Posted: | January 27, 2015 09:26 AM |
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From: | Senator Bob Mensch |
To: | All Senate members |
Subject: | Adjustment of the Retailer Presumptive Minimum Cost of Cigarettes |
In the near future, I will introduce legislation to adjust the retailer presumptive minimum cost of doing business in cigarettes formula established more than 60 years ago from 6% to 7% for retailers, who have had no cost adjustment in the history of the law. It does not affect cigars, snuff, chew or other tobacco products, and this is not a tax. 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. Failure to pay in full in fourteen days or less subjects the buying dealer to violation of the act. The benefits of this legislation are that thousands of retail licensees will see their cash flow enhanced. The Department of Revenue will have a clearer paper trail in the event of an audit and sales tax collections will be enhanced. This will further assist in collection of the Philadelphia school tax. This legislation is supported by the Pennsylvania Food Merchants and the Pennsylvania Distributors Association. I hope you will join me in this effort by co-sponsoring this legislation. |
Introduced as SB691