H2150B3338A09822 MSP:DM 04/03/12 #90 A09822 | ||||||||
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AMENDMENTS TO HOUSE BILL NO. 2150 | ||||||||
Sponsor: REPRESENTATIVE BRIGGS | ||||||||
Printer's No. 3338 | ||||||||
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1 | Amend Bill, page 1, line 11, by striking out "and," | |||||||
2 | Amend Bill, page 1, line 12, by inserting after "tax" | |||||||
3 | ||||||||
4 | Amend Bill, page 13, by inserting between lines 24 and 25 | |||||||
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6 | ||||||||
7 | ||||||||
8 | ||||||||
9 | ||||||||
10 | shall have the meanings given to them in this section unless the | |||||||
11 | ||||||||
12 | ||||||||
13 | ||||||||
14 | "Cigarette." Includes any roll for smoking made wholly or in | |||||||
15 | part of tobacco, irrespective of size or shape, and whether or | |||||||
16 | ||||||||
17 | other ingredient, the wrapper or cover of which is made of paper | |||||||
18 | or any other substance or material, excepting tobacco, and shall | |||||||
19 | ||||||||
20 | ||||||||
21 | "Consumer." An individual who purchases tobacco products for | |||||||
22 | ||||||||
23 | ||||||||
24 | ||||||||
25 | ||||||||
26 | shall preclude any person from being a wholesaler or retailer, | |||||||
27 | provided the person meets the requirements for a license in each | |||||||
28 | ||||||||
29 | "Department." The Department of Revenue of the Commonwealth. | |||||||
30 | ||||||||
31 | than four pounds per thousand, where the wrapper or cover is | |||||||
32 | ||||||||
33 | ||||||||
34 | ||||||||
35 | ||||||||
36 | ||||||||
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1 | syndicate, trust or trustee, receiver, fiduciary, partnership, | |||||||
2 | conservator, any political subdivision of the Commonwealth or | |||||||
3 | any other state. Whenever used in any of the provisions of this | |||||||
4 | article prescribing or imposing penalties, the word "person" as | |||||||
5 | applied to a partnership, unincorporated association or other | |||||||
6 | joint venture, means the partners or members thereof, and as | |||||||
7 | applied to a corporation, means all the officers and directors | |||||||
8 | ||||||||
9 | ||||||||
10 | delivered, or promised to be paid or delivered, whether it be | |||||||
11 | ||||||||
12 | purchase, without any deduction on account of the cost or value | |||||||
13 | of the property sold, cost or value of transportation, cost or | |||||||
14 | value of labor or service, interest or discount paid or allowed | |||||||
15 | after the sale is consummated, any other taxes imposed by the | |||||||
16 | ||||||||
17 | ||||||||
18 | products from any source for the purpose of sale to a consumer, | |||||||
19 | or who owns, leases or otherwise operates one or more vending | |||||||
20 | ||||||||
21 | ultimate consumer. The term includes a vending machine operator | |||||||
22 | ||||||||
23 | products and is not licensed as a tobacco products wholesaler | |||||||
24 | ||||||||
25 | ||||||||
26 | appearance, type, packaging or labeling, is suitable for use and | |||||||
27 | ||||||||
28 | tobacco for making cigarettes. For purposes of reporting sales | |||||||
29 | of this product under the act of June 22, 2000 (P.L.394, No.54), | |||||||
30 | known as the Tobacco Settlement Agreement Act, 0.09 ounces of | |||||||
31 | ||||||||
32 | ||||||||
33 | ||||||||
34 | gift; or any offer to sell or transfer the ownership, custody or | |||||||
35 | ||||||||
36 | ||||||||
37 | ||||||||
38 | granulated, plug cut, crimp cut, ready rubbed and other smoking | |||||||
39 | tobacco, roll-your-own tobacco, snuff, dry snuff, snuff flour, | |||||||
40 | cavendish, plug and twist tobacco, fine-cut and other chewing | |||||||
41 | ||||||||
42 | ||||||||
43 | ||||||||
44 | ingesting or for smoking in a pipe or otherwise, or both for | |||||||
45 | ||||||||
46 | ||||||||
47 | ||||||||
48 | imposed by this article was not paid and that is not a person | |||||||
49 | otherwise required to be licensed under the provisions of this | |||||||
