Bill Text: FL S0758 | 2016 | Regular Session | Introduced
Bill Title: Cigarette Surcharge and Tax
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Failed) 2016-03-11 - Died in Regulated Industries [S0758 Detail]
Download: Florida-2016-S0758-Introduced.html
Florida Senate - 2016 SB 758
By Senator Clemens
27-00962-16 2016758__
1 A bill to be entitled
2 An act relating to cigarette surcharge and tax;
3 amending ss. 210.011 and 210.02, F.S.; revising
4 provisions relating to the surcharge and tax on the
5 sale, receipt, purchase, possession, consumption,
6 handling, distribution, and use of cigarettes;
7 defining the term “standard package of cigarettes”;
8 amending s. 210.04, F.S.; deleting a provision that
9 authorizes the Division of Alcoholic Beverages and
10 Tobacco of the Department of Business and Professional
11 Regulation to authorize manufacturers to distribute
12 free sample packages of cigarettes; amending ss.
13 210.06, 210.085, and 215.5602, F.S.; conforming
14 provisions; providing an effective date.
15
16 Be It Enacted by the Legislature of the State of Florida:
17
18 Section 1. Section 210.011, Florida Statutes, is amended to
19 read:
20 210.011 Cigarette surcharge levied; collection.—
21 (1) A surcharge of $2, in addition to all other taxes of
22 every kind levied by law, is levied upon the sale, receipt,
23 purchase, possession, consumption, handling, distribution, and
24 use of cigarettes in this state, in the following amounts,
25 except as otherwise provided in subsections (2)-(5), for a
26 standard package of cigarettes. For purposes of this section,
27 the term “standard package of cigarettes” means a package of 20
28 cigarettes, pursuant to 21 C.F.R. s. 1140.16(b) of standard
29 dimensions:
30 (a) Upon all cigarettes weighing not more than 3 pounds per
31 thousand, 5 cents on each cigarette.
32 (b) Upon all cigarettes weighing more than 3 pounds per
33 thousand and not more than 6 inches long, 10 cents on each
34 cigarette.
35 (c) Upon all cigarettes weighing more than 3 pounds per
36 thousand and more than 6 inches long, 20 cents on each
37 cigarette.
38 (2) An additional surcharge of 4.2 cents is levied upon
39 each The descriptions of cigarettes contained in subsection (1)
40 are declared to be standard as to dimensions for the purpose of
41 levying a surcharge as provided in this section. If any
42 cigarette that is received, purchased, possessed, sold, offered
43 for sale, given away, or used in which is of a package size
44 other than a those standard package of cigarettes dimensions,
45 the cigarette is subject to a surcharge at the rate of 4.2 cents
46 on each cigarette.
47 (3) When cigarettes as described in paragraph (1)(a) are
48 packed in varying quantities of 20 cigarettes or fewer, except
49 the manufacturer’s free samples authorized under s. 210.04(9),
50 the following rates shall govern:
51 (a) Packages containing 10 cigarettes or fewer require a
52 surcharge of 50 cents.
53 (b) Packages containing more than 10 but not more than 20
54 cigarettes require a surcharge of $1.
55 (4) When cigarettes as described in paragraph (1)(b) are
56 packed in varying quantities of 20 cigarettes or fewer, except
57 the manufacturer’s free samples authorized under s. 210.04(9),
58 the following rates shall govern:
59 (a) Packages containing 10 cigarettes or fewer require a
60 surcharge of $1.
61 (b) Packages containing more than 10 but not more than 20
62 cigarettes require a surcharge of $2.
63 (5) When cigarettes as described in paragraph (1)(c) are
64 packed in varying quantities of 20 cigarettes or fewer, except
65 the manufacturer’s free samples authorized under s. 210.04(9),
66 the following rates shall govern:
67 (a) Packages containing 10 cigarettes or fewer require a
68 surcharge of $2.
69 (b) Packages containing more than 10 but not more than 20
70 cigarettes require a surcharge of $4.
71 (3)(6) This surcharge shall be paid by the dealer to the
72 division for deposit and distribution as hereinafter provided
73 upon the first sale or transaction within the state, whether
74 such sale or transfer is to the ultimate purchaser or consumer.
