2024 Guide: Cigarettes & Tobacco Products at Family Dollar and Dollar General

February 13, 2024

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Discover if Family Dollar and Dollar General sell cigarettes in 2024. Our comprehensive guide covers all tobacco products available. Save on smoking essentials, shop now!

Does Family Dollar Sell Cigarettes

Tobacco Products Wholesale Cost – Different methods of estimating or calculating wholesale cost in certain situations

If the following conditions apply, the correct wholesale price to report by the retailer can be calculated using the alternate methods described in Regulations 4076 (c):

A manufacturer or an importer who is also a retailer. (Regulation 4076(b)(2))

The cost of tobacco products must include any discounts, trade allowances, or other concessions, whether they are stated, implied, or not. (Regulation 4076(b)(3))

When tobacco products were not bought in a transaction between two parties at arm’s-length. (Regulation 4076(b)(4))

The following resources or methods, as described in Regulation 4076(c), may be used:

The price list used by the distributor to set the prices for tobacco products in transactions with customers at arm’s length during the period under consideration, less the best estimate of profit based on the information available.

The evidence should be based on a reasonable estimate of typical tobacco product costs, as determined by distributors in similar circumstances.

All the direct and indirect costs that the supplier paid or incurred with respect to acquisition, production, marketing, and sale of the tobacco products sold by the supplier to the distributor, with appropriate adjustments to such costs as indicated by all the facts and circumstances, plus a reasonable estimate of the supplier’s profit.

The price of the same or similar tobacco products as reflected in a supplier’s price list, with appropriate adjustments to such price as indicated by all the facts and circumstances.

The retail price of the same or similar tobacco products as reflected in a retailer’s price list, with appropriate adjustments to such price as indicated by all the facts and circumstances, less reasonable estimates of the retailer’s and distributor’s profits.

We will approve any additional methods that are not listed above.

Regulation 4076(e), Wholesale Cost of Tobacco Products, provides examples of estimating or calculating the wholesale cost of tobacco products:

Example 1: Distributor B produces handmade cigars.

Since Distributor B makes the cigars, Distributor B is a manufacturer in addition to a distributor.

Distributor B would compute the wholesale cost of their tobacco products by including their manufacturing costs. See description of all costs to include under the heading “Wholesale Cost of Tobacco Products – If a Manufacturer or Importer is also the Distributor” or Regulation 4076(b)(2).

Example 2 Distributor C buys tobacco products from subsidiary company in which he owns more than 50% of voting shares.

We presume, due to the corporate relationship that exists between the seller and the buyer, that this sale and purchase was not made at arms’ length. Distributor C does not refute our presumption.

In the absence of an arm’s-length transaction, the methods discussed under the heading “Wholesale Cost of Tobacco Products – Alternative Methods of Estimating or Calculating Wholesale Cost in Certain Situations” or in Regulation 4076(c) may be used to determine the correct wholesale cost.

Distributor D receives free tobacco products and does not report any wholesale costs on his Tobacco Products Distributor tax return.

However, Distributor D acquired such tobacco products at a 100 percent discount or trade allowance.

Example 4: Distributor E, with a Tobacco Products Importer’s License, acquires tobacco products or finished tobacco products from a supplier outside the United States.

Distributor E’s costs for tobacco products include all U.S. customs fees, federal excise tax, and other costs incurred or paid by Distributor E in relation to these tobacco products.

Distributor F is given three packages of tobacco as part of a promotional “three for two” package. Each unit has a UPC barcode.

As the products are packaged together as one inseparable unit, tax is based on the total package price.

Example 6: Distributor G receives two units, to sell as a “buy one, get one free” promotion. Each unit is separately packaged and each unit is labeled with a UPC barcode.

Because one unit is being provided for free, tax would apply to the wholesale cost of each separate unit as calculated by a method discussed under the heading “Wholesale Cost of Tobacco Products – Alternative Methods of Estimating or Calculating Wholesale Cost in Certain Situations” or in Regulation 4076(c).

