Bill Text: OH SB250 | 2011-2012 | 129th General Assembly | Introduced
Bill Title: To increase the tobacco products excise tax rate and to add dissolvable tobacco products to the kinds of products subject to the tax.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-11-08 - To Ways & Means & Economic Development [SB250 Detail]
Download: Ohio-2011-SB250-Introduced.html
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Senator Tavares
To amend sections 5743.01, 5743.51, 5743.62, and | 1 |
5743.63 of the Revised Code to increase the | 2 |
tobacco products excise tax rate and to add | 3 |
dissolvable tobacco products to the kinds of | 4 |
products subject to the tax. | 5 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5743.01, 5743.51, 5743.62, and | 6 |
5743.63 of the Revised Code be amended to read as follows: | 7 |
Sec. 5743.01. As used in this chapter: | 8 |
(A) "Person" includes individuals, firms, partnerships, | 9 |
associations, joint-stock companies, corporations, combinations of | 10 |
individuals of any form, and the state and any of its political | 11 |
subdivisions. | 12 |
(B) "Wholesale dealer" includes only those persons: | 13 |
(1) Who bring in or cause to be brought into this state | 14 |
unstamped cigarettes purchased directly from the manufacturer, | 15 |
producer, or importer of cigarettes for sale in this state but | 16 |
does not include persons who bring in or cause to be brought into | 17 |
this state cigarettes with respect to which no evidence of tax | 18 |
payment is required thereon as provided in section 5743.04 of the | 19 |
Revised Code; or | 20 |
(2) Who are engaged in the business of selling cigarettes or | 21 |
tobacco products to others for the purpose of resale. | 22 |
"Wholesale dealer" does not include any cigarette | 23 |
manufacturer, export warehouse proprietor, or importer with a | 24 |
valid permit under 26 U.S.C. 5713 if that person sells cigarettes | 25 |
in this state only to wholesale dealers holding valid and current | 26 |
licenses under section 5743.15 of the Revised Code or to an export | 27 |
warehouse proprietor or another manufacturer. | 28 |
(C) "Retail dealer" includes: | 29 |
(1) In reference to dealers in cigarettes, every person other | 30 |
than a wholesale dealer engaged in the business of selling | 31 |
cigarettes in this state, regardless of whether the person is | 32 |
located in this state or elsewhere, and regardless of quantity, | 33 |
amount, or number of sales; | 34 |
(2) In reference to dealers in tobacco products, any person | 35 |
in this state engaged in the business of selling tobacco products | 36 |
to ultimate consumers in this state, regardless of quantity, | 37 |
amount, or number of sales. | 38 |
(D) "Sale" includes exchange, barter, gift, offer for sale, | 39 |
and distribution, and includes transactions in interstate or | 40 |
foreign commerce. | 41 |
(E) "Cigarettes" includes any roll for smoking made wholly or | 42 |
in part of tobacco, irrespective of size or shape, and whether or | 43 |
not such tobacco is flavored, adulterated, or mixed with any other | 44 |
ingredient, the wrapper or cover of which is made of paper, | 45 |
reconstituted cigarette tobacco, homogenized cigarette tobacco, | 46 |
cigarette tobacco sheet, or any similar materials other than cigar | 47 |
tobacco. | 48 |
(F) "Package" means the individual package, box, or other | 49 |
container in or from which retail sales of cigarettes are normally | 50 |
made or intended to be made. | 51 |
(G) "Stamp" includes an impression made by a metering device | 52 |
as provided for in section 5743.04 of the Revised Code. | 53 |
(H) "Storage" includes any keeping or retention of cigarettes | 54 |
or tobacco products for use or consumption in this state. | 55 |
(I) "Use" includes the exercise of any right or power | 56 |
incidental to the ownership of cigarettes or tobacco products. | 57 |
(J) "Tobacco product" or "other tobacco product" means any | 58 |
product made from tobacco, other than cigarettes, that is made | 59 |
60 | |
orally, and snuff. | 61 |
(K) "Wholesale price" means the invoice price, including all | 62 |
federal excise taxes, at which the manufacturer of the tobacco | 63 |
