Florida Tobacco License Costs: What Businesses Need to Know

If you want to sell tobacco products in Florida, prepare to navigate a complex web of licensing requirements—and open your wallet. With cigarette tax collections topping $992 million in 2020, it's clear that tobacco is big business in the Sunshine State. But before you can get in on the action, you'll need to ensure your business is properly licensed at both the state and local levels.

The costs of those licenses can vary widely based on the specific type of business you operate and the products you want to sell. And with 39 states now mandating tobacco permits for over-the-counter tobacco sales, Florida's licensing scheme is part of a more significant nationwide trend of tighter industry regulation.

In this article, we'll break down the different types of tobacco licenses required in Florida, the associated costs for each, and the nitty-gritty details of the application and renewal processes. By the end, you'll have a clear roadmap for how to get your tobacco business up and running in Florida—legally and profitably.

How Much Does a Tobacco License Cost in Florida?

The cost of a license for the sale of tobacco products in Florida varies depending on the type of business and products being sold. Still, license fees generally range from $50 per year (per retail location) for a retail tobacco products dealer permit up to $1,000 or more for wholesale or distributing licenses.

Several key factors influence the exact licensing costs:

Type of business: Retailers, wholesalers, distributors, and manufacturers all require different licenses with varying fees.
Location: If a business has more than one central location, some local government agencies in Florida require additional permits on top of the state license, which can add to the total cost.
Product types: Businesses that sell a variety of tobacco products may need multiple licenses compared to those that only sell one type, like premium cigars.

In addition to the license fees themselves, tobacco businesses should be prepared for other potential costs in the licensing process, such as:

Application and processing fees, which can range from $25 to $100 or more
Surety bonds of $1,000 or more, required for wholesale dealers and distributors to secure payment of taxes
Annual renewal fees, which are typically the same as the initial license fee and must be paid each year to maintain an active license

For example, a business applying for a Tobacco Wholesale Dealer Permit would need to pay a $25 application fee, post a $1,000 surety bond, and pay a $25 annual license fee. Meanwhile, a retailer would only pay $50 annually for a Retail Tobacco Products Dealer Permit, with no bond required.

Types of Tobacco Licenses in Florida

In addition to federal licenses, Florida offers several different types of licenses for business owners engaged in selling or distributing tobacco products. Each license corresponds to specific business types and activities and comes with its own set of fees and requirements:

Retail Tobacco Products Dealer Permit

Required for businesses that sell tobacco products directly to consumers, such as convenience stores, gas stations, and grocery stores
Permits the sale of cigarettes, cigars, smokeless tobacco, and other tobacco products
Annual fee: $50 per location

Tobacco Wholesale Dealer Permit

Required for businesses that sell tobacco products to other dealers for the purpose of resale
Permits the sale of cigarettes, cigars, smokeless tobacco, and other tobacco products at wholesale
Annual fee: $25 per location
Additional requirements: $1,000 surety bond

Tobacco Distributing Agent Permit

Required for businesses that receive, store, and distribute tobacco products on behalf of manufacturers or other dealers
Permits the distribution of cigarettes and other tobacco products within the state
Annual fee: $100
Additional requirements: Surety bond (amount varies based on sales volume)

Cigarette Wholesale Dealer Permit

Required for businesses that sell only cigarettes (no other tobacco products) to dealers for resale
Annual fee: $100
Additional requirements: Surety bond (amount varies based on sales volume)

Cigarette Manufacturer's Permit

Required for businesses that manufacture or fabricate cigarettes
Annual fee: $100
Additional requirements: A federal license from the Alcohol and Tobacco Tax and Trade Bureau (TTB)

Cigar Wholesale Dealer Permit

Required for businesses that sell only cigars (no cigarettes or other tobacco products) at wholesale
Annual fee: No additional fee beyond the Tobacco Wholesale Dealer Permit
Additional requirements: Tobacco Wholesale Dealer Permit

Businesses engaged in multiple types of tobacco sales may need to obtain more than one permit. For example, a wholesale business that sells cigarettes and cigars would need a Cigarette Wholesale Dealer Permit in addition to a Tobacco Wholesale Dealer Permit.

Licensing Requirements & Application Process

To qualify for a tobacco license in Florida, businesses must meet certain general requirements regardless of the specific license type. These include:

Registering the business with the Florida Department of State
Obtaining a federal Employer Identification Number (EIN)
Having a physical business location in Florida (no online-only sales)
Passing a background check for all owners, officers, and managers

Each license type also has its own specific requirements that applicants must satisfy. For example:

Cigarette Wholesale Dealers must submit fingerprints for a criminal background check
Tobacco Distributing Agents must provide a list of all manufacturers they represent
Retail Tobacco Products Dealers must have a separate permit for each location or vending machine

To begin the application process, businesses should:

Gather all required documentation, including business registration, EIN, and surety bond information.
Complete the appropriate application form for their license type
Submit the completed application, along with any required fees and documentation, to the Florida Division of Alcoholic Beverages and Tobacco online through the department's licensing portal, by mail, or in person at the division's offices in Tallahassee.

Processing times for tobacco license applications typically range from 2-6 weeks. Once approved, the physical license will be mailed to the business address on file. Businesses should be prepared to respond promptly to requests for additional information or documentation to avoid delays in the approval process.

Regulations & Consequences for Non-Compliance

In addition to obtaining proper licensing, Florida tobacco businesses must also comply with various state and federal regulations governing the sale and distribution of tobacco products. Some of the most important rules include:

Prohibiting sales to anyone under 21 years of age
Requiring age verification for all customers appearing under 30
Posting mandatory signage stating that tobacco sales to minors are illegal
Restricting self-service displays and vending machine sales

Businesses found to be selling tobacco without a valid license can face severe penalties, including:

Fines of $500 to $1,500 per violation
Misdemeanor criminal charges punishable by up to 60 days in jail
Seizure and forfeiture of all tobacco products and proceeds

Violations of other tobacco regulations can result in additional fines, license suspensions, or even permanent revocation. With so much at stake, businesses must prioritize compliance with all applicable laws and take proactive steps to prevent unlawful sales.

Navigating the Licensing Maze

While the cost and complexity of tobacco licensing in Florida can seem daunting, the stakes of non-compliance are simply too high to ignore. By taking the time to understand the application requirements, gather the necessary resources, and seek out expert help when needed, businesses can successfully obtain and maintain the licenses they need to operate legally and thrive in the competitive tobacco market.

At Zen Payments, we understand that tobacco merchants have unique payment processing needs. Contact us today to begin navigating high-risk merchant accounts and payment processing for your tobacco business.