Chapter 257

2011 -- S 0603 SUBSTITUTE B

Enacted 07/09/11

 

A N A C T

RELATING TO TAXATION -- CIGARETTE TAX

          

     Introduced By: Senators Doyle, and Gallo

     Date Introduced: March 10, 2011

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Section 44-20-1 of the General Laws in Chapter 44-20 entitled "Cigarette

Tax" is hereby amended to read as follows:

 

     44-20-1. Definitions. -- Whenever used in this chapter, unless the context requires

otherwise:

      (1) "Administrator" means the tax administrator;

      (2) "Cigarettes" means and includes any cigarettes suitable for smoking in cigarette

form, and each sheet of cigarette rolling paper;

      (3) "Dealer" means any person whether located within or outside of this state, who sells

or distributes cigarettes to a consumer in this state;

      (4) "Distributor" means any person:

      (A) Whether located within or outside of this state, other than a dealer, who sells or

distributes cigarettes within or into this state. Such term shall not include any cigarette

manufacturer, export warehouse proprietor, or importer with a valid permit under 26 U.S.C.

section 5712, if such person sells or distributes cigarettes in this state only to licensed distributors,

or to an export warehouse proprietor or another manufacturer with a valid permit under 26 U.S.C.

section 5712;

      (B) Selling cigarettes directly to consumers in this state by means of at least twenty-five

(25) cigarette vending machines.;

     (C) Engaged in this state in the business of manufacturing cigarettes or any person

engaged in the business of selling cigarettes to dealers, or to other persons, for the purpose of

resale only; provided, that seventy-five percent (75%) of all cigarettes sold by that person in this

state are sold to dealers or other persons for resale and selling cigarettes directly to at least forty

(40) dealers or other persons for resale; or

     (D) Maintaining one or more regular places of business in this state for that purpose;

provided, that seventy-five percent (75%) of the sold cigarettes are purchased directly from the

manufacturer and selling cigarettes directly to at least forty (40) dealers or other persons for

resale;

      (5) "Importer" means any person who imports into the United States, either directly or

indirectly, a finished cigarette for sale or distribution;

      (6) "Licensed", when used with reference to a manufacturer, importer, distributor or

dealer, means only those persons who hold a valid and current license issued under section 44-20-

2 for the type of business being engaged in. When the term "licensed" is used before a list of

entities, such as "licensed manufacturer, importer, wholesale dealer, or retailer dealer," such term

shall be deemed to apply to each entity in such list;

      (7) "Manufacturer" means any person who manufactures, fabricates, assembles,

processes, or labels a finished cigarette;

      (8) "Person" means any individual, firm, fiduciary, partnership, corporation, trust, or

association, however formed;

      (9) "Place of business" means and includes any place where cigarettes are sold or where

cigarettes are stored or kept for the purpose of sale or consumption, including any vessel, vehicle,

airplane, train, or vending machine;

      (10) "Sale" or "sell" includes and applies to gifts, exchanges, and barter;

      (11) "Stamp" means the impression, device, stamp, label, or print manufactured, printed,

or made as prescribed by the administrator to be affixed to packages of cigarettes, as evidence of

the payment of the tax provided by this chapter or to indicate that the cigarettes are intended for a

sale or distribution in this state that is exempt from state tax under the provisions of state law; and

also includes impressions made by metering machines authorized to be used under the provisions

of this chapter.

 

     SECTION 2. This act shall take effect upon passage.

     

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LC02002/SUB B

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