Title 14, Taxation

PART I. GENERAL PROVISIONS §245-1 Definitions. As used in this chapter, unless a different meaning is indicated by the context: "Armed services of the United States" for purposes of this chapter shall include the Department of Defense, United States Army, Navy, Air Force, Marines…

§245-10 Appeals. Any person aggrieved by any assessment of the taxes imposed by this chapter may appeal from the assessment in the manner and within the time and in all other respects as provided in the case of income tax appeals by section 235-114. The hearing and disposition of…

§245-11 Chapter 235 and chapter 237 applicable. All of the provisions of chapter 235 and chapter 237 not inconsistent with this chapter and which may appropriately be applied to the taxes, persons, circumstances, and situations involved in this chapter, including (without prejudi…

§245-12 Investigations; contempts; fees. The director of taxation, and any agent of the director duly authorized by the director to conduct any inquiry, investigation, or hearing hereunder, shall have power to administer oaths and take testimony under oath relative to the matter …

§245-13 Administration by director; rules and regulations. The administration of this chapter is vested in the director of taxation, who may prescribe and enforce rules and regulations for the enforcement and administration of this chapter. The rules and regulations shall be pres…

§245-15 Disposition of revenues. All moneys collected pursuant to this chapter shall be paid into the state treasury as state realizations to be kept and accounted for as provided by law; provided that, of the moneys collected under the tax imposed pursuant to: The department sha…

§245-16 Unlawful shipment of cigarettes; penalty; reports; liability for unpaid taxes. (a) A person or entity commits the offense of unlawful shipment of cigarettes if the person or entity is engaged in the business of selling cigarettes and: (b) This section shall not apply to t…

[§245-16.5] Unlawful shipment of tobacco products; penalty; liability for unpaid taxes. (a) A person or entity commits the offense of unlawful shipment of tobacco products if the person or entity: (b) This section shall not apply to the shipment of tobacco products if any of the …

§245-2 License. (a) It shall be unlawful for any person to engage in the business of a wholesaler or dealer in the State without having received first a license therefor issued by the department of taxation under this chapter; provided that this section shall not be construed to …

§245-2.5 Retail tobacco permit. (a) Every retailer engaged in the retail sale of cigarettes and other tobacco products upon which a tax is required to be paid under this chapter shall obtain a retail tobacco permit. (b) It shall be unlawful for any retailer engaged in the retail …

[§245‑2.6] Unlawful tobacco retailing in the first degree. (a) Beginning March 1, 2007, a person or entity required to obtain a retail tobacco permit commits the offense of unlawful tobacco retailing in the first degree if the person or entity knowingly fails to obtain a valid pe…

[§245‑2.7] Unlawful tobacco retailing in the second degree. (a) Beginning March 1, 2007, a person or entity required to obtain a retail tobacco permit commits the offense of unlawful tobacco retailing in the second degree if the person or entity recklessly fails to obtain a valid…

PART II. STAMPING OF CIGARETTES [§245-21] Payment of tax through use of stamps; exemptions. (a) The tax imposed under section 245-3 upon the sale or use of cigarettes shall be paid by licensees through the use of stamps. (b) The department may provide by rule that the tax imposed…

§245-22 Affixation; required prior to distribution; method and manner. (a) Beginning January 1, 2001, a licensee or the authorized agent or designee of a licensee shall affix a stamp to the bottom of each individual package of cigarettes prior to distribution. (b) Beginning April…

[§245-22.5] Prohibition against stamping or sale of cigarettes not listed in the directory pursuant to chapter 486P. (a) Beginning December 1, 2003, it shall be unlawful for an entity to: (b) Any entity that knowingly violates subsection (a) shall be guilty of a class C felony. (…

§245-23 Department to furnish stamps; designs, specifications, and denominations. The department shall furnish stamps for sale to licensees. Stamps shall be of such designs, specifications, and denominations as may be prescribed by the department. [L 2000, c 249, pt of §1, §20(2)…

