09/14/2026
Convenience Store Operators:
Did you have ni****ne pouches or other alternative ni****ne products in inventory on August 31?
Effective September 1, New York extended its to***co-products tax to “alternative ni****ne products”—generally noncombustible ni****ne products that contain ni****ne but not to***co, such as many ni****ne pouches. The tax is 75% of the wholesale price.
Businesses that held affected inventory at 11:59 p.m. on August 31 must file Form MT-200.5 and pay the floor tax by September 21, 2026. Retailers that were not already registered as to***co-product dealers were also required to register by September 1.
This is significant for convenience stores, fuel stations with retail stores, distributors, and vending operators. The penalty for failing to file/pay begins at 10% for the first month or fraction thereof, then increases by 1% per additional month, up to 30%, plus interest; criminal penalties are also possible under the applicable tax laws.
Effective September 1, 2026, the New York State to***co products tax is extended to alternative ni****ne products. The tax is imposed at the rate of 75% of the wholesale price of the product. Distributors generally pay the to***co products tax. However, because the tax has not been paid on alternati...