50 | article. The term includes, but is not limited to, consumers who | |||||||
51 | ||||||||
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1 | catalogs for personal possession or use in this Commonwealth. | |||||||
2 | ||||||||
3 | ||||||||
4 | leased or otherwise operated by the person at locations from | |||||||
5 | which tobacco products are sold to the consumer. The owner or | |||||||
6 | tenant of the premises upon which a vending machine is placed | |||||||
7 | ||||||||
8 | owner's or tenant's sole remuneration therefrom is a flat rental | |||||||
9 | ||||||||
10 | ||||||||
11 | actually owns the vending machine or leases the vending machine | |||||||
12 | ||||||||
13 | ||||||||
14 | ||||||||
15 | ||||||||
16 | ||||||||
17 | distributes tobacco products to retailers or other wholesalers | |||||||
18 | ||||||||
19 | manufacturer or from another wholesaler who has not paid the tax | |||||||
20 | ||||||||
21 | ||||||||
22 | (a) Imposition.--A tobacco products tax is hereby imposed on | |||||||
23 | the dealer, manufacturer or any person at the time the tobacco | |||||||
24 | product is first sold to a retailer in this Commonwealth at the | |||||||
25 | rate of 30% on the purchase price charged to the retailer for | |||||||
26 | the purchase of any tobacco product. The tax shall be collected | |||||||
27 | from the retailer by whomever sells the tobacco product to the | |||||||
28 | retailer and remitted to the department. Any person required to | |||||||
29 | collect this tax shall separately state the amount of tax on an | |||||||
30 | ||||||||
31 | ||||||||
32 | from the retailer, the tax is imposed on the retailer at the | |||||||
33 | time of purchase at the same rate as in subsection (a) based on | |||||||
34 | ||||||||
35 | ||||||||
36 | ||||||||
37 | unclassified importer at the time of purchase at the same rate | |||||||
38 | ||||||||
39 | ||||||||
40 | ||||||||
41 | (d) Exceptions.--The tax shall not be imposed on any tobacco | |||||||
42 | ||||||||
43 | ||||||||
44 | ||||||||
45 | ||||||||
46 | ||||||||
47 | provisions of Article II shall apply to the returns, payment, | |||||||
48 | ||||||||
49 | ||||||||
50 | ||||||||
51 | (a) Payment.--Any retailer that, as of the effective date of | |||||||
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1 | ||||||||
2 | ||||||||
3 | products in accordance with the rates specified in section 1202- | |||||||
4 | A. The tax shall be paid and reported on a form prescribed by | |||||||
5 | ||||||||
6 | ||||||||
7 | (b) Administrative penalty; license.--If a retailer fails to | |||||||
8 | file the report required by subsection (a) or fails to pay the | |||||||
9 | tax imposed by subsection (a), the department may, in addition | |||||||
10 | to the interest and penalties provided in section 1215-A, do any | |||||||
11 | ||||||||
12 | ||||||||
13 | of tax evaded or not paid. The penalty shall be added to the | |||||||
14 | tax evaded or not paid and assessed and collected at the same | |||||||
15 | ||||||||
16 | ||||||||
17 | ||||||||
18 | ||||||||
19 | under subsection (b), a person that willfully omits, neglects or | |||||||
20 | ||||||||
21 | commits a misdemeanor and shall, if convicted, be sentenced to | |||||||
22 | ||||||||
23 | serve a term of imprisonment not to exceed 30 days, or both. | |||||||
24 | ||||||||
25 | ||||||||
26 | manufacturers shall file monthly reports on a form prescribed by | |||||||
27 | the department by the 20th day of the month following the sale | |||||||
28 | or purchase of tobacco products from any other source on which | |||||||
29 | the tax levied by this article has not been paid. The tax is due | |||||||
30 | at the time the report is due. The department may required the | |||||||
31 | filing of reports and payment of tax on a less frequent basis at | |||||||
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33 | ||||||||
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36 | ||||||||
37 | ||||||||
38 | ||||||||
39 | Section 1207-A. Sales or possession of tobacco product when tax | |||||||
40 | ||||||||
41 | ||||||||
