Tax Type
Cigarette Tax
Description
Tobacco Tax: Discount on Cigarette Tax Stamps, Emergency Regulation
Topic
Collection of Tax
Rate of Tax
Date Issued
04-15-1984
EMERGENCY REGULATION
SUBJECT: Tobacco Tax: Discount on Cigarette Tax Stamps
EFFECTIVE DATE: April 15, 1984
EXPIRATION DATE: Upon adoption of permanent regulations.
REFERENCES: §s 58-757.8, 58-757.10, Code of Virginia.
AUTHORITY: §s 58-48.6, 9-6.14:6, Code of Virginia.
SCOPE:
Applicable to qualified wholesale dealers selling cigarettes in packs of twenty-five cigarettes each.
PURPOSE:
This emergency regulation sets forth the discount allowable to qualified wholesale dealers on the purchase of tax stamps applicable to packs of twenty-five cigarettes each.
BACKGROUND:
§ 58-757.10, Code of Virginia, defines a wholesale dealer qualified for the allowance of discount on cigarette tax stamps purchased. § 58-757.8 provides for discount of two and one-half cents per carton. A carton is defined in § 58-757.8 for purposes of discount to mean ten packs of cigarettes, each containing twenty cigarettes. However, the department has been requested to furnish stamps for packs containing twenty-five cigarettes in nine pack cartons.
The Commissioner has determined that certain terms in § 58-757.8 clearly require a different meaning when applied to cartons of nine packs, each pack containing twenty-five cigarettes.
Because it is the expressed desire to market such cartons in this Commonwealth in the immediate future and in order to provide for the equitable allowance of discount related to such cartons, the Commissioner has determined that an emergency exists. Accordingly, this emergency regulation is issued pursuant to the emergency procedures prescribed by the Administrative Process Act and shall be effective until a permanent regulation on this subject is adopted.
REGULATION:
For purposes of allowing the discount provided in § 58-757.8 on the purchase of tax stamps applicable to packs of twenty-five cigarettes each, the term "carton" shall mean nine packs of cigarettes, each containing twenty-five cigarettes.
When wholesalers who have qualified as such with the Department of Taxation, as provided in § 58-757.10, purchase tax stamps for use on packs of twenty-five cigarettes, the Department will allow a discount of $0.0225 per carton which is nine-tenths of the discount allowed on cartons containing ten packs and is equivalent to eight percent of the tax at the current tax rate.
Pursuant to provisions of the Administrative Process Act, the Department of Taxation will receive, consider, and respond to petitions of interested parties at any time for the reconsideration or revision of this emergency regulation.
Approved for issuance under the emergency procedures prescribed by § 9-6.14:6(iii) of the Code of Virginia (1950), as amended, of the Administrative Process Act this 15 day of April, 1984.
Charles S. Robb
Governor
W. H. Forst
State Tax Commissioner
Adopted this 15 day of April, 1984.
Rulings of the Tax Commissioner