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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY FRANKEL, JOSEPHS, MANDERINO, McGEEHAN, McILVAINE SMITH, MELIO, MUNDY, SIPTROTH AND K. SMITH, JANUARY 26, 2009 |
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| REFERRED TO COMMITTEE ON FINANCE, JANUARY 26, 2009 |
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| AN ACT |
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1 | Providing for cigarette tax definitions and imposition. |
2 | The General Assembly of the Commonwealth of Pennsylvania |
3 | hereby enacts as follows: |
4 | Section 1. Short title. |
5 | This act shall be known and may be cited as the Cigarette and |
6 | Other Tobacco Products Tax Act. |
7 | Section 2. Definitions. |
8 | The following words and phrases when used in this act shall |
9 | have the meanings given to them in this section unless the |
10 | context clearly indicates otherwise: |
11 | "Cigarette." Any roll for smoking made wholly or in part of |
12 | tobacco, the wrapper or cover of which is made of any substance |
13 | or material other than tobacco regardless of the size or shape |
14 | of the roll and regardless of whether or not the tobacco is |
15 | flavored, adulterated or mixed with any other ingredient. The |
16 | term cigarette shall not include cigars, little cigars or |
17 | cigarillos. |
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1 | "Smokeless tobacco." A product containing finely cut, |
2 | ground, powdered, blended or leaf tobacco made primarily for |
3 | individual consumption which is intended to be placed in the |
4 | oral or nasal cavity and not intended to be smoked. The term |
5 | includes chewing tobacco, dipping tobacco and snuff. |
6 | "Tobacco product." A product containing tobacco for |
7 | consumption. The term includes a cigar, a little cigar, a |
8 | cigarillo, pipe tobacco, smokeless tobacco, roll-your-own, |
9 | smoking tobacco, bidis or beedies and kretek. The term does not |
10 | include a cigarette. |
11 | "Tobacco product distributor or wholesaler." A person |
12 | engaged in the business of selling tobacco products that sells, |
13 | exchanges or distributes tobacco products to retailers, |
14 | consumers or other wholesalers or distributors in this |
15 | Commonwealth. The term includes a tobacco products manufacturer |
16 | that has within this Commonwealth any office, sales house or |
17 | other place of business. |
18 | "Wholesale price." The price for which a tobacco |
19 | manufacturer sells a tobacco product to a tobacco product |
20 | distributor or wholesaler, exclusive of any discount, rebate or |
21 | other reduction. |
22 | Section 3. Incidence and rate of tax on tobacco products. |
23 | (a) General rule.--Except as set forth in subsection (d), a |
24 | tax is imposed on a tobacco product sold or held for sale in |
25 | this Commonwealth by a tobacco products distributor or |
26 | wholesaler to a retailer or consumer. The tax is imposed on the |
27 | tobacco product wholesale price, regardless of the actual price |
28 | at which the tobacco product is sold and regardless of whether |
29 | the tobacco product is sold. |
30 | (b) Purchase of stamp.--A tobacco products distributor or |
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1 | wholesaler that brings tobacco products or causes tobacco |
2 | products to be brought into this Commonwealth is liable for the |
3 | tax imposed by this section. The tax imposed is to be paid by |
4 | the purchase of stamps as provided in this act. The stamp shall |
5 | be affixed to or impressed upon each package of tobacco product. |
6 | (c) Tax.--The tax imposed by this section shall be at the |
7 | rate of 59.2% of the wholesale price of the tobacco product. |
8 | (d) Applicability.--The tax under this section does not |
9 | apply to a tobacco product which the Commonwealth is prohibited |
10 | from taxing under the laws of the United States. It shall be |
11 | presumed that all tobacco products within this Commonwealth are |
12 | subject to tax. The burden of proof of exemption under this |
13 | subsection is on the taxpayer or remitter claiming exemption. |
14 | Section 4. Effective date. |
15 | This act shall take effect immediately. |
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