Senate Bill 2930

AN ACT TO AMEND SECTIONS 27-70-5 AND 27-70-19, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE FEE IMPOSED ON THE CIGARETTES OF MANUFACTURERS THAT DID NOT SIGN A TOBACCO SETTLEMENT AGREEMENT SHALL NOT APPLY TO CIGARETTES THAT ARE SOLD, PURCHASED OR OTHERWISE DISTRIBUTED IN THIS STATE FOR SALE OUTSIDE THIS STATE; TO PROVIDE THAT THE FEE IMPOSED ON SUCH CIGARETTES SHALL BE COLLECTED FROM CIGARETTE DISTRIBUTORS IN THE SAME MANNER AS THE EXCISE TAX ON CIGARETTES; TO PROVIDE THAT CIGARETTE DISTRIBUTORS SHALL BE ELIGIBLE FOR A REFUND OF THE FEE UNDER CERTAIN CIRCUMSTANCES; TO PROVIDE PENALTIES FOR CIGARETTE DISTRIBUTORS WHO VIOLATE THE PROVISIONS OF THE LAW THAT IMPOSE THE FEE ON NONSETTLING-MANUFACTURER CIGARETTES; TO AMEND SECTION 27-69-5, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT INFORMATION IN PERMITS ISSUED UNDER THE TOBACCO TAX LAW MAY BE DISCLOSED TO THE HOLDER OF A WHOLESALERS PERMIT AND TO LAW ENFORCEMENT AGENCIES OF THE STATE OR ANY POLITICAL SUBDIVISION OF THE STATE; TO AMEND SECTION 27-69-51, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF ANY WHOLESALER SUBJECT TO THE PROVISIONS OF THE TOBACCO TAX LAW SHALL CEASE TO DO BUSINESS IN THE STATE OF MISSISSIPPI, HE SHALL BE ALLOWED A REFUND OF THE TAX PAID ON CIGARETTES IN HIS POSSESSION; TO REPEAL SECTIONS 27-70-11, 27-70-13, 27-70-15, 27-70-17 AND 27-70-21, MISSISSIPPI CODE OF 1972, WHICH IMPOSE A FEE ON NONSETTLING CIGARETTE MANUFACTURERS, PROVIDE FOR THE COMPUTATION AND NOTICE OF THE FEE TO SUCH MANUFACTURERS, REQUIRE SUCH MANUFACTURERS TO CERTIFY THEIR COMPLIANCE WITH THE FEE REQUIREMENT, PROVIDE FOR A DIRECTORY OF CERTIFIED CIGARETTE MANUFACTURERS, REQUIRE CERTAIN CIGARETTE MANUFACTURERS TO PREPAY A FEE AND REQUIRE CERTAIN CIGARETTE MANUFACTURERS TO REGISTER WITH THE ATTORNEY GENERAL; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 27-70-5, Mississippi Code of 1972, is amended as follows:

27-70-5. (1) A fee is imposed on the sale, use, consumption or distribution in this state of * * * nonsettling-manufacturer cigarettes if a stamp is required to be affixed to a package of those cigarettes under the Tobacco Tax Law * * *.

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(2) The fee imposed by this chapter does not apply to cigarettes that are sold, purchased or otherwise distributed in this state for sale outside of this state. A person may not transport or cause to be transported from this state nonsettling-manufacturer cigarettes for sale in another state without first affixing to the cigarettes the stamp required by the state in which the cigarettes are to be sold or by paying any other excise tax on the cigarettes imposed by the state in which the cigarettes are to be sold.

(3) The distributor is eligible for a refund of the fee under this chapter in the same manner and for the same reasons as the excise tax is refundable under the excise tax law:

(a) For damaged goods;

(a) For cigarettes shipped into another state; or

(4) The fee imposed by this chapter does not apply to cigarettes that are included in computing payments due to be made by a settling manufacturer under the tobacco settlement agreement.

(5) The fee imposed by this chapter is in addition to any other privilege, license, fee or tax required or imposed by state law, including, but not limited to, the taxes levied by Section 27-69-13.

(6) * * * The fee imposed by this chapter is imposed, collected, paid, administered and enforced in the same manner * * * as the taxes levied by Section 27-69-13; however, no discount shall be allowed on such fee.

SECTION 2. Section 27-70-19, Mississippi Code of 1972, is amended as follows:

27-70-19. (1) If any distributor subject to the provisions of this chapter shall be found to have failed to properly report or pay the fee required under this chapter, or to have violated any of the provisions of this chapter or any rules or regulations promulgated by the commissioner under the authority of this chapter, there shall be collected from such distributor, in addition to the fee that may be due, a penalty of One Thousand Dollars ($1,000.00) per violation, and the commissioner or his duly authorized representative may make immediate demand upon the distributor for the payment of all such fees and penalties.

