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Substitute Senate Bill No. 37

Public Act No. 02-1

AN ACT CONCERNING THE RATES OF STATE CIGARETTE TAXES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 12-296 of the general statutes is repealed and the following is substituted in lieu thereof (Effective April 3, 2002):

A tax is imposed on all cigarettes held in this state by any person for sale, said tax to be at the rate of [twenty-five] fifty-five and one-half mills for each cigarette and the payment thereof shall be for the account of the purchaser or consumer of such cigarettes and shall be evidenced by the affixing of stamps to the packages containing the cigarettes as provided in this chapter.

Sec. 2. Section 12-316 of the general statutes is repealed and the following is substituted in lieu thereof (Effective April 3, 2002):

A tax is hereby imposed at the rate of [twenty-five] fifty-five and one-half mills for each cigarette upon the storage or use within this state of any unstamped cigarettes in the possession of any person other than a licensed distributor or dealer, or a carrier for transit from without this state to a licensed distributor or dealer within this state. Any person, including distributors, dealers, carriers, warehousemen and consumers, last having possession of unstamped cigarettes in this state shall be liable for the tax on such cigarettes if such cigarettes are unaccounted for in transit, storage or otherwise, and in such event a presumption shall exist for the purpose of taxation that such cigarettes were used and consumed in Connecticut.

Sec. 3. (Effective from passage) (a) An excise tax of thirty and one-half mills per cigarette, as defined in section 12-285 of the general statutes, is hereby imposed, on April 3, 2002, upon all distributors, as defined in said section 12-285, licensed under the provisions of chapter 214 of the general statutes and all dealers, as defined in said section 12-285, licensed under the provisions of said chapter 214. Payment of the tax shall be for the account of the purchaser or consumer of such cigarettes and shall be evidenced by the affixing of stamps to the packages containing the cigarettes as provided in said chapter 214.

(b) Each such licensed distributor and dealer shall, not later than May 1, 2002, file with the Commissioner of Revenue Services, on forms prescribed by said commissioner, a report which shall show the number of cigarettes in inventory as of the close of business on April 2, 2002, or at midnight on said date, upon which inventory the tax under subsection (a) of this section shall be imposed. Failure to file such report when due shall be sufficient reason to revoke the license of the distributor or dealer, as the case may be.

Approved February 28, 2002