This is a reference summary, not legal advice. Verify with your state's Department of Revenue / Comptroller / ABC before opening a retail account. License names and fee schedules update annually — the links below go to each state's official issuing authority.
Opening a smoke shop or vape shop in the US requires, at minimum, three permits per location:
- A general state business license (every state)
- A sales tax permit (every state with sales tax)
- A tobacco / OTP (Other Tobacco Products) retail license — varies by state
For hemp-derived products specifically, most states treat hemp wraps and cones as accessories rather than tobacco — but several (NY, MA, OR) require an additional hemp-retailer permit. Below, by state.
Texas
Permit: Cigarette, E-Cigarette, and Tobacco Products Retailer Permit (per-location).
Issuing authority: Texas Comptroller of Public Accounts.
Fee: $180 per 2-year period (as of 2026).
Hemp note: Hemp-derived accessories are unrestricted under Texas Agriculture Code Chapter 122. Wholesale to Texas shops.
California
Permit: Cigarette and Tobacco Products Retailer License (CDTFA).
Issuing authority: California Department of Tax and Fee Administration (CDTFA).
Fee: $265 annual (2026).
Hemp note: California Prop 65 labeling applies. Some counties (LA, San Francisco) require additional local tobacco retail permits. Wholesale to California shops.
Florida
Permit: Retail Tobacco Products Dealer Permit.
Issuing authority: Florida Division of Alcoholic Beverages and Tobacco (DABT).
Fee: $50 annual.
Hemp note: Hemp accessories unrestricted. Hemp-derived consumables (Δ8, Δ10) face increasing FL legislative pressure — verify SKU eligibility. Wholesale to Florida shops.
New York
Permit: Retail Dealer Certificate of Registration for Cigarettes and Tobacco Products.
Issuing authority: New York State Department of Taxation and Finance.
Fee: $300 annual.
Hemp note: NYC has additional borough-level requirements (Local Law 145) — including a cap on tobacco-license density per zip code. Hemp-derived accessories: ok with state retail license. Wholesale to NY shops.
Illinois
Permit: Cigarette and Tobacco Products Tax Retailer License.
Issuing authority: Illinois Department of Revenue.
Fee: $75 annual.
Hemp note: Hemp wraps and rolling papers unrestricted. Wholesale to Illinois shops.
Pennsylvania
Permit: Retail Tobacco License.
Issuing authority: PA Department of Revenue.
Fee: $25 annual.
Hemp note: OTP tax (40% of wholesale cost) applies to certain SKUs. Verify which Lion Rolling Circus SKUs trigger OTP with your accountant. Wholesale to PA shops.
Ohio
Permit: Cigarette and Other Tobacco Products License.
Issuing authority: Ohio Department of Taxation.
Fee: $125 annual.
Hemp note: Hemp accessories unrestricted; hemp-derived consumables face 2024+ Ohio H.B. 86 framework — verify SKU eligibility. Wholesale to Ohio shops.
Georgia
Permit: Cigarette and OTP Distributor / Dealer License.
Issuing authority: Georgia Department of Revenue.
Fee: $250 annual.
Hemp note: Hemp accessories ok under Georgia Hemp Farming Act. Wholesale to Georgia shops.
North Carolina
Permit: Tobacco Products Tax License.
Issuing authority: NC Department of Revenue.
Fee: $25 annual.
Hemp note: Hemp-derived accessories unrestricted. Wholesale to NC shops.
Michigan
Permit: Tobacco Products Tax License (Retailer).
Issuing authority: Michigan Department of Treasury.
Fee: $25 annual.
Hemp note: Hemp accessories ok. Michigan recreational cannabis market means smoke shops often cross-sell hemp + cannabis accessory SKUs. Wholesale to Michigan shops.
Common compliance gaps
- Per-location vs per-business: Most states require a separate license per physical location. Multi-store owners frequently miss this.
- Tobacco vs OTP: Cigarettes, cigars, and pipe tobacco are usually separate from "Other Tobacco Products." Some states regulate them under different licenses.
- Hemp ≠ cannabis: Don't conflate hemp licenses with state cannabis dispensary licenses. They're separate frameworks.
- Age verification: Federal Tobacco 21 law applies in every state. Some states (CA, NY) have stricter ID-check audit programs.
What you need from your wholesale supplier
A good wholesale supplier will provide on request:
- Resale certificate or tax-exemption verification
- Master case UPC for tobacco-track-and-trace states (NY, CA)
- Farm Bill COA for hemp-derived SKUs
- State-specific compliance memos (for our top retail states, we publish these per-shipment)
Browse our state-specific wholesale guides linked above, or open a Lion Rolling Circus wholesale account to get the compliance pack for your state.