2012 -- H 7455

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LC01327

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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: Representatives Ucci, and O`Neill

     Date Introduced: February 09, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 44-20-1 and 44-20-2 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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      (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 and shall have the same definition as found in

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section 11-9-13.4;

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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) "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 cigarettes, as evidence of

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

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

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

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of this chapter.;

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     (12) “Retail tobacco products dealer” shall have the same definition as in section 11-9-

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13.4;

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     (13) “Retail tobacco products dealer license” shall have the same definition as in section

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11-9-13.4;

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     (14) “Tobacco products” shall have the same definition as in section 11-9-13.4.

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     44-20-2. Importer, distributor, and dealer licenses required -- Licenses required. --

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Each person engaging in the business of selling cigarette tobacco products in this state, including

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any distributor or dealer, shall secure a license from the administrator before engaging in that

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business, or continuing to engage in it. A separate application and license is required for each

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place of business operated by a distributor or dealer; provided, that an operator of vending

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machines for cigarette products is not required to obtain a distributor's license for each machine.

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If the applicant for a license does not have a place of business in this state, the license shall be

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issued for such applicant's principal place of business, wherever located. A licensee shall notify

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the administrator within thirty (30) days in the event that it changes its principal place of

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business. A separate license is required for each class of business if the applicant is engaged in

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more than one of the activities required to be licensed by this section. No person shall maintain or

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operate or cause to be operated a vending machine for cigarette products without procuring a

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dealer's license for each machine.

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     SECTION 2. Chapter 44-20 of the General Laws entitled "Cigarette Tax" is hereby

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amended by adding thereto the following sections:

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     44-20-1.1. Legislative intent. – The legislature of the state, in order to safeguard life,

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health, property, and the public welfare of this state, and in order to provide a uniform system of

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regulation of tobacco products, finds and declares it is the policy of the state to provide for a

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state-wide regulation of tobacco products. The general assembly further finds and declares that it

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is the policy of this state that the department of administration, division of taxation, shall have the

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power to enforce the provisions of this chapter 44-20 (“Cigarette Tax”).

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     44-20-8.3. Preemption. -- The provisions of this chapter 44-20 (“Cigarette Tax”) shall be

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applicable and uniform throughout this state and in all political subdivisions and municipalities in

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the state, and no local authority shall enact or enforce any ordinance, rule, or regulation that is in

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conflict with the provisions of this chapter, unless expressly authorized by this chapter.

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     SECTION 3. This act shall take effect upon passage.

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LC01327

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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 add and amend definitions to the “Cigarette Tax”, and would also add a

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legislative intent to the chapter.

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     This act would take effect upon passage.

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LC01327

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