[§245-24] Sales through financial institutions. The department may enter into agreements to permit the sale of stamps by designated financial institutions located within the State. A list of financial institutions designated to sell stamps shall be made available at the departmen…

[§245-25] Purchase of stamps; when; by licensee or designee. (a) A licensee may apply to the department to purchase stamps beginning December 15, 2000. (b) A licensee may authorize a designee to order purchases of stamps for the licensee at a location where stamps are sold. Autho…

§245-26 Price; payment. (a) Stamps shall be sold at their denominated values, plus a stamp fee of 1.7 per cent of the denominated value of each stamp sold, composed of the aggregate of: provided that the department by rule may modify the stamp fee to reflect actual costs incurred…

§245-3 Taxes. (a) Every wholesaler or dealer, in addition to any other taxes provided by law, shall pay, for the privilege of conducting business and other activities in the State, an excise tax equal to: Where the tax imposed has been paid on cigarettes, little cigars, or tobacc…

[§245-32] Tax refund or credit for cigarettes and tobacco products shipped for sale or use outside the State. (a) The department shall adopt rules to provide a tobacco tax refund or credit to a licensee who has paid a tobacco tax on the distribution of cigarettes or tobacco produ…

§245-33 Unused stamps; cancellation of stamps. The department shall adopt rules for a refund or credit to a licensee in the amount of the denominated values less any discount applied pursuant to section 245-22(e) of any unused stamps. The department may provide by rule for the ca…

[§245-34] Approval of department required for transfer of stamps. Unaffixed stamps shall not be sold, exchanged, or in any manner transferred by a licensee to another person without prior written approval of the department. Any person who violates this section shall be subject to…

[§245-35] Unlicensed possession or use of stamps. A person who is not licensed under this chapter and who knowingly [possesses] or uses a stamp shall be guilty of a class B felony. [L 2000, c 249, pt of §1, §20(2); am L 2002, c 94, §3]

[§245-36] Counterfeiting stamps. A person shall be guilty of a class B felony if the person:

[§245-37] Sale or purchase of packages of cigarettes without stamps; fines and penalties. (a) Beginning April 1, 2001, a person shall be guilty of a class C felony if the person: (b) Beginning April 1, 2001, a person shall be guilty of a misdemeanor if the person: (c) In addition…

[§245-38] Vending unstamped cigarettes. (a) Beginning April 1, 2001, any person who knowingly places for sale in a cigarette vending machine any cigarettes not contained in cigarette packages to which are affixed stamps as required by this part, shall be guilty of a class C felon…

§245-39 Penalty exemptions; presumptions. (a) Sections 245-37 and 245-38 shall not apply to cigarettes that are exempt from taxes as provided by section 245-3(b). (b) No cigarette tax stamp shall be required to be paid upon cigarettes that are sold for personal use at sales outle…

§245-40 Forfeitures; disposition. Any cigarette, package of cigarettes, carton of cigarettes, or container of cigarettes unlawfully possessed, kept, stored, acquired, transported, sold, imported, offered, received, or distributed in violation of this chapter may be seized and con…

§245-41 Enforcement; injunction; disposition of fines. (a) Enforcement of this part shall be under the jurisdiction of the attorney general. The attorney general may seek assistance in the enforcement of this part from other law enforcement agencies. (b) Notwithstanding the exist…

[§245-41.5] Cigarette tax stamp administrative special fund. (a) There is established in the state treasury the cigarette tax stamp administrative special fund, into which shall be deposited the allocated portion of the stamp fee designated to pay for the cost to the State of pro…

[§245-42] Rules. The department shall adopt rules pursuant to chapter 91 to implement this part. [L 2000, c 249, pt of §1, §20(2); am L 2002, c 94, §3]

§245-5 Returns. Every wholesaler or dealer, on or before the twentieth day of each month, shall file with the department a return showing the cigarettes and tobacco products sold, possessed, or used by the wholesaler or dealer during the preceding calendar month and of the taxes …

