PRINTER'S NO. 1823
No. 1476 Session of 2007
INTRODUCED BY FRANKEL, BENNINGTON, CURRY, FREEMAN, JOSEPHS,
LEACH, McGEEHAN, MELIO, MUNDY, RUBLEY, THOMAS AND WALKO,
JUNE 5, 2007
REFERRED TO COMMITTEE ON FINANCE, JUNE 5, 2007
AN ACT
1 Providing for cigarette tax definitions and imposition.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. Short title.
5 This act shall be known and may be cited as the Cigarette and
6 Other Tobacco Products Tax Act.
7 Section 2. Definitions.
8 The following words and phrases when used in this act shall
9 have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 "Cigarette." Any roll for smoking made wholly or in part of
12 tobacco, the wrapper or cover of which is made of any substance
13 or material other than tobacco regardless of the size or shape
14 of the roll and regardless of whether or not the tobacco is
15 flavored, adulterated or mixed with any other ingredient. The
16 term cigarette shall not include cigars, little cigars or
17 cigarillos.
1 "Smokeless tobacco." A product containing finely cut,
2 ground, powdered, blended or leaf tobacco made primarily for
3 individual consumption which is intended to be placed in the
4 oral or nasal cavity and not intended to be smoked. The term
5 includes chewing tobacco, dipping tobacco and snuff.
6 "Tobacco product." A product containing tobacco for
7 consumption. The term includes a cigar, a little cigar, a
8 cigarillo, pipe tobacco, smokeless tobacco, roll-your-own,
9 smoking tobacco, bidis or beedies and kretek. The term does not
10 include a cigarette.
11 "Tobacco product distributor or wholesaler." A person
12 engaged in the business of selling tobacco products that sells,
13 exchanges or distributes tobacco products to retailers,
14 consumers or other wholesalers or distributors in this
15 Commonwealth. The term includes a tobacco products manufacturer
16 that has within this Commonwealth any office, sales house or
17 other place of business.
18 "Wholesale price." The price for which a tobacco
19 manufacturer sells a tobacco product to a tobacco product
20 distributor or wholesaler, exclusive of any discount, rebate or
21 other reduction.
22 Section 3. Incidence and rate of tax on tobacco products.
23 (a) General rule.--Except as set forth in subsection (d), a
24 tax is imposed on a tobacco product sold or held for sale in
25 this Commonwealth by a tobacco products distributor or
26 wholesaler to a retailer or consumer. The tax is imposed on the
27 tobacco product wholesale price, regardless of the actual price
28 at which the tobacco product is sold and regardless of whether
29 the tobacco product is sold.
30 (b) Purchase of stamp.--A tobacco products distributor or
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1 wholesaler that brings tobacco products or causes tobacco
2 products to be brought into this Commonwealth is liable for the
3 tax imposed by this section. The tax imposed is to be paid by
4 the purchase of stamps as provided in this act. The stamp shall
5 be affixed to or impressed upon each package of tobacco product.
6 (c) Tax.--The tax imposed by this section shall be at the
7 rate of 59.2% of the wholesale price of the tobacco product.
8 (d) Applicability.--The tax under this section does not
9 apply to a tobacco product which the Commonwealth is prohibited
10 from taxing under the laws of the United States. It shall be
11 presumed that all tobacco products within this Commonwealth are
12 subject to tax. The burden of proof of exemption under this
13 subsection is on the taxpayer or remitter claiming exemption.
14 Section 4. Effective date.
15 This act shall take effect immediately.
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