product sells the tobacco product to unaffiliated distributors, | 64 |
excluding any discounts based on the method of payment of the | 65 |
invoice or on time of payment of the invoice. If the taxpayer buys | 66 |
from other than a manufacturer, "wholesale price" means the | 67 |
invoice price, including all federal excise taxes and excluding | 68 |
any discounts based on the method of payment of the invoice or on | 69 |
time of payment of the invoice. | 70 |
(L) "Distributor" means: | 71 |
(1) Any manufacturer who sells, barters, exchanges, or | 72 |
distributes tobacco products to a retail dealer in the state, | 73 |
except when selling to a retail dealer that has filed with the | 74 |
manufacturer a signed statement agreeing to pay and be liable for | 75 |
the tax imposed by section 5743.51 of the Revised Code; | 76 |
(2) Any wholesale dealer located in the state who receives | 77 |
tobacco products from a manufacturer, or who receives tobacco | 78 |
products on which the tax imposed by this chapter has not been | 79 |
paid; | 80 |
(3) Any wholesale dealer located outside the state who sells, | 81 |
barters, exchanges, or distributes tobacco products to a wholesale | 82 |
or retail dealer in the state; or | 83 |
(4) Any retail dealer who receives tobacco products on which | 84 |
the tax has not or will not be paid by another distributor, | 85 |
including a retail dealer that has filed a signed statement with a | 86 |
manufacturer in which the retail dealer agrees to pay and be | 87 |
liable for the tax that would otherwise be imposed on the | 88 |
manufacturer by section 5743.51 of the Revised Code. | 89 |
(M) "Taxpayer" means any person liable for the tax imposed by | 90 |
section 5743.51, 5743.62, or 5743.63 of the Revised Code. | 91 |
(N) "Seller" means any person located outside this state | 92 |
engaged in the business of selling tobacco products to consumers | 93 |
for storage, use, or other consumption in this state. | 94 |
(O) "Manufacturer" means any person who manufactures and | 95 |
sells cigarettes or tobacco products. | 96 |
(P) "Importer" means any person that is authorized, under a | 97 |
valid permit issued under Section 5713 of the Internal Revenue | 98 |
Code, to import finished cigarettes into the United States, either | 99 |
directly or indirectly. | 100 |
Sec. 5743.51. (A) To provide revenue for the general revenue | 101 |
fund of the state, an excise tax on tobacco products is hereby | 102 |
levied at the rate of | 103 |
wholesale price of the tobacco product received by a distributor | 104 |
or sold by a manufacturer to a retail dealer located in this | 105 |
state. Each distributor who brings tobacco products, or causes | 106 |
tobacco products to be brought, into this state for distribution | 107 |
within this state, or any out-of-state distributor who sells | 108 |
tobacco products to wholesale or retail dealers located in this | 109 |
state for resale by those wholesale or retail dealers is liable | 110 |
for the tax imposed by this section. Only one sale of the same | 111 |
article shall be used in computing the amount of the tax due. | 112 |
(B) The treasurer of state shall place to the credit of the | 113 |
tax refund fund created by section 5703.052 of the Revised Code, | 114 |
out of the receipts from the tax levied by this section, amounts | 115 |
equal to the refunds certified by the tax commissioner pursuant to | 116 |
section 5743.53 of the Revised Code. The balance of the taxes | 117 |
collected under this section shall be paid into the general | 118 |
revenue fund. | 119 |
(C) The commissioner may adopt rules as are necessary to | 120 |
assist in the enforcement and administration of sections 5743.51 | 121 |
to 5743.66 of the Revised Code, including rules providing for the | 122 |
remission of penalties imposed. | 123 |
(D) A manufacturer is not liable for payment of the tax | 124 |
imposed by this section for sales of tobacco products to a retail | 125 |
dealer that has filed a signed statement with the manufacturer in | 126 |
which the retail dealer agrees to pay and be liable for the tax, | 127 |
as long as the manufacturer has provided a copy of the statement | 128 |
to the tax commissioner. | 129 |
