Legislation
SECTION 1814
Cigarette and tobacco products tax
Tax (TAX) CHAPTER 60, ARTICLE 37, PART 3
§ 1814. Cigarette and tobacco products tax.--(a) Any person who
willfully attempts in any manner to evade or defeat the taxes imposed by
article twenty of this chapter or payment thereof on (i) ten thousand
cigarettes or more, (ii) twenty-two thousand cigars or more, (iii) four
hundred forty pounds of tobacco or more, or (iv) six thousand six
hundred units of alternative nicotine products or more, or has
previously been convicted two or more times of a violation of paragraph
one of this subdivision shall be guilty of a class E felony.
(b) Any person, other than an agent licensed by the commissioner, who
possesses or transports for the purpose of sale any unstamped or
unlawfully stamped packages of cigarettes subject to tax imposed by
section four hundred seventy-one of this chapter, or who sells or offers
for sale unstamped or unlawfully stamped packages of cigarettes in
violation of the provisions of article twenty of this chapter shall be
guilty of a misdemeanor. Any person who violates the provisions of this
subdivision after having previously been convicted of a violation of
this subdivision within the preceding five years shall be guilty of a
class E felony.
(c) (1) Any person, other than an agent licensed by the commissioner,
who willfully possesses or transports for the purpose of sale ten
thousand or more cigarettes subject to the tax imposed by section four
hundred seventy-one of this chapter in any unstamped or unlawfully
stamped packages or who willfully sells or offers for sale ten thousand
or more cigarettes in any unstamped or unlawfully stamped packages in
violation of article twenty of this chapter shall be guilty of a class E
felony.
(2) Any person, other than an agent licensed by the commissioner, who
willfully possesses or transports for the purpose of sale thirty
thousand or more cigarettes subject to the tax imposed by section four
hundred seventy-one of this chapter in any unstamped or unlawfully
stamped packages or who willfully sells or offers for sale thirty
thousand or more cigarettes in any unstamped or unlawfully stamped
packages in violation of article twenty of this chapter shall be guilty
of a class D felony.
(d) For the purposes of this section, the possession or transportation
within this state by any person, other than an agent, at any one time of
five thousand or more cigarettes in unstamped or unlawfully stamped
packages shall be presumptive evidence that such cigarettes are
possessed or transported for the purpose of sale and are subject to the
tax imposed by section four hundred seventy-one of this chapter. With
respect to such possession or transportation any provisions of article
twenty of this chapter providing for a time period during which a use
tax imposed by such article may be paid on unstamped cigarettes or
unlawfully or improperly stamped cigarettes or during which such
cigarettes may be returned to an agent shall not apply. The possession
within this state of more than four hundred cigarettes in unstamped or
unlawfully stamped packages by any person other than an agent at any one
time shall be presumptive evidence that such cigarettes are subject to
tax as provided by article twenty of this chapter.
(e) Nothing in this section shall apply to common or contract carriers
or warehousemen while engaged in lawfully transporting or storing
unstamped packages of cigarettes as merchandise, or lawfully
transporting or storing tobacco products, nor to any employee of such
carrier or warehouseman acting within the scope of his employment, nor
to public officers or employees in the performance of their official
duties requiring possession or control of unstamped or unlawfully
stamped packages of cigarettes or possession or control of tobacco
products, nor to temporary incidental possession by employees or agents
of persons lawfully entitled to possession, nor to persons whose
possession is for the purpose of aiding police officers in performing
their duties.
(f) Any willful act or omission, other than those described in section
eighteen hundred one of this article or subdivision (a), (b), (c), (d),
(e), (g), (h) or (i) of this section, by any person which constitutes a
violation of any provision of article twenty of this chapter shall
constitute a misdemeanor.
(g) Any person who falsely or fraudulently makes, alters or
counterfeits any stamp prescribed by the tax commission under the
provisions of article twenty of this chapter, or causes or procures to
be falsely or fraudulently made, altered or counterfeited any such
stamp, or knowingly and willfully utters, purchases, passes or tenders
as true any such false, altered or counterfeited stamp, or knowingly and
willfully possesses any cigarettes in packages bearing any such false,
altered or counterfeited stamp, and any person who knowingly and
willfully makes, causes to be made, purchases or receives any device for
forging or counterfeiting any stamp, prescribed by the tax commission
under the provisions of article twenty of this chapter, or who knowingly
and willfully possesses any such device, shall be guilty of a class E
felony. For the purposes of this subdivision, the words "stamp
prescribed by the tax commission" shall include a stamp, impression or
imprint made by a metering machine, the design of which has been
approved by such commission.
(h) (1) Any dealer, other than a distributor appointed by the
commissioner of taxation and finance under article twenty of this
chapter, who shall knowingly transport or have in their custody,
possession or under their control more than ten pounds of tobacco, more
than five hundred cigars, or more than one hundred fifty units of
alternative nicotine products, upon which the taxes imposed by article
twenty of this chapter have not been assumed or paid by a distributor
appointed by the commissioner of taxation and finance under article
twenty of this chapter, or other person treated as a distributor
pursuant to section four hundred seventy-one-d of this chapter, shall be
guilty of a misdemeanor punishable by a fine of not more than five
thousand dollars or by a term of imprisonment not to exceed thirty days.