42 | any tobacco product for which the proper tax has not been paid | |||||||
43 | ||||||||
44 | sentenced to pay costs of prosecution and a fine of not less | |||||||
45 | than $100 not more than $1,000 or to imprisonment for not more | |||||||
46 | ||||||||
47 | tobacco products purchased from a wholesaler properly licensed | |||||||
48 | under this article shall be presumed to have the proper taxes | |||||||
49 | ||||||||
50 | ||||||||
51 | ||||||||
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1 | intent to evade the payment of the tax imposed by this article | |||||||
2 | sells or possesses any tobacco product for which the proper tax | |||||||
3 | has not been paid commits a felony and shall, upon conviction, | |||||||
4 | be sentenced to pay costs of prosecution and a fine of not more | |||||||
5 | than $15,000 or to imprisonment for not more than five years, or | |||||||
6 | ||||||||
7 | ||||||||
8 | ||||||||
9 | determinations and assessments of the tax, including interest, | |||||||
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14 | ||||||||
15 | assessed and collected at any time as to taxable transactions | |||||||
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17 | ||||||||
18 | ||||||||
19 | return with intent to evade the tax imposed by this article, the | |||||||
20 | amount of tax due may be assessed and collected at any time. | |||||||
21 | ||||||||
22 | ||||||||
23 | ||||||||
24 | assessment of a tax, a taxpayer has consented, in writing, that | |||||||
25 | the period be extended, the amount of tax due may be assessed at | |||||||
26 | any time within the extended period. The period so extended may | |||||||
27 | be extended further by subsequent consents, in writing, made | |||||||
28 | ||||||||
29 | Section 1214-A. Failure to furnish information, returning false | |||||||
30 | ||||||||
31 | ||||||||
32 | ||||||||
33 | makes any false or fraudulent record, return, report, inventory | |||||||
34 | or statement required by this article commits a misdemeanor and | |||||||
35 | shall, upon conviction, be sentenced to pay costs of prosecution | |||||||
36 | and a fine of $500 and to imprisonment for not more than one | |||||||
37 | ||||||||
38 | ||||||||
39 | the books and records, the stock of tobacco products and the | |||||||
40 | premises and equipment of any taxpayer in order to verify the | |||||||
41 | accuracy of the payment of the tax imposed by this article. The | |||||||
42 | person subject to an examination shall give to the department or | |||||||
43 | its duly authorized representative, the means, facilities and | |||||||
44 | opportunity for the examination. Willful refusal to cooperate | |||||||
45 | ||||||||
46 | department shall be sufficient grounds for the suspension or | |||||||
47 | revocation of a taxpayer's license. In addition, a person who | |||||||
48 | willfully refuses to cooperate with or permit an examination to | |||||||
49 | the satisfaction of the department commits a misdemeanor and | |||||||
50 | shall, upon conviction, be sentenced to pay costs of prosecution | |||||||
51 | ||||||||
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1 | ||||||||
2 | ||||||||
3 | manufacturer shall keep and maintain for a period of four years | |||||||
4 | records in the form prescribed by the department. The records | |||||||
5 | shall be maintained at the location for which the license is | |||||||
6 | ||||||||
7 | (d) Reports.--A dealer or manufacturer shall file reports at | |||||||
8 | ||||||||
9 | ||||||||
10 | wholesaler located or doing business in this Commonwealth who | |||||||
11 | sells tobacco products to a wholesale license holder in this | |||||||
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21 | ||||||||
22 | wholesaler shall file with the department, on or before the 20th | |||||||
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29 | ||||||||
30 | ||||||||
31 | ||||||||
32 | Section 1219-A. Records of shipments and receipts of tobacco | |||||||
33 | ||||||||
34 | ||||||||
35 | any common or contract carrier who transports tobacco products | |||||||