Sec. 5743.62. (A) To provide revenue for the general revenue | 130 |
fund of the state, an excise tax is hereby levied on the seller of | 131 |
tobacco products in this state at the rate of | 132 |
per cent of the wholesale price of the tobacco product whenever | 133 |
the tobacco product is delivered to a consumer in this state for | 134 |
the storage, use, or other consumption of such tobacco products. | 135 |
The tax imposed by this section applies only to sellers having | 136 |
nexus in this state, as defined in section 5741.01 of the Revised | 137 |
Code. | 138 |
(B) A seller of tobacco products who has nexus in this state | 139 |
as defined in section 5741.01 of the Revised Code shall register | 140 |
with the tax commissioner and supply any information concerning | 141 |
the seller's contacts with this state as may be required by the | 142 |
tax commissioner. A seller who does not have nexus in this state | 143 |
may voluntarily register with the tax commissioner. A seller who | 144 |
voluntarily registers with the tax commissioner is entitled to the | 145 |
same benefits and is subject to the same duties and requirements | 146 |
as a seller required to be registered with the tax commissioner | 147 |
under this division. | 148 |
(C) Each seller of tobacco products subject to the tax levied | 149 |
by this section, on or before the last day of each month, shall | 150 |
file with the tax commissioner a return for the preceding month | 151 |
showing any information the tax commissioner finds necessary for | 152 |
the proper administration of sections 5743.51 to 5743.66 of the | 153 |
Revised Code, together with remittance of the tax due, payable to | 154 |
the treasurer of state. The return and payment of the tax required | 155 |
by this section shall be filed in such a manner that it is | 156 |
received by the tax commissioner on or before the last day of the | 157 |
month following the reporting period. If the return is filed and | 158 |
the amount of the tax shown on the return to be due is paid on or | 159 |
before the date the return is required to be filed, the seller is | 160 |
entitled to a discount equal to two and five-tenths per cent of | 161 |
the amount shown on the return to be due. | 162 |
(D) The tax commissioner shall immediately forward to the | 163 |
treasurer of state all money received from the tax levied by this | 164 |
section, and the treasurer shall credit the amount to the general | 165 |
revenue fund. | 166 |
(E) Each seller of tobacco products subject to the tax levied | 167 |
by this section shall mark on the invoices of tobacco products | 168 |
sold that the tax levied by that section has been paid and shall | 169 |
indicate the seller's account number as assigned by the tax | 170 |
commissioner. | 171 |
Sec. 5743.63. (A) To provide revenue for the general revenue | 172 |
fund of the state, an excise tax is hereby levied on the storage, | 173 |
use, or other consumption of tobacco products at the rate of | 174 |
175 | |
tobacco product, provided the tax has not been paid by the seller | 176 |
as provided in section 5743.62 of the Revised Code, or by the | 177 |
distributor as provided in section 5743.51 of the Revised Code. | 178 |
(B) Each person subject to the tax levied by this section, on | 179 |
or before the last day of each month, shall file with the tax | 180 |
commissioner a return for the preceding month showing any | 181 |
information the tax commissioner finds necessary for the proper | 182 |
administration of sections 5743.51 to 5743.66 of the Revised Code, | 183 |
together with remittance of the tax due, payable to the treasurer | 184 |
of state. The return and payment of the tax required by this | 185 |
section shall be filed in such a manner that it is received by the | 186 |
tax commissioner on or before the last day of the month following | 187 |
the reporting period. | 188 |
(C) The tax commissioner shall immediately forward to the | 189 |
treasurer of state all money received from the tax levied by this | 190 |
section, and the treasurer shall credit the amount to the general | 191 |
revenue fund. | 192 |
Section 2. That existing sections 5743.01, 5743.51, 5743.62, | 193 |
and 5743.63 of the Revised Code are hereby repealed. | 194 |