75 The seller or dealer shall collect the surcharge from the
76 purchaser or consumer, and the purchaser or consumer shall pay
77 the surcharge to the seller. The seller or dealer is responsible
78 for the collection of the surcharge and payment of the surcharge
79 to the division. All surcharges are due not later than the 10th
80 day of the month following the calendar month in which they were
81 incurred, and thereafter shall bear interest at the rate of 1
82 percent per month. If the amount of surcharge due for a given
83 period is assessed without allocating it to any particular
84 month, the interest begins accruing on the date of the
85 assessment. Whenever cigarettes are shipped from outside the
86 state to anyone other than a distributing agent or wholesale
87 dealer, the person receiving the cigarettes is responsible for
88 the surcharge on the cigarettes and payment of the surcharge to
89 the division.
90 (4)(7) It is the legislative intent that the surcharge on
91 cigarettes be uniform throughout the state.
92 (5)(8) The surcharge levied under this section shall be
93 administered, collected, and enforced in the same manner as the
94 tax imposed under s. 210.02.
95 (6)(9) Revenue produced from the surcharge levied under
96 this section shall be deposited into the Health Care Trust Fund
97 within the Agency for Health Care Administration.
98 Section 2. Section 210.02, Florida Statutes, is amended to
99 read:
100 210.02 Cigarette tax imposed; collection.—
101 (1) An excise or privilege tax of 33.9 cents, in addition
102 to all other taxes of every kind imposed by law, is imposed upon
103 the sale, receipt, purchase, possession, consumption, handling,
104 distribution, and use of cigarettes in this state, in the
105 following amounts, except as hereinafter otherwise provided, for
106 a standard package of cigarettes. For purposes of this section,
107 the term “standard package of cigarettes” means a package of 20
108 cigarettes, pursuant to 21 C.F.R. s. 1140.16(b) of standard
109 dimensions:
110 (a) Upon all cigarettes weighing not more than 3 pounds per
111 thousand, 16.95 mills on each cigarette.
112 (b) Upon all cigarettes weighing more than 3 pounds per
113 thousand and not more than 6 inches long, 33.9 mills on each
114 cigarette.
115 (c) Upon all cigarettes weighing more than 3 pounds per
116 thousand and more than 6 inches long, 67.8 mills on each
117 cigarette.
118 (2) An additional tax of 1.41 cents is imposed upon each
119 The description of cigarettes contained in paragraphs (a), (b),
120 and (c) of subsection (1) are hereby declared to be standard as
121 to dimensions for taxing purposes as provided in this law and
122 Should any cigarette that is be received, purchased, possessed,
123 sold, offered for sale, given away, or used in of a package size
124 other than a of standard package of cigarettes dimensions, the
125 same shall be taxed at the rate of 1.41 cents on each such
126 cigarette.
127 (3) When cigarettes as described in paragraph (1)(a) are
128 packed in varying quantities of 20 cigarettes or less, except
129 manufacturer’s free samples authorized under s. 210.04(9), the
130 following rate shall govern:
131 (a) Packages containing 10 cigarettes or less require a
132 16.95-cent tax.
133 (b) packages containing more than 10 but not more than 20
134 cigarettes require a 33.9-cent tax.
135 (4) When cigarettes as described in paragraph (1)(b) are
136 packed in varying quantities of 20 cigarettes or less, except
137 manufacturer’s free samples authorized under s. 210.04(9), the
138 following rates shall govern:
139 (a) Packages containing 10 cigarettes or less require a
140 33.9-cent tax.
141 (b) Packages containing more than 10 but not more than 20
142 cigarettes require a 67.8-cent tax.
143 (5) When cigarettes as described in paragraph (1)(c) are
144 packed in varying quantities of 20 cigarettes or less, except
145 manufacturer’s free samples authorized under s. 210.04(9), the
146 following rates shall govern:
147 (a) Packages containing 10 cigarettes or less require a
148 67.8-cent tax.
149 (b) Packages containing more than 10 but not more than 20
150 cigarettes require a 135.6-cent tax.
151 (3)(6) This tax shall be paid by the dealer to the division
152 for deposit and distribution as hereinafter provided upon the
153 first sale or transaction within the state, whether or not such
154 sale or transfer is be to the ultimate purchaser or consumer.
155 The seller or dealer shall collect the tax from the purchaser or
156 consumer, and the purchaser or consumer shall pay the tax to the
157 seller. The seller or dealer is shall be responsible for the
158 collection of the tax and the payment of the tax same to the
159 division. All taxes are due not later than the 10th day of the
160 month following the calendar month in which they were incurred,
161 and thereafter shall bear interest at the rate of 1 percent per
162 month. If the amount of tax due for a given period is assessed
163 without allocating it to any particular month, the interest
164 begins accruing on shall begin with the date of the assessment.
