Chapter
104
2008 -- H 7350 SUBSTITUTE A AS AMENDED
Enacted 06/27/08
A N A C T
RELATING TO TAXATION
-- CIGARETTE TAX
Introduced By: Representatives Shanley, Williamson, Diaz, Malik, and Loughlin
Date Introduced: February
05, 2008
It is
enacted by the General Assembly as follows:
SECTION
1. Sections 44-20-1 and 44-20-13.2 of the General Laws in Chapter 44-20
entitled
"Cigarette Tax" are 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.
(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) “Snuff” means any finely cut,
ground, or powdered tobacco that is not intended to be
smoked;
(12) (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
subsection
44-20-12.3(a) state law; and
also includes impressions made by metering machines
authorized
to be used under the provisions of this chapter.
44-20-13.2.
Tax imposed on smokeless tobacco, cigars, little cigars and pipe tobacco
products.
-- (a) A tax is imposed on all
smokeless tobacco, cigars, and pipe tobacco products sold
or held
for sale in the state by any person, the payment of the tax to be accomplished
according to a
mechanism
established by the administrator, division of taxation, department of
administration.
Any
tobacco product on which the proper amount of tax provided for in this chapter
has been
paid,
payment being evidenced by a stamp, is not subject to a further tax under this
chapter. The
tax
imposed by this section shall be as follows:
(1) At the rate of forty percent (40%) of the wholesale cost of cigars, pipe
tobacco
products
and smokeless tobacco other than snuff.
(2) Notwithstanding the forty percent (40%) rate in subsection (a) above, in
the case of
cigars,
the tax shall not exceed fifty cents ($.50) for each cigar. for the
period July 1, 2006
through
June 30, 2008.
(3) At the rate of one dollar ($1.00) per ounce of snuff, and a proportionate
tax at the like
rate on
all fractional parts of an ounce thereof. Such tax shall be computed based on
the net
weight
as listed by the manufacturer, provided, however, that any product listed by
the
manufacturer
as having a net weight of less than 1.2 ounces shall be taxed as if the product
has a
net
weight of 1.2 ounces.
(b) The proceeds collected are paid into the general fund.
SECTION
2. Title 44 of the General Laws entitled "TAXATION" is hereby amended
by
adding
thereto the following chapter:
CHAPTER 20.2
LITTLE CIGAR TAX
44-20.2-1.
Definitions. – Whenever used in this chapter, unless the context
requires
otherwise:
(1)
“Administrator” means the tax administrator;
(2)
“Little cigars” means and includes any roll, made wholly or in part of tobacco,
irrespective
of size or shape and irrespective of whether the tobacco is flavored,
adulterated or
mixed
with any other ingredient, where such roll has a wrapper or cover made of
tobacco
wrapped
in leaf tobacco or any substance containing tobacco paper or any other material,
except
where
such wrapper is wholly or in greater part made of tobacco and such roll weighs
over three
(3)
pounds per thousand (1,000);
(3)
“Dealer” means any person whether located within or outside of this state, who
sells
or
distributes little cigars 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
little cigars within or into this state. Such term shall not include any little
cigar
manufacturer,
export warehouse proprietor, or importer with a valid permit under 26 U.S.C.
section
5712, if such person sells or distributes little cigars 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 little cigars directly to consumers in this state by means of at least
twenty-five
(25)
little cigar vending machines.
(5)
“Importer” means any person who imports into the United States, either directly
or
indirectly,
a finished little cigar 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 little cigar;
(8)
“Person” means any individual, firm, fiduciary, partnership, corporation,
trust, or
association,
however formed;
(9)
“Place of business” means and includes any place where little cigars are sold
or where
little
cigars 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)
“Snuff” means any finely cut, ground, or powdered tobacco that is not intended
to be
smoked;
(12)
“Stamp” means the impression, device, stamp, label, or print manufactured,
printed,
or
made as prescribed by the administrator to be affixed to packages of little
cigars, as evidence
of
the payment of the tax provided by this chapter or to indicate that the little
cigars 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.
44-20.2-2. Tax imposed on little
cigars sold. – The tax imposed on little cigars shall be
imposed
in accordance with the provisions of sections 44-20-2 through 44-20-55.
SECTION
3. Section 11-9-13.4 of the General Laws in Chapter 11-9 entitled "Children"
is
hereby amended to read as follows:
11-9-13.4.
Definitions. -- As used in this chapter:
(1) "Bidi cigarette" means any product that (i) contains tobacco that
is wrapped in
temburni
or tender leaf or that is wrapped in any other material identified by rules of
the
Department
of Health that is similar in appearance or characteristics to the temburni or
tender leaf
and (ii)
does not contain a smoke filtering device.
(2) "Court" means any appropriate district court of the state of Rhode
Island.
(3) "Dealer" is synonymous with the term "retail tobacco
products dealer".
(4) "Department of mental health, retardation and hospitals" means
the state of Rhode
Island
mental health, retardation and hospitals department, its employees, agents or
assigns.
(5) "Department of taxation" means the state of Rhode Island taxation
division, its
employees,
agents, or assigns.
(6) "License" is synonymous with the term "retail tobacco
products dealer license."
(7) "License holder" is synonymous with the term "retail tobacco
products dealer."
(8) "Person" means any individual person, firm, association, or
corporation licensed as a
retail
dealer to sell tobacco products within the state.
(9) "Retail tobacco products dealer" means the holder of a license to
sell tobacco
products
at retail.
(10) "Retail tobacco products dealer license" means a license to sell
tobacco products at
retail
as issued by the department of taxation.
(11) "Spitting tobacco" also means snuff, powdered tobacco, chewing
tobacco, dipping
tobacco,
pouch tobacco or smokeless tobacco.
(12) "Tobacco product(s)" means any product containing tobacco,
including bidi
cigarettes,
as defined in subdivision (1) of this section, which can be used for, but whose
use is
not
limited to, smoking, sniffing, chewing or spitting of the product.
(13) "Underage individual" or "underage individuals" means
any child under the age of
eighteen
(18) years of age.
(14)
“Little cigars” means and includes any roll, made wholly or in part of tobacco,
irrespective
of size or shape and irrespective of whether the tobacco is flavored,
adulterated or
mixed
with any other ingredient, where such roll has a wrapper or cover made of
tobacco
wrapped
in leaf tobacco or any substance containing tobacco paper or any other
material, except
where
such wrapper is wholly or in greater part made of tobacco and such roll weighs
over three
(3)
pounds per thousand (1,000).
SECTION
4. This act shall take effect upon passage.
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LC01257/SUB A/2
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