Example 7: Distributor H gets a discount of three percent for paying the supplier within 10 business days after receiving their goods.

To calculate the wholesale cost, Distributor H must add the three percent discount to the price paid for the products.

Regulation 4076(f), provides examples of items that are and are not tobacco products as of April 1, 2017, and additional examples of estimating or calculating the wholesale cost of tobacco products:

Example 1: Distributor K produces finished nicotine products intended for human consumption.

Therefore, to compute the wholesale cost of K’s tobacco products, K would include the costs described under the heading “Wholesale Cost of Tobacco Products – If a Manufacturer or Importer is also the Distributor” or in Regulation 4076(b)(2).

Example 2: Distributor L purchased two types of vaping kits. Both types of kits are sold to Distributor L as a single unit in their original manufacturer packaging and contain a personal vaping device, tank, atomizer coil, USB charger, A/C adapter and a bottle of finished flavored e-liquid. Kit #1 has 1.80 percent nicotine content in its e-liquid while Kit #2 has no nicotine in its e-liquid.

The Kit #1 can be considered an electronic cigarette, as it contains the personal vaping devices and any other components, parts or accessories sold with nicotine-containing liquid.

Distributor L must report tobacco tax on Kit #1 based upon the unit wholesale price.

Kit #2 is not an electronic cigarette because nicotine is not sold in combination with the items in Kit #2 and the tobacco products tax would not apply to Kit #2 because it is not a tobacco product.

Exemple 3: Distributor M bought 100 packages of Vaping Kit No. 3, which, according to the packaging, contains: A personal vaping unit, a tank, an atomizer coil and a USB charger. Distributor M purchased 100 bottles of flavored, finished e-liquid that contained 3.20 percent Nicotine. Distributor M intends to sell both packages to wholesalers and retailers and will separately charge wholesalers and retailers for packages containing Kit #3, and packages containing a bottle of the finished, flavored e-liquid containing nicotine as part of each sale of both items in the same transaction.

The wholesale price of Kit #3 is not subject to the tax because it does not contain electronic cigarettes.

Distributor N is a distributor of closed-system devices that are sold to retailers and wholesalers. Devices are made to contain nicotine-containing flavored, finished ejuice, are ready for use immediately after purchase, and cannot be sold with no nicotine.

The closed-system vaping devices are electronic cigarettes or e-cigarettes because they are sold in combination with a liquid or substance containing nicotine.

Distributor N will need to report the tobacco products tax on the entire wholesale cost of each closed-system e-cigarette.

Exemple 5: A licensed distributor of tobacco products sells e-juice that contains nicotine at a tax-free price to retailer P. As a promotional offer, Retailer P will bundle and sell the nicotine-containing e-juice tax-paid with an adapter, battery and case for one price.

Because the e-juice that contains nicotine was distributed prior to Retailer P’s promotion sale, the wholesale price of the product sold by the retailer is exempt from the tobacco product tax.

Distributor Q offers a free accessory to customers who purchase 10 disposable cartridges with an ejuice with a nicotine level of 1.8 percent. The accessories are not included in the original packaging of the cartridges. The billing invoices show the price charged for the cartridges and a separate charge of $0 for the accessories.

The tobacco products tax would apply to the wholesale cost of the cartridges only since the accessories are not packaged with the cartridges by the manufacturer as one unit and the accessories are not sold with the cartridges for a single price.

Exemple 7: Distributor R rents an office where he manufactures and stocks finished tobacco. The facility also houses the offices for Distributor R’s entire operation, including the sales and general administration offices. Rent for the facility is $10,000.00 per month. Distributor R uses five percent of total space to manufacture finished tobacco products.

Because a portion of the rented facility is used for manufacturing purposes, Distributor R must allocate a proportionate share of its rent expense to its calculation of its manufacturing costs.

Distributor R, in this case, must apply five percent ($10,000 multiplied by 5%) of its monthly rent to the cost of wholesale tobacco products that Distributor R produces at the factory.