(2) Any person, other than a dealer or a distributor appointed by the
commissioner under article twenty of this chapter, who shall knowingly
transport or have in their custody, possession or under their control
more than fifteen pounds of tobacco, more than seven hundred fifty
cigars, or more than two hundred twenty-five units of alternative
nicotine products, upon which the taxes imposed by article twenty of
this chapter have not been assumed or paid by a distributor appointed by
the commissioner under article twenty of this chapter, or other person
treated as a distributor pursuant to section four hundred seventy-one-d
of this chapter shall be guilty of a misdemeanor punishable by a fine of
not more than five thousand dollars or by a term of imprisonment not to
exceed thirty days.
(3) Any person, other than a distributor appointed by the commissioner
under article twenty of this chapter, who shall knowingly transport or
have in their custody, possession or under their control twenty-five
hundred or more cigars, fifty or more pounds of tobacco, or seven
hundred fifty units or more of alternative nicotine products, upon which
the taxes imposed by article twenty of this chapter have not been
assumed or paid by a distributor appointed by the commissioner under
article twenty of this chapter, or other person treated as a distributor
pursuant to section four hundred seventy-one-d of this chapter shall be
guilty of a misdemeanor. Provided further, that any person who has twice
been convicted under this subdivision shall be guilty of a class E
felony for any subsequent violation of this section, regardless of the
amount of tobacco products involved in such violation.
(4) For purposes of this subdivision, such person shall knowingly
transport or have in their custody, possession or under their control
tobacco, cigars, or alternative nicotine products, on which such taxes
have not been assumed or paid by a distributor appointed by the
commissioner where such person has knowledge of the requirement of the
tax on tobacco products and, where to their knowledge, such taxes have
not been assumed or paid on such tobacco products by a distributor
appointed by the commissioner of taxation and finance.
(i) Any person who falsely or fraudulently makes, alters or
counterfeits a registration certificate or sticker required under the
provisions of section four hundred eighty-a of this chapter, or causes
or procures to be falsely or fraudulently made, altered or counterfeited
any such registration certificate or sticker, or knowingly and willfully
utters, purchases, passes or tenders as true any such false, altered or
counterfeited registration certificate or sticker, and any person who
knowingly and willfully makes, causes to be made, purchases or receives
any device for forging or counterfeiting any registration certificate or
sticker required under the provisions of such section, or who knowingly
and willfully possesses any such device, shall be guilty of a class B
misdemeanor.
willfully attempts in any manner to evade or defeat the taxes imposed by
article twenty of this chapter or payment thereof on (i) ten thousand
cigarettes or more, (ii) twenty-two thousand cigars or more, (iii) four
hundred forty pounds of tobacco or more, or (iv) six thousand six
hundred units of alternative nicotine products or more, or has
previously been convicted two or more times of a violation of paragraph
one of this subdivision shall be guilty of a class E felony.
(b) Any person, other than an agent licensed by the commissioner, who
possesses or transports for the purpose of sale any unstamped or
unlawfully stamped packages of cigarettes subject to tax imposed by
section four hundred seventy-one of this chapter, or who sells or offers
for sale unstamped or unlawfully stamped packages of cigarettes in
violation of the provisions of article twenty of this chapter shall be
guilty of a misdemeanor. Any person who violates the provisions of this
subdivision after having previously been convicted of a violation of
this subdivision within the preceding five years shall be guilty of a
class E felony.
(c) (1) Any person, other than an agent licensed by the commissioner,
who willfully possesses or transports for the purpose of sale ten
thousand or more cigarettes subject to the tax imposed by section four
hundred seventy-one of this chapter in any unstamped or unlawfully
stamped packages or who willfully sells or offers for sale ten thousand
or more cigarettes in any unstamped or unlawfully stamped packages in
violation of article twenty of this chapter shall be guilty of a class E
felony.
(2) Any person, other than an agent licensed by the commissioner, who
willfully possesses or transports for the purpose of sale thirty
thousand or more cigarettes subject to the tax imposed by section four
hundred seventy-one of this chapter in any unstamped or unlawfully
stamped packages or who willfully sells or offers for sale thirty
thousand or more cigarettes in any unstamped or unlawfully stamped
packages in violation of article twenty of this chapter shall be guilty
of a class D felony.
(d) For the purposes of this section, the possession or transportation
within this state by any person, other than an agent, at any one time of
five thousand or more cigarettes in unstamped or unlawfully stamped
packages shall be presumptive evidence that such cigarettes are
possessed or transported for the purpose of sale and are subject to the
tax imposed by section four hundred seventy-one of this chapter. With
respect to such possession or transportation any provisions of article
twenty of this chapter providing for a time period during which a use
tax imposed by such article may be paid on unstamped cigarettes or
unlawfully or improperly stamped cigarettes or during which such
cigarettes may be returned to an agent shall not apply. The possession
within this state of more than four hundred cigarettes in unstamped or
unlawfully stamped packages by any person other than an agent at any one
time shall be presumptive evidence that such cigarettes are subject to
tax as provided by article twenty of this chapter.
