Abstract: A system for distribution tracking and tax assessment of distributed taxable products, such as cigarettes or liquor, is disclosed. The invention includes marking a product package, a product carton and a product case with an identifying indicia which may be laser coded onto the package. The identifying indicia is then tracked through a distribution chain for the product. Specific product location information is generated along the distribution chain as a result of the tracking process. The product location information may be made available to a taxing authority such that a tax assessment may be made on the product. A determination of the tax payable on the product based upon the product location information associated with the identifying indicia specific to the product may be made.