THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY ARGALL, JANUARY 12, 2011

REFERRED TO FINANCE, JANUARY 12, 2011  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," in cigarette tax, further providing for

definitions.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definition of "wholesaler" in section 1201 of

the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform

Code of 1971, added October 9, 2009 (P.L.451, No.48), is amended

to read:

Section 1201.  Definitions.--As used in this article:

* * *

"Wholesaler."  Any of the following:

(1)  Any person that meets all of the following:

(i)  In the usual course of business, purchases cigarettes

from a cigarette stamping agent or other wholesaler and

receives, stores, sells and distributes within this Commonwealth

at least seventy-five per cent of the cigarettes purchased by

him or her to retail dealers or wholesale dealers or any

combination who buys the cigarettes from him or her for the

purpose of resale to the ultimate consumer.

(ii)  Maintains an established place of business for the

receiving, storage and distribution of cigarettes.

(2)  Any person that meets all of the following:

(i)  Is engaged in the business of distributing cigarettes

through vending machines to the ultimate consumer by means of

placing the cigarette vending machines, owned or leased by him,

in various outlets within this Commonwealth.

(ii)  Pays to the owner or lessee of the premises a

commission or rental for the use of the premises.

(iii)  Operates at least ten vending machines.

(iv)  Meets all the other requirements for licensing of

wholesalers under Article II-A of the act of April 9, 1929

(P.L.343, No.176), known as "The Fiscal Code," including

maintaining an established place of business for the receiving,

storage and distribution of cigarettes.

(3)  Any person, including a franchisee, that meets all of

the following:

(i)  Owns and operates no fewer than [five] three retail

outlets in this Commonwealth, having one hundred per cent common

ownership.

(ii)  Purchases cigarettes from a cigarette stamping agency

or another wholesaler for resale to the ultimate consumer.

(iii)  Maintains complete and accurate records of all

purchases and sales in his or her main office and also in the

retail outlet.

Section 2.  This act shall take effect in 60 days.