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Houston, TX Business Licensing & Operations: Tobacco Retail License (2026)

Light Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified May 2026

Key Facts

Permit issuer
Texas Comptroller of Public Accounts
Permit term
Two-year renewal
City permit
None separate from state
Records retained
Four years of invoices
Minimum buyer age
21 statewide

Summary

Every Houston retailer selling cigarettes, cigars, smokeless tobacco, e-cigarettes, or alternative nicotine products must hold an annual retailer permit from the Texas Comptroller under Texas Tax Code Chapter 154 and Health and Safety Code Chapter 161. Houston has no separate city tobacco license.

Sec. 161.084. WARNING NOTICE. (a) Each person who sells cigarettes, e-cigarettes, or tobacco products at retail or by vending machine shall post a sign in a location that is conspicuous to all employees and customers and that is close to the place at which the cigarettes, e-cigarettes, or tobacco products may be purchased.(b) The sign must include the statement:PURCHASING OR ATTEMPTING TO PURCHASE CIGARETTES, E-CIGARETTES, OR TOBACCO PRODUCTS BY A PERSON UNDER 21 YEARS OF AGE IS PROHIBITED BY LAW. SALE OR PROVISION OF CIGARETTES, E-CIGARETTES, OR TOBACCO PRODUCTS TO A PERSON UNDER 21 YEARS OF AGE IS PROHIBITED BY LAW. UPON CONVICTION, A CLASS C MISDEMEANOR, INCLUDING A FINE OF UP TO $500, MAY BE IMPOSED.

Source: City of Houston Code of OrdinancesView official code

Full Breakdown

Texas Tax Code Chapters 154 (cigarettes) and 155 (other tobacco), plus Health and Safety Code Chapter 161, require state-issued retailer permits before any tobacco or e-cigarette sale in Houston. Permits cost about $180 every two years for combined cigarette, tobacco, and e-cigarette retail and must be conspicuously posted. Permittees keep invoices for four years, allow Comptroller and Houston Health Department inspections, prevent self-service displays except in adult-only stores, post Tobacco 21 signage, and reject sales to anyone under 21. State preemption blocks Houston from imposing flavor bans or local fees beyond Comptroller permits. Houston Police and the Health Department conduct minor-decoy compliance checks targeting underage sales.

Violations & Fines

Selling tobacco or vapor products without a Comptroller permit, hiding the permit, missing age-warning signs, allowing prohibited self-service, or selling to underage buyers triggers Class C misdemeanor citations and Comptroller permit suspension.

Frequently Asked Questions

Does Houston issue a city tobacco retailer license?
No. The Texas Comptroller issues the only retailer permit, and state preemption blocks separate city licenses. Houston enforces Tobacco 21 and signage rules through the Health Department but does not require a city license.
What happens if a Houston store sells vapes to someone under 21?
Texas Health and Safety Code Section 161.082 makes the sale a Class C misdemeanor and triggers Comptroller administrative penalties. Repeat violations lead to permit suspension or revocation and Houston Health Department citations.

Sources & Official References

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