Example 8: Distributor S purchases un-taxed 60 ml. Containers of finished nicotine-containing e-liquid from an out-of state company. Distributor S places each 60 ml. Distributor S will combine a container of nicotine-containing eliquid with an AC adapter, USB charger, and a kit that includes a personal device for vaping, a tank, and atomizer coil. Distributor S will distribute the e-liquid containing nicotine by selling these combined packages to other distributors, wholesalers, retailers and consumers in California for a single price.

Distributor S will sell each package of untaxed nicotine-containing e-liquid for one price. The entire package is an electronic cigarette. Tax will be applied to the cost wholesale.

The sale of tobacco products by an out-of-state California-licensed tobacco products distributor to an in-state California-licensed tobacco products distributor is not considered a distribution of tobacco products in California by the out-of-state seller. The licensed California distributor who buys tobacco products out of state and distributes tobacco products within California is responsible for the tax.

Will Family Dollar sell cigarettes in 2022?

Family Dollar will sell tobacco products, including cigarettes, cigars and e-cigarettes. Nicotine gum is also available. At Family Dollar, you must present a government-issued picture ID to establish that you are at least 21 years old in order to purchase any tobacco goods. A Family Dollar store’s price for smokes varies from state to state.

Continue reading if you’d want to learn more about purchasing smokes at Family Dollar shops! All the information you’ve been looking for is right here!

Is Family Dollar a retailer of tobacco and cigarettes?

Family Dollar began selling cigarettes and other tobacco products in 2012. Family Dollar, on the other hand, sells a variety of tobacco products, including cigarettes, cigars, e-cigarettes, and nicotine gum.

You may not find these items on the shelves. Cigarettes and tobacco items are kept in locked display cases in the front of the store by Family Dollar, and you must contact a clerk for help.

The staff will remove the products from the display cabinet, charge them and then hand them over to you after payment has been completed.
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You can also find cigarette accessories at Family Dollar such as rolling papers, cigarette lighters and other tobacco products.

California Electronic Cigarette Excise Tax

The HOPE Act mandates that we collect California Electronic Cigarette Excise Taxes (CECET) beginning July 1, 2022 from retailers selling electronic cigarettes containing nicotine or with nicotine in California. You are required to register for a CECET Account with us if you’re a retailer selling electronic cigarettes that contain or are sold with nicotine. This is true whether you live in California or not. According to the HOPE Act, a retailer who sells electronic cigarettes containing nicotine must:

Have a CECET permit (account),

The CECET is 12.5 percent of retail price for electronic cigarettes that contain or are sold with nicotine.

You can file a CECET electronically.

Pay the tax to us.

Tax Guide for California Electronic Cigarette Excise Tax for more information.

The federal law mandates that a retailer who makes a commercial machine to make cigarettes available for customers must obtain from the Alcohol and Tobacco Tax and Trade Bureau a license as “manufacturer” of tobacco products. Under the Cigarette and Tobacco Products Licensing Act of 2003, the retailer does not manufacture cigarettes if the retailer does not own the tobacco when it is manufactured into cigarettes. In this scenario, the retailer is not required to register with us as a cigarette manufacturer.

The federal government prohibits the manufacture of tobacco products by anyone without a permit from TTB. This can lead to civil or criminal penalties. TTB instructed retailers without permits to “immediately cease operations” until they obtain a TTB license.

Note: These requirements don’t apply to businesses who only roll or make cannabis. Furthermore, cigarette and tobacco products may not be sold at the same location that is licensed as a cannabis business.

The minimum age to purchase cigarettes and tobacco products in California is 21, except for active duty military personnel in the U.S. Armed Forces.

See the California Department of Public Health’s Tobacco 21 website for more information.

Electronic cigarettes, personal vaporizers, eCigars, eHookahs, ePipes, and vaping devices are some of the terms used to describe electronic nicotine delivery systems (ENDS). These ENDS generally heat up a liquid or “eLiquid” that contains nicotine, as well as other flavors and ingredients.

