MDVA Letter Sent to Wholesalers


As a licensed Michigan cigarette tax stamper, you need to be aware that a new law, P.A. 188 of 2012, requires the state to change from the current heat-applied cigarette tax stamp to a new high security pressure-sensitive cigarette tax stamp.  This change will require a new cigarette tax stamping machine to affix the new stamps.

MDVA, as the statewide association for Michigan’s licensed tobacco wholesale distributors, aggressively lobbied at the State Capitol to protect Michigan’s wholesalers from the significant costs wholesalers in other states have incurred when moving to this new technology.  As a result of MDVA’s successful lobbying effort, legislative language was included in the law to, among other things:

1) Reimburse wholesalers for the total cost of a new high-tech stamping machine

2) Reimburse wholesalers for certain other costs of the new stamping program

3) Provide for a phased-in transition period as needed by wholesalers

This is unprecedented – no other state in the country has paid for the costs of its wholesalers’ stamping machines!

The State awarded the new stamp contract to Xerox and has now begun working on an implementation plan.  MDVA has been an active participant in many meetings with Department of Treasury officials as we work to implement the new program.  We have kept our member wholesalers informed as we are working out details such as; 1)how and when wholesalers will be receiving the reimbursement dollars for their new machine and other costs associated with moving to the new stamping operation, and 2)how and when all Michigan wholesalers will be required to transition to the new stamping machines.

A Michigan moves through the implementation of the new cigarette tax stamping program, MDVA will continue to aggressively represent each individual MDVA member company to the Department of Treasury to assure they receive all eligible reimbursements and is in full compliance with the new law.


Posted in Digtal Tax Stamping News & Information