42-3458. Discount purchases of tax stamps; refund, redemption and rebate amounts

A. The official stamps to be affixed to packages of cigarettes shall be obtainable from the department by each licensed distributor by purchase or as may be acquired pursuant to department procedures:

1. On or before September 30, 2014, at the following discount rates:

(a) Ninety-six percent of the face value for the first thirty-six thousand dollars worth of stamps purchased by the distributor in any month.

(b) Ninety-seven percent of the face value for the second thirty-six thousand dollars worth of stamps purchased by the distributor in any month.

(c) Ninety-eight percent of the face value on all stamps in excess of seventy-two thousand dollars purchased by the distributor in any month, except that if a distributor purchases more than one hundred sixty-five thousand dollars worth of stamps in one month, the department shall offset against the discount under this subdivision, or the distributor shall refund to the department, the difference between the face value and the discounted value of the first seventy-two thousand dollars worth of stamps under subdivisions (a) and (b) of this paragraph.

2. After September 30, 2014 through September 30, 2016, at the rate of ninety-six percent of the face value of the stamps.

3. After September 30, 2016, at the discount rate of 96.48 percent of the face value of all categories of stamps, except that:

(a) For those categories of stamps with a face value of zero, 3.52 cents per stamp shall be remitted to the acquiring distributor as an administrative allowance subject to the reporting of the affixation of such stamps pursuant to section 42-3462.

(b) For those categories of stamps for which the tax is not precollected pursuant to article 7 of this chapter, 3.52 cents per stamp shall be remitted to the acquiring distributor as an administrative allowance subject to the reporting of the affixation of such stamps pursuant to section 42-3462.

B. Any refund of tax stamps requested by a licensed distributor pursuant to section 42-3008 or redemption of unused or spoiled tax stamps pursuant to section 42-3460 shall be issued in an amount of:

1. The total face value of the stamps minus four percent if subsection A, paragraph 2 of this section applies to the stamps.

2. The total face value of the stamps minus 3.52 percent if subsection A, paragraph 3 of this section applies to the stamps.

C. Any rebate of tax stamps requested by a licensed distributor for which the tax is precollected pursuant to article 7 of this chapter shall be at the full face value of the stamps.