A step-by-step guide for entrepreneurs and businesspersons to navigate the licensing process in Detroit, Michigan.
Introduction
If you are starting a business that sells cigarettes or other tobacco products in Detroit, you are required to obtain a Cigarette & Tobacco License. This blog provides a detailed guide to the application and renewal processes, required documents, applicable fees, and approvals mandated by Detroit’s statutory authorities. Whether you’re an experienced businessperson or an emerging entrepreneur, this guide will help you establish and operate your business legally and efficiently.
Steps to Obtain a Cigarette & Tobacco License in Detroit
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Understand Licensing Requirements:
Tobacco sales in Detroit are regulated by the State of Michigan and the City of Detroit. Business owners must adhere to state and local laws, including those set by the Michigan Department of Treasury and Detroit City Council ordinances.
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Gather Required Documents:
Ensure you have the following documents for your application:
- Completed Tobacco Retailer License application form (available from the Michigan Department of Treasury).
- Proof of business registration with the Michigan Secretary of State or Wayne County Clerk’s Office.
- Michigan Sales Tax License from the Michigan Department of Treasury.
- Government-issued photo ID of the business owner or authorized representative.
- Zoning approval from the Detroit Buildings, Safety Engineering and Environmental Department (BSEED).
- Certificate of Occupancy for your business premises.
- Lease agreement or proof of property ownership.
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Submit Your Application:
Applications can be submitted online via the Michigan Treasury Online (MTO) portal or in person at the Detroit City Clerk’s Office. Some businesses may require additional local permits or approvals from Detroit authorities.
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Pay Licensing Fees:
The licensing fee for a Tobacco Retailer License in Detroit is approximately $200 annually. Additional fees may apply for zoning inspections or other requirements.
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Approval and Inspection:
Your application will be reviewed, and an inspection of your business premises may be conducted to ensure compliance with zoning, health, and safety standards. Processing times typically range from 4-6 weeks.
Renewal Process for Cigarette & Tobacco License
The Cigarette & Tobacco License in Detroit must be renewed annually. Follow these steps to renew your license:
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Receive a Renewal Notification:
The Michigan Department of Treasury or City of Detroit will notify you of your license’s expiration 30-60 days in advance.
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Review and Update Business Information:
Ensure that your business information, including address, ownership details, and compliance records, is up-to-date.
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Submit the Renewal Application:
Complete the renewal application online through the MTO portal or submit it in person at the Detroit City Clerk’s Office.
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Pay Renewal Fees:
The renewal fee is approximately $200 annually. Late renewals may result in penalties ranging from $50 to $150.
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Receive Your Renewed License:
Once approved, your renewed license will be valid for another year.
Applicable Fees
- Initial License Fee: $200 annually.
- Renewal Fee: $200 annually.
- Late Renewal Penalty: $50–$150.
- Inspection Fee (if applicable): $75–$150.
Approvals Required from Detroit Authorities
- Michigan Department of Treasury (state-level licensing and tax compliance).
- Detroit Buildings, Safety Engineering and Environmental Department (zoning compliance).
- Detroit Fire Marshal’s Office (if applicable, for fire safety inspections).
- Wayne County Public Health Department (if required).
Compliance Tips for Tobacco Retailers
To ensure compliance with Detroit and Michigan regulations, follow these tips:
- Verify the age of all customers purchasing tobacco products. The legal age in Michigan is 21.
- Prominently display your Tobacco Retailer License in your store.
- Maintain accurate records of all tobacco sales for audits and inspections.
- Adhere to advertising restrictions to avoid promoting tobacco products near schools, parks, or youth-focused areas.
- Comply with Detroit’s smoke-free workplace regulations and post the required signage.