The ENDS that do not contain nicotine or are not sold in a kit that contains nicotine, are considered tobacco products for retail licensing purposes, but not for tax purposes. Thus, the sale of ENDS that do not contain nicotine or are not sold with nicotine are not subject to the California excise tax on tobacco products. California Cigarette and Tobacco Products Retailer’s License required if selling ENDS to a California consumer that don’t contain nicotine, or do not come with nicotine. A distributor or wholesaler does not need to be licensed under the California Cigarette and Tobacco Products Licensing Act of 2003 to sell ENDS that do not contain nicotine or are not sold with nicotine to a retailer.

California Electronic Cigarette Excise Tax (CECET) will be applied to the sales of ENDS containing nicotine, or sold as a nicotine-containing kit. This tax is effective July 1, 2022. Retailers of electronic cigarettes containing or sold with nicotine are required to collect from the purchaser the CECET at the rate of 12.5 percent of the retail selling price. Accordingly, electronic cigarette retailers are required to hold a California Cigarette and Tobacco Products Retailer’s License and a CECET permit (account). Please see the California Electronic Cigarette Tax Guide to learn more about CECET’s reporting and sales requirements.

Please note: the California Cigarette and Tobacco Products Licensing Act is not applicable to cannabis, or any other cannabis-related products like cannabis vape pen or accessories. In addition, cigarette and tobacco products may not be sold at the same location that is licensed as a cannabis business.

A tobacco product manufacturer (Regulation 4077, Tobacco Product Manufacturer) is:

A person who, whether a repacker, relabeler or a manufacturer, manufactures, fabricates or assembles a tobacco product, and then mixes, blends or combines it, processes or labels the finished product.

Owner of a formula or brand for a tobacco-based product, who hires another to fabricate and assemble the product according to his standards.

Retailer who blends or mixes a tobacco substance that’s not suitable for consumption by humans, like liquid nicotine, to create a tobacco that can be consumed by people.

A tobacco products retailer is not a tobacco product manufacturer solely because:

Retailers package liquid nicotine along with other products as a single unit.

Retailers package finished tobacco products such as cigars together in one single unit.

After a purchase, a retailer will allow its customers to blend or mix liquid nicotine with other ingredients.

Retailers mix, blend, or combine finished tobacco products such as pipe smoke.

Tobacco products retailers who are also tobacco products manufacturers must register to become tobacco products distributors. Tobacco products retailers who are not licensed to be a manufacturer, distributor, or importer of tobacco products must buy their tobacco products from licensed wholesalers or tobacco distributors.

For more information about manufacturers, see our Manufacturer & Importer section.

Discussion

Our study examined disparities in the distribution of tobacco retailer types by census tract poverty level, racial and ethnic composition, and urban, suburban, and rural status. The disparity in poverty between urban and suburban areas was one of the most obvious patterns. In Ohio, urban areas with high and low racial or ethnic minorities had a higher prevalence of convenience shops than low-poverty areas. Grocery stores and pharmacies demonstrated the opposite pattern as convenience stores, whereby, for urban centers and areas of both high- and low- racial and ethnic minority areas, the prevalence of grocery stores and pharmacies was lower in high-poverty census tracts than in low-poverty tracts. The findings are in line with those of previous studies (12).
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Disparities in the distribution of discount stores also appeared to be driven by racial and ethnic composition. Low-minority urban tracts had the lowest prevalence of discount stores, and high-minority urban tracts had among the highest prevalence of discount stores. This finding aligns with arguments by others that the growth of discount stores in urban neighborhoods of color relates to a long history of racial discrimination and economic exclusion (15). Discount stores were also prevalent in suburbs with high poverty, as well as in rural census tracts that had both high and low levels of poverty (14). Tobacco stores showed a slightly different pattern. Low racial or ethnic minorities in urban census tracts were the ones with some of highest tobacco shop prevalence. In rural and suburban census tracts with high poverty, there was a high number of tobacco shops.

