Sec. AA-1. 36 MRSA §4365, as amended by PL 2005, c. 218, §44, is further amended to read:
A tax is imposed on all cigarettes imported into this State or held in this State by any person for sale at the rate of 50 100 mills for each cigarette. Payment of the tax is evidenced by the affixing of stamps to the packages containing the cigarettes.
Sec. AA-2. 36 MRSA §4365-E, as amended by PL 2005, c. 218, §45, is repealed.
Sec. AA-3. 36 MRSA §4365-F is enacted to read:
§4365-F. Application of cigarette tax rate increase effective September 19, 2005
The following provisions apply to cigarettes held for resale on September 19, 2005.
1. Stamped rate. Cigarettes stamped at the rate of 50 mills per cigarette and held for resale after September 18, 2005 are subject to tax at the rate of 100 mills per cigarette.
2. Liability. A person possessing cigarettes for resale is liable for the difference between the tax rate of 100 mills per cigarette and the tax rate of 50 mills per cigarette in effect before September 19, 2005. Stamps indicating payment of the tax imposed by this section must be affixed to all packages of cigarettes held for resale as of September 19, 2005, except that cigarettes held in vending machines as of that date do not require that stamp.
3. Vending machines. Notwithstanding any other provision of this chapter, it is presumed that all cigarette vending machines are filled to capacity on September 19, 2005 and that the tax imposed by this section must be reported on that basis. A credit against this inventory tax must be allowed for cigarettes stamped at the rate of 100 mills per cigarette placed in vending machines before September 19, 2005.
4. Payment. Payment of the tax imposed by this section must be made to the assessor by December 19, 2005, accompanied by forms prescribed by the assessor.
Sec. AA-4. 36 MRSA §4366-A, sub-§2, ¶¶B and C, as amended by PL 2005, c. 218, §46, are further amended to read:
B. For stamps at the face value of 50 mills sold prior to July 1, 2002, 2.16%; and
C. For stamps at the face value of 50 mills sold on or after July 1, 2002, 2.03%.; and
Sec. AA-5. 36 MRSA §4366-A, sub-§2, ¶D is enacted to read:
D. For stamps at the face value of 100 mills, 1.15%.
Sec. AA-6. 36 MRSA §4403, sub-§§1 and 2, as amended by PL 2005, c. 218, §48, are further amended to read:
1. Smokeless tobacco. A tax is imposed on all smokeless tobacco, including chewing tobacco and snuff, at the rate of 62% of the wholesale price 78% of the wholesale price beginning October 1, 2005.
2. Other tobacco. A tax is imposed on cigars, pipe tobacco and other tobacco intended for smoking at the rate of 16% of the wholesale price 20% of the wholesale price beginning October 1, 2005.
Sec. AA-7. Appropriations and allocations. The following appropriations and allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Maine Revenue Services 0002
Initiative: Provides one-time funds for the administrative costs associated with the increase in the cigarette and other tobacco taxes.
GENERAL FUND 2005-06 2006-07
All Other $79,000 $0
__________ __________
GENERAL FUND TOTAL $79,000 $0
Sec. AA-8. Effective date. Those sections of this Part that amend the Maine Revised Statutes, Title 36, sections 4365 and 4366-A; that repeal Title 36, section 4365-E; and that enact Title 36, sections 4365-F and 4366-A, subsection 2, paragraph D take effect September 19, 2005. That section of this Part that amends Title 36, section 4403 takes effect October 1, 2005.
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