§ 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 subsection (c) of this section.

(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.

(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.)