Prevent All Cigarette Trafficking (PACT) Act

The Consolidated Appropriations Act, 2021, amended the Prevent All Cigarette Trafficking (PACT) Act to include electronic nicotine delivery systems (ENDS). The term ENDS is defined broadly to include all vaping products, liquids, components, and accessories, whether they contain nicotine or not. The amended PACT Act was signed into law on December 27, 2020. Beginning March 28, 2021, any person shipping or selling ENDS products across state lines must report those shipments or sales along with other required reporting responsibilities in their PACT reports. The Vermont Department of Taxes will post guidance for filing these submissions once finalized.

What Is the PACT Act

On June 29, 2010, the Prevent All Cigarette Trafficking (PACT) Act went into effect. This federal law amends the Jenkins Act, 15 U.S.C. Chapter 10A, which governs the collection of taxes on, and trafficking in, cigarettes and smokeless tobacco. The PACT Act revised definitions in the Jenkins Act, provided new requirements for registration, reporting, recordkeeping, and increased penalties for criminal violations. The PACT Act also generally prohibits mailing cigarettes and smokeless tobacco through the U.S. Postal Service.

For more information, see Prevent All Cigarette Trafficking (PACT) Act Frequently Asked Questions.

Tobacco Products Covered under the PACT Act

Cigarettes and smokeless tobacco are covered. According to 18 U.S.C. 2341 and 26 U.S.C. 5702:

Cigarettes include:

• Any roll of tobacco wrapped in paper or in any substance not containing tobacco.
• Any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling is likely to be offered to, or purchased by, consumers as a cigarette as described in the bullet above.
• Roll-your-own tobacco.

Smokeless tobacco includes tobacco products that are non-combustible (primarily various forms of chewing tobacco, snuff, snus, etc.)

Frequently Asked Questions

Do I have to file the monthly report if I have not made shipments into Vermont during the reported month?

Yes.

What is a “Delivery Seller” as defined in the PACT Act?

A delivery seller makes delivery sales. Delivery sales are sales of cigarettes or smokeless tobacco made to a consumer when:

• The consumer submits his order by telephone or through the mail or internet or

• The cigarettes or smokeless tobacco is delivered by common carrier or other delivery service or

• The seller is not in the physical presence of the purchaser when he takes possession of the product

How long do I have to retain PACT Act records?

Delivery sellers are required to maintain records of any delivery sale of cigarettes and smokeless tobacco, including all of the information required under reporting, organized by the city, town, or ZIP code into which the delivery sale was made. These records must be kept until the end of the fourth full calendar year after the date of the delivery sale.

Who Must Register

The PACT Act amended provisions of the Jenkins Act on the following:

• Shipment and packaging of tobacco
• Compliance with state tax and licensing requirements relating to tobacco
• Filing of certain reports to state tax administrators

If you sell, transfer, ship, advertise or offer to sell cigarettes or smokeless tobacco in interstate commerce, you must register with both of the following:

1. Bureau of Alcohol, Tobacco, Firearms and Explosives of the U.S. Department of Justice
2. Vermont Department of Taxes—you must file monthly reports with the Department

How to Register

Before you can make a PACT Act report online, you must register in myVTax. Follow these easy steps to register your account. The Vermont Department of Taxes will also accept a copy of the statement required to be filed with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), listing the Vermont Agent Authorized to Accept Service (name, address, and telephone number).

An ATF 5070.1 registration form is available on the ATF website. You will need the following information:

• Person’s name, and trade name, if any
• Address of the person’s principal place of business and of any other place of business
• Telephone numbers for each place of business
• Principal email address
• Website addresses, if any
• Name, address and telephone number of an agent in Vermont authorized to accept service on the person’s behalf

Send it by email or submit a paper copy of the registration to:

Vermont Department of Taxes
Miscellaneous Taxes
133 State Street
Montpelier, Vermont 05633

Filing Monthly Reports

You must file this report every month if you:

• advertise, offer for sale, sell, transfer, or ship (for profit) cigarettes in interstate commerce. These cigarettes must be shipped into another state, locality, or Indian nation that taxes the sale or use of cigarettes.
• advertise, offer for sale, sell, transfer or ship (for profit) roll-your-own and/or smokeless tobacco in interstate commerce. The roll- your-own and/or smokeless tobacco must be shipped into another state, locality, or Indian nation that taxes the sale or use of roll-your- own and/or smokeless tobacco.

To file monthly reports using myVTax, see the following guides:

• myVTax Guide: How to submit a PACT Act Report
• PACT Act Sample File
• PACT Act File Upload Layout (Please note: You must save the file as a csv. file format in order to upload successfully on myVTax.)

You may also use the uniform PACT Act forms to file monthly reports. The PACT Act Forms are available at the Federation of Tax Administrators’ website. Fillable versions of these forms for use in Vermont are:

• FTA-PA1: State Cigarette PACT Act Report for Vermont
• FTA-PA2: State Tobacco PACT Act Report for Vermont

Use additional pages of the forms as needed to report all required information. You may email the reports to us. 

Report Due Date

If you are required to register, you must submit a report no later than the 10th day of each calendar month for the previous calendar month's shipments. You must file the monthly report every month until you notify the Department in writing that you no longer sell, transfer, ship, advertise, or offer to sell cigarettes or smokeless tobacco into Vermont. If you have any questions, contact our Business Tax Section, (802) 828-2551 or email us.

Please note: Due dates for PACT Act reporting are not extended due to weekends or holidays; the report is always due by the 10th.