settle the case without a hearing or fight the accusations during an administrative hearing. For a more detailed description of the actual hearing process, please refer to the DCA Violations and Administrative Hearings category within the Department of Consumer Affairs section of this website.

 

What happens after two or more violations of the NYC Administrative Code in regards to tobacco sales?

A business that is found guilty of two or more violations of sections 17-618, 17-619, and/or 17-620 in the NYC Administrative Code in a two-year time span will have its NYC retail dealer’s cigarette license revoked.

An administrative hearing for a second violation will also involve judging whether or not the accused business should be allowed to keep its NYC cigarette license.

What happens as a result of selling tobacco to a minor?

Businesses found guilty of selling tobacco to a minor will suffer three different consequences.

  • The business will be fined.
    • For the first violation, the fine can range between $300.00 and $1,000.00.
    • For additional violations, the fine can range between $500.00 and $1,500.00.
    • If the sale to a minor occurred when the business had a suspended or revoked tobacco registration, the fine is $2,500.00.
  • The business will have to pay a surcharge of $50.00 for every violation.
  • The business will receive “points” on its New York State Tobacco Retail Registration.
    • If the sale to a minor occurred between September 1, 2000 and October 21, 2002, one point will be assigned to the license.
    • For all sales to minors that occur after October 21, 2002, two points will be assigned to the license.

What is this “point” system?


The “point” system determines whether or not a New York State Tobacco Retail Registration should be suspended or revoked due to violations of Tobacco laws.

These points remain on a business’ record for 36 months. If a business is assigned three (3) or more points in this three-year time span, its NYS Tobacco Registration will be suspended for six (6) months. These points will be removed once the suspension is over.

If a business has been found in violation of selling to minors four (4) times within this three-year time span (i.e. 8 points over three years), its tobacco registration will be revoked for one year. The business will also have to pay the necessary fines and surcharges for the violation.

If a business has ANY points on its tobacco registration, the DCA will inspect the business at least twice a year until the points are gone.

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