(2) In the event of a second violation by a distributor of this chapter or any rule or regulation promulgated by the commissioner under the authority of this chapter, the commissioner may, in addition to any other penalty, revoke any permit which may have been issued to the distributor.

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(3) All administrative provisions of the Mississippi Sales Tax Law, including those which fix damages, penalties and interest for nonpayment of taxes and for noncompliance with the provisions of that law, and all other requirements and duties imposed upon taxpayers, shall apply to all persons liable for the fees under this chapter, and the commissioner shall exercise all the power and authority and perform all duties with respect to taxpayers under this chapter as are provided under the Mississippi Sales Tax Law, except where there is a conflict, in which case this chapter shall control.

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SECTION 3. Section 27-69-5, Mississippi Code of 1972, is amended as follows:

27-69-5. (1) Every distributor, wholesaler, dealer or retailer who desires to become engaged in the sale or use of tobacco upon which a tax is required to be paid shall file with the commissioner an application for a permit to engage in such business. The application for a permit shall be filed on blanks to be furnished by the commissioner for that purpose. The application must be subscribed and sworn to by the person owning the business, or having an ownership interest in the business. If the applicant is a corporation, a duly authorized agent shall execute the application. The application shall show the name of such person, and in case of partnership, the name of each partner * * *, the person's post office address, the location of the place of business to which the permit shall apply, and the nature of the business in which engaged, and any other information the commissioner may require. No distributor, wholesaler, dealer or retailer shall sell any tobacco until the application has been filed, the prescribed permit fee paid, and the permit obtained. Except as otherwise provided in this subsection, the permit shall expire on January 31 of each year. However, a retail permit shall continue in force during the time that the permit holder to whom it is issued continues in the same business at the same location unless such permit is revoked by the commissioner for cause or is revoked pursuant to any provision of Section 27-70-1 et seq. or the Mississippi Juvenile Tobacco Access Prevention Act in Sections 97-32-1 through 97-32-23.

(2) An application shall be filed, and a permit obtained for each place of business owned or operated by each distributor, wholesaler, dealer or retailer.

(3) Upon receipt of the application and any permit fee * * * provided for in this chapter, the commissioner may issue to every distributor, wholesaler, dealer or retailer, for the place of business designated, a nonassignable permit, authorizing the sale or use of tobacco in the state. The permit shall provide that it is revocable, and may be forfeited or suspended upon violation of any provision of this chapter, the Mississippi Tobacco Youth Access Prevention Act of 1997, Section 27-7-7 et seq. or any rule or regulation adopted by the commissioner. If the permit is revoked or suspended, the distributor, wholesaler, dealer or retailer shall not sell any tobacco from the place of business until a new permit is granted, or the suspension of the old permit removed.

(4) A permit cannot be transferred from one person to another, and the permit shall at all times be publicly displayed by the distributor, wholesaler, dealer or retailer in his place of business so as to be seen easily by the public. A permit may be refused to any person previously convicted of violations of this chapter or Section 27-70-1.

(5) Information contained on a permit may be disclosed to the holder of a wholesalers permit and to law enforcement agencies of the state or any political subdivision of the state.

SECTION 4. Section 27-69-51, Mississippi Code of 1972, is amended as follows:

27-69-51. (1) If any wholesaler subject to the provisions of this chapter shall sell or ship or transport any cigarettes into another state to a regular dealer, he shall be allowed a refund of the tax paid on those cigarettes. The refund shall be made by way of new stamps issued to him by the commissioner upon application accompanied by sworn acknowledgment from the purchaser, showing the units, items and date of delivery, the acknowledgment to state that he has received such cigarettes, and that stamps of an aggregate value, of which refund is requested, were on the cigarettes so acknowledged; provided further, that the acknowledgment shall show that the stamps affixed to the cigarettes, for which refund is requested, have had the cancellation marked "void" by ink, or by imprinting.

(2) If any wholesaler subject to the provisions of this chapter shall cease to do business in the State of Mississippi, he shall be allowed a refund of the tax paid on cigarettes in his possession. Such refund request shall be accompanied by a sworn acknowledgement that the wholesaler is no longer doing business in the State of Mississippi and the acknowledgment must state that stamps with a value in the amount of the refund being requested are being returned prior to use.

SECTION 5. Sections 27-70-11, 27-70-13, 27-70-15, 27-70-17 and 27-70-21, Mississippi Code of 1972, which impose a fee on nonsettling-cigarette manufacturers, provide for the computation and notice of the fee to such manufacturers, require such manufacturers to certify their compliance with the fee requirement, provide for a directory of certified cigarette manufacturers, require certain cigarette manufacturers to prepay a fee and require certain cigarette manufacturers to register with the Attorney General, are repealed.

SECTION 6. This act shall take effect and be in force from and after July 1, 2010.