2012 -- S 2624

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LC01830

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO TAXATION - CIGARETTE TAX

     Introduced By: Senators Pichardo, Metts, and Perry

     Date Introduced: March 01, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 44-20-1 and 44-20-49 of the General Laws in Chapter 44-20

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entitled "Cigarette Tax" are hereby amended to read as follows:

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

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otherwise:

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      (1) "Administrator" means the tax administrator;

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

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form, and each sheet of cigarette rolling paper;

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      (i) Any cigarettes suitable for smoking in cigarette form;

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      (ii) Any roll, made wholly or in part of tobacco, irrespective of size or shape and

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irrespective of whether the tobacco is flavored, adulterated or mixed with any other ingredient,

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where such roll has a wrapper or cover made of any substance including tobacco or any other

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material, except where such roll is wrapped entirely in tobacco leaf and does not contain an

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internal filter or such roll weighs over four and a half (4.5) pounds per thousand (1,000); and

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     (iii) Any individual sheet of cigarette rolling paper;

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

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or distributes cigarettes to a consumer in this state;

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      (4) "Distributor" means any person:

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

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

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

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

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

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section 5712;

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

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(25) cigarette vending machines;

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

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

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

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

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(40) dealers or other persons for resale; or

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

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

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

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resale;

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

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indirectly, a finished cigarette for sale or distribution;

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

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

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

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

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

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

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processes, or labels a finished cigarette;

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

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association, however formed;

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

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

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airplane, train, or vending machine;

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

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      (11) “Snuff” means any finely cut, ground, or powdered tobacco that is not intended to

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be smoked; and

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

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

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evidence of the payment of the tax provided by this chapter or to indicate that the cigarettes are

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intended for a sale or distribution in this state that is exempt from state tax under the provisions of

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state law; and also includes impressions made by metering machines authorized to be used under

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the provisions of this chapter.

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     44-20-49. Disposition of revenue -- Payment of refunds. -- All moneys received by the

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tax administrator under the provisions of this chapter, except for the funds allocated to the tax

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administrator pursuant to section 44-20-19, are paid over to the general treasurer, and may be

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used for tobacco prevention, cessation, treatment and enforcement of current laws and policies.

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Whenever the tax administrator determines that any person is entitled to a refund of any moneys

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paid by that person under the provisions of this chapter, or whenever a court of competent

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jurisdiction orders a refund of any paid moneys, the general treasurer shall, upon certification by

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the tax administrator and with the approval of the controller, pay the refunds from any moneys in

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the treasury not appropriated without any further act or resolution making appropriation for any

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moneys.

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     SECTION 2. Sections 44-20.2-1 and 44-20.2-2 of the General Laws in Chapter 44-20.2

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entitled "Little Cigar Tax" are hereby repealed.

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     44-20.2-1. Definitions. -- Whenever used in this chapter, unless the context requires

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otherwise:

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      (1) "Administrator" means the tax administrator;

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

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or distributes little cigars to a consumer in this state;

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      (3) "Distributor" means any person:

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

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distributes little cigars within or into this state. Such term shall not include any little cigar

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

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section 5712, if such person sells or distributes little cigars in this state only to licensed

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distributors, or to an export warehouse proprietor or another manufacturer with a valid permit

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under 26 U.S.C. section 5712;

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      (ii) Selling little cigars directly to consumers in this state by means of at least twenty-five

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(25) little cigar vending machines.

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

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indirectly, a finished little cigar for sale or distribution;

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

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

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

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

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

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      (6) "Little cigars" means and includes any roll, made wholly or in part of tobacco,

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irrespective of size or shape and irrespective of whether the tobacco is flavored, adulterated or

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mixed with any other ingredient, where such roll has a wrapper or cover made of tobacco

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wrapped in leaf tobacco or any substance containing tobacco paper or any other material, except

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where such wrapper is wholly or in greater part made of tobacco and such roll weighs over three

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(3) pounds per thousand (1,000);

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

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processes, or labels a finished little cigar;

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

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association, however formed;

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

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where little cigars are stored or kept for the purpose of sale or consumption, including any vessel,

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vehicle, airplane, train, or vending machine;

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

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      (11) "Snuff" means any finely cut, ground, or powdered tobacco that is not intended to

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be smoked;

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

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

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of the payment of the tax provided by this chapter or to indicate that the little cigars are intended

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for a sale or distribution in this state that is exempt from state tax under the provisions of state

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

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provisions of this chapter.

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     44-20.2-2. Tax imposed on little cigars sold. -- The tax imposed on little cigars shall be

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imposed in accordance with the provisions of sections 44-20-2 -- 44-20-55.

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     SECTION 3. This act shall take effect upon passage.

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LC01830

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION - CIGARETTE TAX

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     This act would repeal chapters 44-20.2-1 and 44-20.2-2 relating to “Little Cigar Tax”,

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and amends the cigarette tax chapter to expand the tax thereunder to cover any roll of tobacco and

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snuff products.

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     This act would take effect upon passage.

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LC01830

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