Sec. 12-285a. Definitions for purposes of sections 12-286a, 12-295a, 12-314a
and 53-344(a). For purposes of sections 12-286a, 12-295a, 12-314a and subsection (a)
of section 53-344: (1) "Distributor" includes a manufacturer of tobacco products; (2)
"sale" or "sell" means an act done intentionally by any person, whether done as principal,
proprietor, agent, servant or employee, of transferring, or offering or attempting to transfer, for consideration, cigarettes or tobacco products, including bartering or exchanging,
or offering to barter or exchange, cigarettes or tobacco products; (3) "give" or "giving"
means an act done intentionally by any person, whether done as principal, proprietor,
agent, servant or employee, of transferring, or offering or attempting to transfer, without
consideration, cigarettes or tobacco products; (4) "deliver" or "delivering" means an
act done intentionally by any person, whether as principal, proprietor, agent, servant or
employee, of transferring, or offering or attempting to transfer, physical possession or
control of cigarettes or tobacco products.
(P.A. 96-240, S. 9, 10; P.A. 97-243, S. 11, 67; June Sp. Sess. P.A. 98-1, S. 3, 121.)
History: P.A. 96-240 effective June 6, 1996; P.A. 97-243 added definitions of "sale" or "sell", "give" or "giving" and
"deliver" or "delivering", effective July 1, 1997; June Sp. Sess. P.A. 98-1 deleted reference to Sec. 12-315a, effective June
24, 1998.
Sec. 12-285b. Licensure of cigarette manufacturers. Fees. (a) Every tobacco
product manufacturer, as defined in section 4-28h, selling cigarettes to consumers within
this state, whether directly or through a distributor, dealer, or similar intermediary or
intermediaries, shall secure a cigarette manufacturer's license from the Commissioner
of Revenue Services. Such license shall be renewable annually. The annual fee for a
cigarette manufacturer's license shall be five thousand dollars.
(b) The commissioner shall not issue or reissue a cigarette manufacturer's license
to an applicant if any of the following conditions apply: (1) The applicant is neither (A)
a participating manufacturer, as defined in Subsection II(jj) of the Master Settlement
Agreement, as defined in section 4-28h nor (B) in full compliance with section 4-28i;
(2) the applicant has imported cigarettes into the United States in violation of 19 USC
1681a; or (3) the applicant has imported or manufactured cigarettes that do not fully
comply with the federal Cigarette Labeling and Advertising Act, 15 USC 1331 et seq.
(c) Such license shall be valid for a period beginning with the date of license to the
thirtieth day of September next succeeding the date of license unless sooner revoked in
the same manner provided in section 12-295 for revocation of the license of a dealer or
distributor or unless the person to whom it was issued discontinues business. Upon
revocation or discontinuance of business, the holder of the license shall immediately
return such license to the commissioner. In the event of mutilation or destruction of
such license, a duplicate copy, marked as such, shall be issued by said commissioner
upon application accompanied by a fee of five dollars.
(P.A. 03-271, S. 2.)
History: P.A. 03-271 effective October 1, 2004.
Sec. 12-285c. Restrictions on shipping cigarettes. Unlawful delivery of cigarettes. Penalty. Civil Penalty. (a) No person engaged in the business of selling cigarettes shall ship or transport or cause to be shipped or transported any cigarettes to any
person in this state except to: (1) A cigarette distributor or dealer; (2) an export warehouse
proprietor pursuant to Chapter 52 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time
amended, or an operator of a customs bonded warehouse pursuant to 19 USC 1311 or
1555; or (3) a person who is an officer, employee or agent of the United States Government, this state or a department, agency, instrumentality or political subdivision of the
United States or of this state, when such person is acting in accordance with such person's
official duties. Notwithstanding the provisions of section 12-15, the Commissioner of
Revenue Services shall publish on the Internet website of the Department of Revenue
Services a list of every cigarette distributor or dealer. As used in this subsection, "cigarette distributor or dealer" means a person licensed as a cigarette distributor under section
12-288 or licensed as a dealer under section 12-287 or a person whose name appears
on a list of licensed distributors and dealers published by the Commissioner of Revenue
Services.
(b) No common or contract carrier shall knowingly transport cigarettes to a residential dwelling or to any person in this state who the common or contract carrier reasonably
believes is not a person described in subdivisions (1) to (3), inclusive, of subsection (a)
of this section. No person other than a common or contract carrier shall knowingly
transport cigarettes to any person in this state who is not a person described in subdivisions (1) to (3), inclusive, of subsection (a) of this section.
