§ 7771. Rate of tax
(a) A tax is imposed on all cigarettes, little cigars, and roll-your-own tobacco held
in this State by any person for sale, unless such products shall be:
(1) in the possession of a licensed wholesale dealer;
(2) in the course of transit and consigned to a licensed wholesale dealer or retail dealer;
or
(3) in the possession of a retail dealer who has held the products for 24 hours or less.
(b) Payment of the tax on cigarettes under this section shall be evidenced by the affixing
of stamps to the packages containing the cigarettes. Where practicable, the Commissioner
may also require that stamps be affixed to packages containing little cigars or roll-your-own
tobacco. Any cigarette, little cigar, or roll-your-own tobacco on which the tax imposed
by this section has been paid, such payment being evidenced by the affixing of such
stamp or such evidence as the Commissioner may require, shall not be subject to a
further tax under this chapter. Nothing contained in this chapter shall be construed
to impose a tax on any transaction the taxation of which by this State is prohibited
by the constitution of the United States. The amount of taxes advanced and paid by
a licensed wholesale dealer as herein provided shall be added to and collected as
part of the retail sale price on the cigarettes, little cigars, or roll-your-own tobacco.
(c) A tax is also imposed on all cigarettes, little cigars, and roll-your-own tobacco
possessed in this State by any person for any purpose other than sale as follows:
(1) This tax shall not apply to:
(A) Products bearing a stamp affixed pursuant to this chapter.
(B) Products bearing a tax stamp affixed pursuant to the laws of another jurisdiction
with a tax rate equal to or greater than the rate set forth in this subsection (c).
(C) Products purchased outside the State by an individual in quantities of 400 or fewer
cigarettes, little cigars, and 0.0325 ounce units of roll-your-own tobacco, and brought
into the State for that individual’s own use or consumption. Products that are ordered
from a source outside the State and delivered into this State are not “purchased outside
the State” within the meaning of this subsection (c).
(2) There is allowed a credit against the tax under this subsection for cigarette, little
cigars, or roll-your-own tobacco tax paid to another jurisdiction and evidenced by
tax stamps affixed to the subject products pursuant to the laws of that jurisdiction.
(3) A person taxable under this section shall, within 30 days of first possessing the
products in this State, file a return with the Commissioner showing the quantity of
products brought into the State. The return must be made in the form and manner prescribed
by the Commissioner and be accompanied by remittance of the tax due.
(d) The tax imposed under this section shall be at the rate of 154 mills per cigarette
or little cigar and for each 0.0325 ounces of roll-your-own tobacco. The interest
and penalty provisions of section 3202 of this title shall apply to liabilities under this section. (Amended 1959, No. 243, § 1; 1963, No. 226, § 1, eff. July 3, 1963; 1965, No. 41, § 1, eff. April 28, 1965; 1965, No. 131, § 1; 1969, No. 144, § 12, eff. June 1, 1969; 1981, No. 31, § 8; 1983, No. 2 (Sp. Sess.), § 3, eff. July 28, 1983; 1991, No. 32, § 23-25; 1995, No. 14, § 6, eff. April 12, 1995; 1995, No. 29, § 14, eff. April 14, 1995; 2001, No. 140 (Adj. Sess.), §§ 24, 26, eff. June 21, 2002; 2005, No. 191 (Adj. Sess.), § 37; 2005, No. 207 (Adj. Sess.), § 3, eff. May 31, 2006; 2009, No. 1 (Sp. Sess.), § H.37; 2009, No. 160 (Adj. Sess.), § 35; 2011, No. 45, § 27; 2013, No. 174 (Adj. Sess.), § 38; 2015, No. 54, § 49; 2015, No. 57, § 74, eff. June 11, 2015; 2021, No. 105 (Adj. Sess.), § 565, eff. July 1, 2022; 2023, No. 6, § 387, eff. July 1, 2023.)