Posted: | April 9, 2013 03:23 PM |
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From: | Senator Bob Mensch |
To: | All Senate members |
Subject: | Increasing the Presumptive Minimum for Cigarette Sales |
I am introducing legislation amending the Fiscal Code to raise the lowest allowable price a cigarette licensee may charge for cigarettes. This legislation will raise the presumptive minimum cost of doing business for each level of dealers. For a stamping agent, the minimum is currently set at 1.7% but would increase to 2.5% under my legislation. The minimum would increase for a wholesaler from 4% to 4.5% and from 6% to 8% for a retailer. The bill will require records of each contract of sale, but they may be electronic or internet evidence. They must be kept at licensed premises or at corporate headquarters. Property rights in the cigarettes remain with the selling dealer until the buying dealer pays in full. Failure to pay in full in ten days or less subjects the buying dealer to suspension of his license until situation remedied. Thousands of retail licensees will see their cash flow enhanced and stamping agents and cigarette wholesalers will be paid quicker. The Department of Revenue will have a clearer paper trail in the event of an audit and sales tax collections will be enhanced. This legislation is supported by the PA Convenience Store Council, the Pennsylvania Food Merchants and the Pennsylvania Distributors Association. |
Introduced as SB983