(c) When a person engaged in the business of selling cigarettes ships or transports
or causes to be shipped or transported any cigarettes to any described person in this state,
other than in the cigarette manufacturer's original container or wrapping, the container or
wrapping shall be plainly and visibly marked with the word "cigarettes". Any person
engaged in the business of selling cigarettes who ships or causes to be shipped any
cigarettes to any described person in this state (1) shall require, as a condition of delivery,
that the customer who is receiving the cigarettes shall sign an acknowledgment of receipt
and provide proper proof of age, and (2) may not sell such cigarettes to such customer
unless such proof of age is provided. For purposes of this subsection, "described person"
means a person described in subdivisions (1) to (3), inclusive, of subsection (a) of this
section.
(d) Whenever any cigarettes have been or are being shipped or transported in violation of this section, such cigarettes are declared to be contraband goods and the confiscation, search and forfeiture provisions of section 12-305 shall apply.
(e) Any person who violates the provisions of this section shall be guilty of a class
A misdemeanor and, for a second or subsequent violation, shall be guilty of a class D
felony.
(f) The Commissioner of Revenue Services may impose a civil penalty of not more
than five thousand dollars for each violation of this section. For purposes of this subsection, each shipment or transport of cigarettes shall constitute a separate violation. The
Attorney General, upon request of the commissioner, may bring an action in the superior
court for the judicial district of Hartford to collect such fine and for any injunctive or
equitable relief. In any action brought by the Attorney General to enforce the provisions
of section 12-285b or this section, the state shall be entitled to recover, when it is the
prevailing party, the costs of investigation, expert witness fees, costs of the action, and
reasonable attorneys' fees.
(P.A. 03-271, S. 1.)
History: P.A. 03-271 effective July 1, 2003.
Sec. 12-286. Dealers and distributors to be licensed; vending machines. (a)(1)
The commissioner shall, after May 25, 1994, require for an initial application for a
distributor's license, in addition to such other information deemed to be necessary, the
filing of three affidavits from three recognized manufacturers of cigarettes stating such
manufacturers' intent to supply the distributor if the applicant is granted a license. A
chain store shall be exempt from filing such affidavits. Any pending application on May
25, 1994, and any person purchasing the business of a licensed distributor shall be
exempt from filing such affidavits. For purposes of this subsection, "chain store" means
the operator or franchisor of five or more retail establishments with common ownership
and control.
(2) The commissioner may make public a list of recognized manufacturers of cigarettes.
(b) A separate license shall be required for each class of business if the applicant
is engaged in business both as a distributor and dealer. The commissioner shall prescribe
the form of application for a distributor's license and for a dealer's license. Each license
so issued shall be conspicuously displayed on the premises covered by the license.
(c) The commissioner shall make regulations not inconsistent with the law for the
licensing of vending machines.
(d) The commissioner may, in the commissioner's discretion, refuse to issue a license if there is reasonable ground to believe (1) that the applicant has wilfully made
any false statement of substance with respect to such application for license, (2) that
the applicant has neglected to pay any taxes due to this state or (3) that the applicant
has been convicted of violating any of the cigarette tax laws of this or any other state
or the cigarette tax laws of the United States or has such a criminal record that the
commissioner reasonably believes that such applicant is not a suitable person to be
issued a license, provided no refusal shall be rendered under this subdivision except in
accordance with the provisions of sections 46a-80 and 46a-81.
(e) Any person who knowingly sells, offers for sale or possesses with intent to sell
any cigarettes, without a license as provided in this chapter, shall be fined not more than
five hundred dollars or imprisoned for not more than three months, or both, for each
offense. Each day of such unauthorized operation may be deemed a separate offense.
(1949 Rev., S. 1973; 1961, P.A. 517, S. 12; 1967, P.A. 788, S. 2; P.A. 77-614, S. 139, 610; P.A. 84-525, S. 2, 8; P.A.
85-372, S. 2, 4; 85-600, S. 2, 4; P.A. 88-314, S. 12, 54; P.A. 93-15, S. 1, 9; 93-74, S. 12, 67; P.A. 94-80, S. 1, 3; P.A. 00-174, S. 29, 83.)
