2015 -- H 5327 | |
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LC000039 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2015 | |
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A N A C T | |
RELATING TO TAXATION - CIGARETTE TAX-MINIMUM PRICE OF CIGARETTES | |
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Introduced By: Representatives Phillips, Morin, Casey, Edwards, and Hull | |
Date Introduced: February 05, 2015 | |
Referred To: House Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 44-20-12 of the General Laws in Chapter 44-20 entitled "Cigarette |
2 | Tax" is hereby amended to read as follows: |
3 | 44-20-12. Tax imposed on cigarettes sold. -- A tax is imposed on all cigarettes sold or |
4 | held for sale in the state. The payment of the tax to be evidenced by stamps, which may be |
5 | affixed only by licensed distributors to the packages containing such cigarettes. Any cigarettes on |
6 | which the proper amount of tax provided for in this chapter has been paid, payment being |
7 | evidenced by the stamp, is not subject to a further tax under this chapter. The tax is at the rate of |
8 | one hundred seventy-five (175) one hundred fifty (150) mills for each cigarette. |
9 | SECTION 2. Chapter 44-20 of the General Laws entitled "Cigarette Tax" is hereby |
10 | amended by adding thereto the following section: |
11 | 44-20-12.5. Minimum pricing of cigarettes. -- Notwithstanding any rule, regulation or |
12 | state law to the contrary, a minimum markup of fifteen percent (15%) shall be added to the total |
13 | cost of cigarettes sold by a retailer. The total cost shall include the invoice cost of the |
14 | merchandise to the retailer plus the cigarette excise tax imposed by ยง 44-20-12 plus freight |
15 | charges and cartage cost to the retail outlet if performed or paid for by the retailer. The minimum |
16 | markup of fifteen percent (15%) shall not be deemed to be an unfair sales practice pursuant to |
17 | chapter 13 of title 6. The tax administrator shall promulgate rules and regulations consistent with |
18 | this section. |
19 | SECTION 3. Section 6-13-1 of the General Laws in Chapter 6-13 entitled "Unfair Sales |
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1 | Practices" is hereby amended to read as follows: |
2 | 6-13-1. Definitions. -- (a) "Cost to the retailer" means the invoice cost of the |
3 | merchandise to the retailer within thirty (30) days prior to the date of the sale, or the replacement |
4 | cost of the merchandise to the retailer within thirty (30) days prior to the date of the sale, in the |
5 | quantity last purchased, whichever is lower; less all trade discounts except customary discounts |
6 | for cash; to which shall be added: |
7 | (1) Freight charges not otherwise included in the cost of the merchandise; |
8 | (2) Cartage to the retail outlet if performed or paid for by the retailer, which cartage cost |
9 | shall be deemed to be three-fourths of one percent (0.75%) of the cost of the merchandise to the |
10 | retailer, unless the retailer claims and proves a lower cartage cost; and |
11 | (3) A markup to cover in part the cost of doing business, which markup, in the absence |
12 | of proof of a lesser cost, shall be six percent (6%) of the total cost at the retail outlet. |
13 | (b) "Cost to the wholesaler" means the invoice cost of the merchandise to the wholesaler |
14 | within thirty (30) days prior to the date of the sale, or the replacement cost of the merchandise to |
15 | the wholesaler within thirty (30) days prior to the date of the sale, in the quantity last purchased, |
16 | whichever is lower; less all trade discounts except customary discounts for cash; to which shall be |
17 | added: |
18 | (1) Freight charges not otherwise included in the cost of the merchandise; |
19 | (2) Cartage to the retail outlet if performed or paid for by the wholesaler, which cartage |
20 | cost shall be deemed to be three-fourths of one percent (0.75%) of the cost of the merchandise to |
21 | the wholesaler, unless the wholesaler claims and proves a lower cartage cost; and |
22 | (3) A markup to cover in part the cost of doing business, which markup, in the absence |
23 | of proof of a lesser cost, shall be two percent (2%) of the total cost at the wholesale |
24 | establishment. Provided, for the sales of cigarettes there shall be a minimum markup of fifteen |
25 | percent (15%). |
26 | (c) Where two (2) or more items are advertised; offered for sale; or sold at a combined |
27 | price; the price of each item shall be determined in the manner stated in subsections (a) and (b). |
28 | (d) "Sell at retail", "sales at retail", and "retail sale" mean and include any transfer of title |
29 | to tangible personal property for a valuable consideration made in the ordinary course of trade or |
30 | in the usual prosecution of the seller's business to the purchaser for consumption or use other than |
31 | resale or further processing or manufacturing. In this and in the preceding subsection the previous |
32 | terms shall include any transfer of property where title is retained by the seller as security for the |
33 | payment of the purchase price. |
34 | (e) "Retailer" means and includes every person, co-partnership, corporation, or |
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1 | association engaged in the business of making sales at retail within this state; provided, that, in |
2 | the case of a retailer engaged in the business of making sales both at retail and at wholesale, the |
3 | term shall be applied only to the retail portion of the business. |
4 | (f) "Wholesaler" means and includes every person, partnership, corporation, or |
5 | association engaged in the business of making sales at wholesale within this state; provided, that, |
6 | in the case of a wholesaler engaged in the business of making sales both at wholesale and at |
7 | retail, the term shall be applied only to the wholesale portion of the business. |
8 | (g) Whenever any person, partnership, corporation, or association in the course of doing |
9 | business performs the functions of both wholesaler and retailer without actually being engaged in |
10 | the business of making sales at wholesale, the term "wholesaler" means and includes that function |
11 | of the business of preparation for sale at the retail outlet, and the term "retailer" shall be applied |
12 | only to the retail portion of the business. |
13 | (h) "Household" means and includes those who dwell under the same roof, house, or |
14 | apartment. |
15 | (i) "Rebate" means a refund of a portion of the purchase price made to consumer to |
16 | induce purchase of product. |
17 | SECTION 4. This act shall take effect upon passage. |
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LC000039 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO TAXATION - CIGARETTE TAX-MINIMUM PRICE OF CIGARETTES | |
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1 | This act would reduce the cigarette tax by fifty cents ($0.50) per pack and require a |
2 | fifteen percent (15%) minimum markup be added to the total cost of cigarettes sold by retailers. |
3 | This act would take effect upon passage. |
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LC000039 | |
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