Tax and Compliance Policy

Last Updated: August 1, 2025

Nish Cigars (nishcigars.com) is committed to full compliance with all federal and Texas state regulations governing the sale, taxation, and distribution of premium cigars and tobacco products. This Tax and Compliance Policy outlines our adherence to tobacco-specific tax obligations, federal and Texas laws, and reporting requirements for our Texas-only operations.

1. Commitment to Tax and Regulatory Compliance

Nish Cigars operates exclusively within Texas, ensuring all sales and shipments comply with federal regulations, including the Prevent All Cigarette Trafficking (PACT) Act (15 U.S.C. § 375 et seq.), the Federal Food, Drug, and Cosmetic Act (FD&C Act), and Texas state laws. We hold a valid Texas Cigarette, E-Cigarette, and/or Tobacco Retailer Permit issued by the Texas Comptroller of Public Accounts, ensuring lawful operations.

2. Federal Tax Compliance

Nish Cigars adheres to federal tax obligations for tobacco products, as regulated by the Alcohol and Tobacco Tax and Trade Bureau (TTB):

  • We are registered with the TTB for federal tobacco tax compliance, as required under 26 U.S.C. § 5731.
  • Federal excise taxes on cigars are included in our product pricing and remitted to the TTB, ensuring transparency and compliance.
  • We maintain accurate records of all transactions and report sales as required by federal regulations.

3. Texas State Tax Compliance

As a Texas-based retailer, Nish Cigars complies with Texas Tax Code Section 154.101 et seq., which governs cigar and tobacco taxation:

  • Cigar Tax: We collect the Texas cigar tax (e.g., $1.41 per 20 cigars, as of 2025) at checkout for all applicable products. This tax is remitted to the Texas Comptroller of Public Accounts.
  • Transparency: Product prices on nishcigars.com exclude state excise taxes, which are calculated and displayed at checkout for Texas customers.
  • Customer Responsibility: Customers are responsible for any additional state use taxes, if applicable, as per Texas Tax Code Section 154.021. Customers should consult a tax professional for guidance on use tax obligations.

4. PACT Act Compliance

Nish Cigars complies with the PACT Act, which regulates online and mail-order tobacco sales:

  • We report all sales to the Texas Comptroller as required by 15 U.S.C. § 376 and Texas Tax Code Section 154.212, including customer names, addresses, and purchase details.
  • All shipments require adult signature (21+) upon delivery, verified by government-issued ID, as mandated by the PACT Act and Texas Health and Safety Code Section 161.252.
  • We use PACT Act-compliant carriers (e.g., FedEx, UPS) and do not ship to P.O. boxes to ensure age verification.

5. Federal Regulatory Compliance

Nish Cigars adheres to federal tobacco regulations, including:

  • FDA Tobacco 21 Rule (21 CFR Part 1140): Prohibits sales to individuals under 21, enforced through our Age Verification and Restriction Policy.
  • FD&C Act (21 CFR Part 1143): Requires health warnings on all product packaging and website content, such as “WARNING: Cigar smoking can cause cancers of the mouth and throat, even if you do not inhale.” Warnings rotate as required.
  • Advertising Restrictions: We avoid marketing that appeals to minors or uses unapproved claims (e.g., “light” or “mild”), per FDA regulations.

6. Texas Regulatory Compliance

We comply with Texas-specific tobacco laws, including:

  • Texas Health and Safety Code Section 161.082: Prohibits tobacco sales to individuals under 21, enforced through third-party age verification at checkout.
  • Texas Business and Commerce Code Section 161.453: Mandates robust age verification for online sales, including cross-referencing customer data with public records.
  • Texas Tax Code Section 154.101 et seq.: Requires a valid Texas tobacco permit, which we maintain, and imposes excise taxes, which we collect and remit.

7. Customer Responsibilities

By purchasing from nishcigars.com, customers agree to:

  • Provide accurate billing and shipping information, including a valid Texas address.
  • Pay applicable Texas cigar taxes included at checkout.
  • Comply with federal and Texas tobacco laws, including not reselling products, as they are for personal use only.
  • Ensure a person aged 21 or older is available to sign for deliveries.

8. Enforcement and Penalties

Nish Cigars enforces this policy to maintain compliance:

  • Orders violating tax or regulatory requirements (e.g., non-Texas shipping addresses) will be canceled, with a full refund issued minus any restocking fees.
  • Suspected violations of federal or Texas laws (e.g., tax evasion, underage purchases) will be reported to the Texas Comptroller or FDA.
  • Non-compliant customers may face account suspension or bans.

9. Contact Information

For questions about our Tax and Compliance Policy, please contact us:

  • Email: info@nishcigars.com
  • Mailing Address: Nish Cigars, 17939 Kieth Harrow Blvd unit 101, Houston, Texas 77084
  • Business Hours: Monday–Friday, 9:00 AM–5:00 PM CST

10. Policy Updates

Nish Cigars reserves the right to update this Tax and Compliance Policy to reflect changes in federal or Texas laws, tax rates, or operational practices. Updates will be posted on nishcigars.com, with the “Last Updated” date revised. Customers are encouraged to review this policy before placing orders.