History: 1961 act increased dealer's license fee; 1967 act allowed each day of unauthorized operation to be considered
a separate offense, allowed commissioner to withhold license for applicants who withhold information or submit false or
misleading information etc. and deleted requirement that vending machine operators put name, address and license number
on each machine; P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1,
1979; P.A. 84-525 increased distributor's license fee from one hundred and fifty to one thousand dollars and the dealer's
license fee from ten to twenty-five dollars; P.A. 85-372 expanded the grounds for refusal of a license by the commissioner,
which were previously limited to withholding information or submitting false or misleading information; P.A. 85-600
provided for exceptions to the license fee requirement for distributors under which a distributor who sells exclusively to
retail stores he is operating pays a lower fee than other distributors as follows: (1) Two hundred fifty dollars annually if
he operates less than fifteen retail stores, (2) five hundred dollars annually if he operates fifteen or more retail stores but
less than twenty-five and (3) one thousand dollars, the fee for all distributors other than those under subdivisions (1) and
(2) above, if he operates twenty-five or more retail stores; P.A. 88-314 increased the fine and added the provision concerning
imprisonment applicable to any person who, without a license as required in this section, knowingly sells or possesses
cigarettes with intent to sell, effective July 1, 1988, and applicable to any tax which first becomes due and payable on or
after said date, to any return or report due on or after said date, or in the case of any ongoing obligation imposed in
accordance with said act, to the tax period next beginning on or after said date; P.A. 93-15 deleted license fee provisions,
deleted provision requiring dealer or distributor to apply for license before doing business, deleted reference to vending
machine license applications and made technical changes, effective July 1, 1993; P.A. 93-74 provided that commissioner
shall require affidavits from three recognized domestic manufacturers; P.A. 94-80 exempted chain stores and persons
purchasing the business of a licensed distributor from the required filing of affidavits, eliminated the requirement that a
manufacturer supplying an affidavit be a domestic manufacturer and defined the term "chain store" for purposes of section,
effective May 25, 1994; P.A. 00-174 divided existing provisions into Subsecs. (a) to (e), added Subsec. (a)(2) allowing
information about manufacturers to be released by the commissioner and made technical changes for purposes of organization and gender neutrality, effective July 1, 2000.
See Sec. 12-291a re penalty for failure to secure or renew license under Secs. 12-287, 12-288 and 12-291.
Sec. 12-286a. Notice of restriction on sale of cigarettes and tobacco products.
(a) Each distributor and each dealer, as defined in section 12-285, shall place and maintain in legible condition at each point of sale of cigarettes to consumers, including the
front of each vending machine, and each restricted cigarette vending machine a notice
which states (1) that the sale, giving or delivering of tobacco products, including cigarettes, to any person under eighteen years of age is prohibited by section 53-344, (2)
the purchase or misrepresentation of age by a person under eighteen years of age to
purchase cigarettes or tobacco products is prohibited by said section 53-344, and (3)
the penalties and fines for violating said section 53-344 and section 12-295a.
(b) Any person who violates subsection (a) of this section shall be fined not more
than one hundred dollars.
(P.A. 92-66, S. 3; P.A. 96-240, S. 2, 10.)
History: P.A. 96-240 amended Subsec. (a) to include reference to restricted cigarette vending machines and to require
notice of penalties for certain violations, effective June 6, 1996.
Sec. 12-287. Dealer's license. Each person engaging in, or intending to engage in,
the business of selling cigarettes in this state as a dealer shall secure a license from the
Commissioner of Revenue Services before engaging in such business or continuing to
engage therein. Subject to the provisions of section 12-286, such license shall be renewable annually. The annual fee for a dealer's license shall be twenty-five dollars. Such
license shall be valid for a period beginning with the date of license to the thirtieth day
of September next succeeding the date of license unless sooner revoked as provided in
section 12-295, or unless the person to whom it was issued discontinues business, in
either of which cases the holder of the license shall immediately return it to the commissioner. In the event of mutilation or destruction of such license, a duplicate copy, marked
as such, shall be issued by said commissioner upon application accompanied by a fee
of five dollars.
(1949 Rev., S. 1974, 1959, P.A. 620, S. 1; P.A. 75-477, S. 1, 2; P.A. 77-614, S. 139, 610; P.A. 84-525, S. 3, 8; P.A.
93-15, S. 2, 9.)
History: 1959 act increased fees for original and duplicate licenses; P.A. 75-477 required annual renewal of license,
previously license was permanently in effect; P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979; P.A. 84-525 increased the fee from ten to twenty-five dollars; P.A. 93-15 made minor
changes re issuance and renewal of a dealer's license, effective July 1, 1993.
See Sec. 12-291a re penalty for failure to secure or renew license.