165 Whenever cigarettes are shipped from outside the state to anyone
166 other than a distributing agent or wholesale dealer, the person
167 receiving the cigarettes is shall be responsible for the tax on
168 the said cigarettes and the payment of the tax same to the
169 division.
170 (4)(7) It is the legislative intent that the tax on
171 cigarettes shall be uniform throughout the state.
172 Section 3. Subsection (9) of section 210.04, Florida
173 Statutes, is amended to read:
174 210.04 Construction; exemptions; collection.—
175 (9) Agents, located within or without the state, shall
176 purchase stamps and affix such stamps in the manner prescribed
177 to packages or containers of cigarettes to be sold, distributed,
178 or given away within the state, in which case any dealer
179 subsequently receiving such stamped packages of cigarettes will
180 not be required to purchase and affix stamps on such packages of
181 cigarettes. However, the division may, in its discretion,
182 authorize manufacturers to distribute in the state free sample
183 packages of cigarettes containing not less than 2 or more than
184 20 cigarettes without affixing any surcharge and tax stamps
185 provided copies of shipping invoices on such cigarettes are
186 furnished, and payment of all surcharges and taxes imposed on
187 such cigarettes by law is made, directly to the division not
188 later than the 10th day of each calendar month. The surcharge
189 and tax on cigarettes in sample packages shall be based on a
190 unit in accordance with the surcharges levied under s.
191 210.011(1) and the taxing provisions of s. 210.02(1).
192 Section 4. Subsection (5) of section 210.06, Florida
193 Statutes, is amended to read:
194 210.06 Affixation of stamps; presumption.—
195 (5) Except as provided in s. 210.04(9) or s. 210.09(1), no
196 person, other than a dealer or distributing agent that receives
197 unstamped cigarette packages directly from a cigarette
198 manufacturer or importer in accordance with this section and s.
199 210.085, shall hold or possess an unstamped cigarette package.
200 Dealers shall be permitted to set aside, without application of
201 stamps, only such part of the dealer’s stock that is identified
202 for sale or distribution outside this state. If a dealer
203 maintains stocks of unstamped cigarette packages, such unstamped
204 packages shall be stored separately from stamped product
205 packages. No unstamped cigarette packages shall be transferred
206 by a dealer to another facility of the dealer within this state
207 or to another person within this state.
208 Section 5. Section 210.085, Florida Statutes, is amended to
209 read:
210 210.085 Transactions only with permitted manufacturers,
211 importers, distributing agents, dealers, and retail dealers.
212 Except as otherwise provided in s. 210.04(9), A manufacturer or
213 importer, or a distributing agent representing a manufacturer or
214 importer, may sell or distribute cigarettes to a person located
215 or doing business within this state only if such person is a
216 dealer or importer with a valid, current permit under s. 210.15.
217 A distributing agent may accept cigarettes from a manufacturer
218 or importer with a valid, current permit for transfer to a
219 dealer with a valid, current permit but may not own or sell
220 cigarettes. A dealer may sell or distribute cigarettes to a
221 person located or doing business within this state only if such
222 person is a dealer or retail dealer with a valid, current permit
223 under s. 569.003. A dealer may obtain cigarettes only from a
224 manufacturer or importer or from a distributing agent or dealer
225 with a valid, current permit under s. 210.15. A retail dealer
226 may obtain cigarettes only from a dealer with a valid, current
227 permit under s. 210.15.
228 Section 6. Paragraph (a) of subsection (12) of section
229 215.5602, Florida Statutes, is amended to read:
230 215.5602 James and Esther King Biomedical Research
231 Program.—
232 (12)(a) Beginning in the 2011-2012 fiscal year and
233 thereafter, $25 million from the revenue deposited into the
234 Health Care Trust Fund pursuant to ss. 210.011(6) 210.011(9) and
235 210.276(7) shall be reserved for research of tobacco-related or
236 cancer-related illnesses. Of the revenue deposited in the Health
237 Care Trust Fund pursuant to this section, $25 million shall be
238 transferred to the Biomedical Research Trust Fund within the
239 Department of Health. Subject to annual appropriations in the
240 General Appropriations Act, $5 million shall be appropriated to
241 the James and Esther King Biomedical Research Program, and $5
242 million shall be appropriated to the William G. “Bill” Bankhead,
243 Jr., and David Coley Cancer Research Program created under s.
244 381.922.
245 Section 7. This act shall take effect July 1, 2016.