The differences between urban and suburban or rural areas were responsible for some of the disparities observed in terms of prevalence. According to a study (16), vape, hookah, and alcohol shops had the lowest rates of prevalence in rural census areas. The same study found that vape shops were more prevalent in Hispanic or Asian communities, while our data shows that vape and alcohol shops are low in urban areas with high minorities. This discrepancy could be a result of different classifications of racial and ethnic minorities in the studies. One study that did not take into account the differences between urban and rural areas found less vape shops in New Jersey census blocks with higher Hispanic or Black populations (27). Bars and restaurants selling tobacco are less prevalent in rural and suburban census tracts compared to urban ones, except for low-poverty tracts.

Our study builds on previous research on tobacco retailer disparities (8,11) by showing disparities in the distribution of specific retailer types. The implications of our findings for the price and availability of products make them important. For example, because discount stores are heavily concentrated in minority, rural, and high-poverty census tracts, people living in these communities have access to tobacco at cheaper prices. In a recent study, the cost of cigarettes at discount shops was nearly one dollar less than in grocery stores. Discount stores are likely to contribute to the prevalence of smoking among rural and poor populations, racial minorities, and those from ethnic and racial minority groups. The fact that discount tobacco stores are increasing in number among US tobacco retailers is even more concerning.
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A second finding showed that the most prevalent vape shops and hookahs are in rural and urban areas with high poverty and high minority. These communities could have less access than others to hookah and e-cigarettes. This finding has an unclear impact on public health. E-cigarettes are still the subject of complex debates. They can be used as harm reduction products by adult smokers who want to stop smoking, or as gateway products for young people that have never smoked tobacco before (30-32). The consequences of vape shop access for health disparities will need to be examined in future research.

Our results also affect the selection of strategies for licensing laws by a local community. License laws require tobacco retailers to have a permit to do business. Licensing-law strategies may include additional restrictions to reduce or limit the density or number of retail outlets in a particular area. For example, several localities have used licensing-law strategies that prohibit the sale of tobacco in pharmacies. Despite this, our data show that pharmacies tend to be more prevalent in urban census tracts with low poverty, which contributes to the phenomenon of pharmacy deserts. This type of distribution suggests that policies restricting pharmacy tobacco sales could have an inequitable effect by eliminating more retailers in the most affluent areas. Other researchers have raised this equity concern (36). Conversely, as our data show both convenience stores and discount stores are more prevalent in communities experiencing tobacco-related health disparities, these retailer types should be the target of future policies to equitably reduce tobacco retailer density. A policy that restricts the location of tobacco shops to only adult locations could, for example, limit tobacco retailers to state-run stores, tobacco, hookah, and vape shops. In some states, age-restricted location policies are similar to those that restrict cannabis and alcohol sales. When carefully selected and based on community characteristics, licensing-law strategies may also reduce retail density.

Our study had limitations. Ohio did not have a licensing strategy at the time the data was collected. It only required that cigarettes be sold with a permit. It is possible, despite the fact that this licensing system produced a list that appeared to be comprehensive of all retailers selling cigarettes, that there were some retailers who did not have a license. It is also possible that our search methods might not have detected all hookah and e-cigarette retailers. A further limitation was that Black and Hispanic Census tracts were combined. This made it difficult to understand more detailed differences at the community level in retailer distribution. Future research in areas with different community characteristics should use our method. Future research could also analyze additional retailer categorizations (eg, chain vs nonchain retailers).

Our results show that retailer distributions vary according to community characteristics. We found that grocery store and pharmacy distributions varied by community poverty, discount stores and tobacco shops varied by poverty and racial and ethnic composition, and vape, hookah, and bars and restaurants varied by urban, suburban, or rural status. Distribution of retailer types can have implications on product pricing and availability, and may influence smoking cessation and tobacco use. To create equitable outcomes, policies should focus on retailers, such as convenience and discount stores, which are heavily located in communities experiencing tobacco-related health disparities.

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