36 | to any point or points within this Commonwealth, and from any | |||||||
37 | bonded warehouseman or bailee who has in the possession of the | |||||||
38 | warehouseman or bailee any tobacco products. The reports shall | |||||||
39 | contain the information concerning shipments of tobacco products | |||||||
40 | ||||||||
41 | ||||||||
42 | carriers, bailees and warehousemen shall permit the examination | |||||||
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44 | ||||||||
45 | ||||||||
46 | ||||||||
47 | ||||||||
48 | shall sell, transfer or deliver any tobacco products in this | |||||||
49 | Commonwealth without first obtaining the proper license provided | |||||||
50 | ||||||||
51 | ||||||||
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1 | manufacturer's license shall complete and file an application | |||||||
2 | with the department. The application shall be in the form and | |||||||
3 | contain information prescribed by the department and shall set | |||||||
4 | forth truthfully and accurately the information desired by the | |||||||
5 | department. If the application is approved, the department shall | |||||||
6 | license the dealer or manufacturer for a period of one year and | |||||||
7 | ||||||||
8 | ||||||||
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10 | ||||||||
11 | ||||||||
12 | ||||||||
13 | process agent. If a manufacturer designates no process agent, | |||||||
14 | the manufacturer shall be deemed to have made the Secretary of | |||||||
15 | State its agent for the service of process in this Commonwealth. | |||||||
16 | ||||||||
17 | ||||||||
18 | renewal of that license shall meet the following requirements: | |||||||
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30 | information that the applicant has complied with this article | |||||||
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32 | ||||||||
33 | ||||||||
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35 | ||||||||
36 | ||||||||
37 | tax reports and paid any State taxes not subject to a timely | |||||||
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39 | ||||||||
40 | ||||||||
41 | valid for one specific location only. Wholesalers with more than | |||||||
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4 | tax reports and paid any State taxes not subject to a timely | |||||||
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6 | ||||||||
7 | Section 1224-A. License for tobacco products vending machines. | |||||||
8 | ||||||||
9 | retail license which shall be conspicuously and visibly placed | |||||||
10 | on the machine. There shall be conspicuously and visibly placed | |||||||
11 | on every tobacco products vending machine the name and address | |||||||
12 | ||||||||
13 | ||||||||
14 | ||||||||
15 | (a) At the time of making any application or license renewal | |||||||
16 | ||||||||
17 | ||||||||
18 | ||||||||
19 | ||||||||
20 | dealer's license shall pay to the department a license fee of | |||||||
21 | ||||||||
22 | ||||||||
23 | ||||||||
24 | ||||||||
25 | dealer's license shall pay to the department a license fee of | |||||||
26 | ||||||||
27 | ||||||||
28 | ||||||||
29 | and payment of the fees, the department shall issue the proper | |||||||
30 | license which must be conspicuously displayed at the location | |||||||
31 | ||||||||
32 | ||||||||
33 | The department may at its discretion require that any or all | |||||||
34 | returns, reports or registrations that are required to be filed | |||||||
35 | ||||||||
36 | electronically file any return, report, registration or other | |||||||
37 | information the department may direct to be filed electronically | |||||||
38 | shall subject the taxpayer to a penalty of 5% of the tax due on | |||||||
39 | the return, up to a maximum of $1,000, but not less than $10. | |||||||
40 | This penalty shall be assessed at any time and collected in the | |||||||
41 | ||||||||
42 | ||||||||
43 | failure to furnish information or file a return. The criminal | |||||||
44 | penalty for failure to file a return electronically shall be the | |||||||
