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Last Updated: 8/29/2017

Causes of Shortages or Overages

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​What is an overage or a shortage?

An overage or shortage can occur when you compare cigarettes subject to tax to the total tax stamps used in a month.

If your reconciliation shows you used more stamps than cigarettes subject to tax in a month, that is an overage. If your reconciliation shows you used fewer stamps than cigarettes subject to tax in a month, that is a shortage. In short, more cigarettes than stamps equals a shortage and more stamps than cigarettes equals an overage.

What causes an overage or a shortage of cigarette tax stamp inventory?

A number of things can lead to overages and shortages.  For a list of possible causes, view examples of overages and shortages for resident  or nonresident distributors.