(e) Nothing in this section shall apply to common or contract carriers
or warehousemen while engaged in lawfully transporting or storing
unstamped packages of cigarettes as merchandise, or lawfully
transporting or storing tobacco products, nor to any employee of such
carrier or warehouseman acting within the scope of his employment, nor
to public officers or employees in the performance of their official
duties requiring possession or control of unstamped or unlawfully
stamped packages of cigarettes or possession or control of tobacco
products, nor to temporary incidental possession by employees or agents
of persons lawfully entitled to possession, nor to persons whose
possession is for the purpose of aiding police officers in performing
their duties.
(f) Any willful act or omission, other than those described in section
eighteen hundred one of this article or subdivision (a), (b), (c), (d),
(e), (g), (h) or (i) of this section, by any person which constitutes a
violation of any provision of article twenty of this chapter shall
constitute a misdemeanor.
(g) Any person who falsely or fraudulently makes, alters or
counterfeits any stamp prescribed by the tax commission under the
provisions of article twenty of this chapter, or causes or procures to
be falsely or fraudulently made, altered or counterfeited any such
stamp, or knowingly and willfully utters, purchases, passes or tenders
as true any such false, altered or counterfeited stamp, or knowingly and
willfully possesses any cigarettes in packages bearing any such false,
altered or counterfeited stamp, and any person who knowingly and
willfully makes, causes to be made, purchases or receives any device for
forging or counterfeiting any stamp, prescribed by the tax commission
under the provisions of article twenty of this chapter, or who knowingly
and willfully possesses any such device, shall be guilty of a class E
felony. For the purposes of this subdivision, the words "stamp
prescribed by the tax commission" shall include a stamp, impression or
imprint made by a metering machine, the design of which has been
approved by such commission.
(h) (1) Any dealer, other than a distributor appointed by the
commissioner of taxation and finance under article twenty of this
chapter, who shall knowingly transport or have in their custody,
possession or under their control more than ten pounds of tobacco, more
than five hundred cigars, or more than one hundred fifty units of
alternative nicotine products, upon which the taxes imposed by article
twenty of this chapter have not been assumed or paid by a distributor
appointed by the commissioner of taxation and finance under article
twenty of this chapter, or other person treated as a distributor
pursuant to section four hundred seventy-one-d of this chapter, shall be
guilty of a misdemeanor punishable by a fine of not more than five
thousand dollars or by a term of imprisonment not to exceed thirty days.
(2) Any person, other than a dealer or a distributor appointed by the
commissioner under article twenty of this chapter, who shall knowingly
transport or have in their custody, possession or under their control
more than fifteen pounds of tobacco, more than seven hundred fifty
cigars, or more than two hundred twenty-five units of alternative
nicotine products, upon which the taxes imposed by article twenty of
this chapter have not been assumed or paid by a distributor appointed by
the commissioner under article twenty of this chapter, or other person
treated as a distributor pursuant to section four hundred seventy-one-d
of this chapter shall be guilty of a misdemeanor punishable by a fine of
not more than five thousand dollars or by a term of imprisonment not to
exceed thirty days.
(3) Any person, other than a distributor appointed by the commissioner
under article twenty of this chapter, who shall knowingly transport or
have in their custody, possession or under their control twenty-five
hundred or more cigars, fifty or more pounds of tobacco, or seven
hundred fifty units or more of alternative nicotine products, upon which
the taxes imposed by article twenty of this chapter have not been
assumed or paid by a distributor appointed by the commissioner under
article twenty of this chapter, or other person treated as a distributor
pursuant to section four hundred seventy-one-d of this chapter shall be
guilty of a misdemeanor. Provided further, that any person who has twice
been convicted under this subdivision shall be guilty of a class E
felony for any subsequent violation of this section, regardless of the
amount of tobacco products involved in such violation.
(4) For purposes of this subdivision, such person shall knowingly
transport or have in their custody, possession or under their control
tobacco, cigars, or alternative nicotine products, on which such taxes
have not been assumed or paid by a distributor appointed by the
commissioner where such person has knowledge of the requirement of the
tax on tobacco products and, where to their knowledge, such taxes have
not been assumed or paid on such tobacco products by a distributor
appointed by the commissioner of taxation and finance.
(i) Any person who falsely or fraudulently makes, alters or
counterfeits a registration certificate or sticker required under the
provisions of section four hundred eighty-a of this chapter, or causes
or procures to be falsely or fraudulently made, altered or counterfeited
any such registration certificate or sticker, or knowingly and willfully
utters, purchases, passes or tenders as true any such false, altered or
counterfeited registration certificate or sticker, and any person who
knowingly and willfully makes, causes to be made, purchases or receives
any device for forging or counterfeiting any registration certificate or
sticker required under the provisions of such section, or who knowingly
and willfully possesses any such device, shall be guilty of a class B
misdemeanor.