[PART III.] EXPORT AND FOREIGN CIGARETTES §245-51 Export and foreign cigarettes prohibited. It shall be unlawful for an entity to possess, keep, store, retain, transport, sell, or offer to sell, distribute, acquire, hold, own, import, or cause to be imported into the State any of…

§245-52 Alteration of packaging prohibited. It shall be unlawful for an entity to alter the package of any cigarettes, prior to sale or distribution to remove, conceal, or obscure:

[§245-53] Criminal penalties for illegal sale of export or foreign cigarettes. Any person who knowingly violates section 245-51 or 245-52 shall be guilty of a class C felony, and upon conviction thereof, shall be fined not more than $10,000, and may be imprisoned not less than on…

§245-54 Confiscation and seizure of illegal export or foreign cigarettes. The attorney general and the police departments of each of the counties may seize and confiscate any cigarette, package of cigarettes, or carton of cigarettes that is possessed, kept, stored, retained, held…

§245-55 Forfeiture. Any cigarette, package of cigarettes, or carton of cigarettes unlawfully possessed, kept, stored, received, held, owned, acquired, retained, transported, imported, or caused to be imported, distributed, sold, or offered for sale, in violation of this part, sha…

§245-56 Affixing of cigarette tax stamps to export cigarettes or altered packages prohibited. A person shall be guilty of a class B felony if the person knowingly affixes any cigarette tax stamp required under this chapter to the package of any cigarettes described in section 245…

[§245-57] Documentation of foreign cigarettes. On the first business day of each month, each licensee shall file the following documents with the department and the attorney general for all cigarettes imported into the United States to which the licensee or licensee's agent has a…

[§245-58] Illegal sale of export or foreign cigarettes; revocation or suspension of license; civil penalties. If any licensee violates this part or any rule adopted pursuant to this part, the director may:

[§245-59] Unfair trade practices. Any violation of this part shall constitute an unfair method of competition and unfair and deceptive acts or practices in the conduct of any trade of commerce under section 480-2 and shall be subject to a civil penalty as provided in section 480-…

§245-6 Payment of taxes; penalties. At the time of the filing of the return required under section 245-5 and within the time prescribed, each wholesaler or dealer shall pay to the department the taxes imposed by this chapter, required to be shown by the return, including the unpa…

[§245-60] Deceptive cigarette sales. The importation or reimportation of cigarettes into the United States for sale or distribution under any trade name, trade dress, or trademark that is the same as, or is confusingly similar to, any trade name, trade dress, or trademark used fo…

[§245-61] Enforcement. (a) Enforcement of this part shall be under the concurrent jurisdiction of the attorney general, the prosecuting attorneys or deputy prosecuting attorneys of the various counties, and the police departments of the various counties. (b) In addition to any ot…

§245-62 Applicability. (a) This chapter shall not apply to: (b) As used in this section: "Delivery service" means an entity, including the United States Postal Service (as defined in section 102 of title 39, United States Code), that is engaged in the commercial transport or deli…

[§245-63] Penalties cumulative. The penalties provided in this part are in addition to any other penalties imposed under other law. [L 2000, c 201, pt of §1]

§245-7 Determination of taxes; additional assessments, credits, and refunds. (a) As soon as practicable after each return shall have been filed, the department of taxation shall cause it to be examined and shall compute and determine the amount of the taxes payable thereon. (b) I…

§245-8 Records to be kept. (a) Each wholesaler or dealer shall keep a record of: in a form as the department may prescribe. The records shall be offered for inspection and examination at any time upon demand by the department or the attorney general, and shall be preserved for a …

§245-9 Inspection. (a) The department and the attorney general may examine all records required to be kept or filed under this chapter, and books, papers, and records of any person engaged in the business of wholesaling or dealing cigarettes and tobacco products, to verify the ac…