45 | same as the criminal penalty for failure to furnish information | |||||||
46 | ||||||||
47 | ||||||||
48 | ||||||||
49 | June next succeeding the date upon which it was issued unless | |||||||
50 | ||||||||
51 | ||||||||
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1 | ||||||||
2 | sooner if the license is suspended, surrendered or revoked, it | |||||||
3 | shall be illegal for any dealer to engage directly or indirectly | |||||||
4 | in the business heretofore conducted by the dealer for which the | |||||||
5 | license was issued. Any licensee who shall, after the expiration | |||||||
6 | ||||||||
7 | ||||||||
8 | ||||||||
9 | engaged in the business of dealing with tobacco products for | |||||||
10 | profit shall be in violation of this article and be subject to | |||||||
11 | ||||||||
12 | ||||||||
13 | ||||||||
14 | ||||||||
15 | rules and regulations for the enforcement of this article. The | |||||||
16 | ||||||||
17 | ||||||||
18 | ||||||||
19 | jointly administer this article with other provisions of this | |||||||
20 | act, including joint reporting of information, forms, returns, | |||||||
21 | ||||||||
22 | ||||||||
23 | ||||||||
24 | (a) Penalty.--Any person who shall, without being the holder | |||||||
25 | of a proper unexpired dealer's license, engage in purchasing, | |||||||
26 | ||||||||
27 | ||||||||
28 | products for profit commits a summary offense and shall, upon | |||||||
29 | conviction, be sentenced to pay costs of prosecution and a fine | |||||||
30 | of not less than $250 nor more than $1,000, or to imprisonment | |||||||
31 | for not more than 30 days, or both, at the discretion of the | |||||||
32 | ||||||||
33 | ||||||||
34 | ||||||||
35 | ||||||||
36 | engaging in the business of dealing with tobacco products for | |||||||
37 | ||||||||
38 | ||||||||
39 | (a) Suspension.--The license of any person who violates this | |||||||
40 | article may be suspended after due notice and opportunity for a | |||||||
41 | hearing for a period of not less than five days or more than 30 | |||||||
42 | days for a first violation and shall be revoked or suspended for | |||||||
43 | ||||||||
44 | ||||||||
45 | ||||||||
46 | fined not less than $2,500 nor more than $5,000. For subsequent | |||||||
47 | ||||||||
48 | ||||||||
49 | ||||||||
50 | ||||||||
51 | ||||||||
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4 | ||||||||
5 | ||||||||
6 | ||||||||
7 | ||||||||
8 | ||||||||
9 | ||||||||
10 | unstamped cigarettes shall apply to tobacco products worth at | |||||||
11 | ||||||||
12 | ||||||||
13 | unstamped cigarettes shall apply to tobacco products worth at | |||||||
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15 | ||||||||
16 | ||||||||
17 | ||||||||
18 | ||||||||
19 | ||||||||
20 | regulations promulgated under this article shall prohibit the | |||||||
21 | bringing into this Commonwealth by a manufacturer samples of | |||||||
22 | tobacco products to be delivered and distributed only through | |||||||
23 | ||||||||
24 | ||||||||
25 | provided all such packs bear the legend "all applicable State | |||||||
26 | taxes have been paid." Under no circumstances shall any untaxed | |||||||
27 | ||||||||
28 | ||||||||
29 | ||||||||
30 | transfer or deliver to any person, any tobacco product where the | |||||||
31 | ||||||||
32 | other than the original manufacturer. Modification or alteration | |||||||
33 | shall include the placement of a sticker, writing or mark to | |||||||
34 | cover information on the packages. For purposes of this section, | |||||||
35 | a tobacco product package shall not be construed to have been | |||||||
36 | modified or altered by a person other than the manufacturer if | |||||||
37 | ||||||||
38 | ||||||||
39 | ||||||||
40 | ||||||||
41 | The department is authorized to exchange information with any | |||||||
42 | other Federal, State or local enforcement agency for purposes of | |||||||
43 | ||||||||
44 | Amend Bill, page 13, line 25, by striking out "4" and | |||||||
45 | ||||||||
46 | ||||||||
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