exchanges or distributes smokeless tobacco to retailers,
consumers or other wholesalers or distributors in this
Commonwealth. The term includes a smokeless tobacco manufacturer
that has within this Commonwealth any office, sales house or
other place of business.
"Wholesale price." The price for which a smokeless tobacco
manufacturer sells smokeless tobacco to a smokeless tobacco
distributor or wholesaler, exclusive of any discount, rebate or
other reduction.
Section 3. Imposition and rate of tax on smokeless tobacco.
(a) General rule.--Except as set forth in subsection (d), a
tax is imposed on smokeless tobacco sold or held for sale in
this Commonwealth by a smokeless tobacco distributor or
wholesaler to a retailer or consumer. The tax is imposed on the
smokeless tobacco wholesale price, regardless of the actual
price at which the smokeless tobacco is sold and regardless of
whether the smokeless tobacco is sold.
(b) Purchase of stamp.--A smokeless tobacco distributor or
wholesaler that brings smokeless tobacco or causes smokeless
tobacco to be brought into this Commonwealth is liable for the
tax imposed by this section. The tax imposed is to be paid by
the purchase of stamps as provided in this act. The stamp shall
be affixed to or impressed upon each package of smokeless
tobacco.
(c) Tax.--The tax imposed under this section shall be at the
rate of 59.2% of the wholesale price of the smokeless tobacco.
(d) Applicability.--It shall be presumed that all smokeless
tobacco within this Commonwealth is subject to tax. The burden
of proof of exemption under this subsection is on the taxpayer
or remitter claiming exemption.
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