Sec. 12-288. Distributor's license. Each person engaging in, or intending to engage in, the business of selling cigarettes in this state as a distributor shall secure a
license from the Commissioner of Revenue Services before engaging or continuing to
engage in such business. Subject to the provisions of section 12-286, such license shall
be renewable annually. The annual fee for a distributor's license shall be one thousand
dollars, provided in the case of a distributor who sells cigarettes as a distributor exclusively to retail stores which such distributor is operating, the fee for such distributor's
license shall be: (1) Two hundred fifty dollars annually if such distributor operates
less than fifteen such retail stores; (2) five hundred dollars annually if such distributor
operates fifteen or more but less than twenty-five such retail stores; and (3) one thousand
dollars annually if such distributor operates twenty-five or more such retail stores. Such
license shall be valid for a period beginning with the date of license to the thirtieth
day of September next succeeding the date of license unless sooner revoked by the
commissioner as provided in section 12-295 or unless the person to whom such license
was issued discontinues business, in either of which cases the holder of the license shall
immediately return it to the Commissioner of Revenue Services.
(1949 Rev., S. 1975; P.A. 77-614, S. 139, 610; P.A. 93-15, S. 3, 9.)
History: P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979;
P.A. 93-15 added provisions re fee for and requirements of distributor's license, effective July 1, 1993.
See Sec. 12-291a re penalty for failure to secure or renew license.
Sec. 12-289. Vending machines; inspection and approval; identification; sealing on violation. Revocation of license; hearing. (a) Each cigarette vending machine
licensed for use in this state shall be subject to the inspection and approval of the Commissioner of Revenue Services and only the owner of such machine or his authorized
representative shall service and maintain such machines in good operating condition
and only he shall provide for the replenishing of cigarettes in such machines. No cigarette
vending machine shall be approved for use in this state unless it is so constructed, located
and serviced that the Connecticut cigarette stamp or impression may be seen and identified on at least one package of each brand of cigarettes sold therein.
(b) Each cigarette vending machine operator shall place and maintain in legible
condition on the front of each vending machine operated or controlled by him, his name,
address, telephone number and license number and a telephone number which may be
called for service or to report misuse of the machine at any hour of the day if different
from the number of the operator.
(c) Whenever a cigarette vending machine is not properly identified as required by
this section, or whenever any unstamped cigarettes are found in any machine in violation
of this chapter, or whenever any cigarette vending machine is placed in a location in
violation of section 12-289a, the commissioner or an authorized agent of the commissioner shall seal the machine to prevent sale or removal of any cigarettes from the
machine until such time as the violation is corrected in the presence of an authorized
agent of the commissioner. Any person other than an authorized agent of the Commissioner of Revenue Services who knowingly removes or otherwise tampers with any seal
or seals placed on any vending machine by the commissioner or an authorized agent
shall be fined not more than one thousand dollars or imprisoned not more than one year
or both. The commissioner may suspend or revoke the license of any cigarette vending
machine operator for failure to comply with any of the provisions of this chapter or
regulations related thereto, following a hearing with respect to which notice in writing,
specifying the time and place of such hearing and requiring such operator to show cause
why such license should not be revoked, is mailed or delivered to such operator not less
than ten days preceding the date of such hearing. Such notice may be served personally
or by registered or certified mail. The commissioner shall not issue a new license to a
former licensee whose license was revoked unless the commissioner is satisfied that
such former licensee will comply with the provisions of this chapter or regulations
related thereto.
(1949, S. 1123d; 1967, P.A. 788, S. 3; 1969, P.A. 70, S. 1; P.A. 77-614, S. 139, 610; P.A. 84-492, S. 1, 8; P.A. 88-314,
S. 13, 54; P.A. 92-66, S. 1.)
History: 1967 act placed previous provisions in Subsecs. (a) and (c), added Subsec. (b) requiring operator's name,
address and license number on each machine, amended Subsec. (a) to require that machines be accessible to inspection
and approval of commissioner rather than accessible to purchaser and to require that stamp be visible on at least one
cigarette pack of each brand and added provisions in Subsec. (c) re sealing machines for violations of requirements; 1969 act
required telephone number for service calls to be posted on machine in Subsec. (b); P.A. 77-614 substituted commissioner of
revenue services for tax commissioner, effective January 1, 1979; P.A. 84-492 amended Subsec. (c) to include specific
procedures for notice of hearings and concerning the commissioner's discretion relative to issuance of a new license to a
former licensee whose license was revoked; P.A. 88-314 amended the provision in Subsec. (c) imposing a fine on any
person, other than an agent of the commissioner, who removes or tampers with any seal on a vending machine, to require
that such action must occur with knowledge, effective July 1, 1988, and applicable to any tax which first becomes due and
payable on or after said date, to any return or report due on or after said date, or in the case of any ongoing obligation
imposed in accordance with said act, to the tax period next beginning on or after said date; P.A. 92-66 amended Subsec.
(b) to add report for misuse of vending machine and Subsec. (c) to add violation of Sec. 12-289a to grounds for sealing
machine.
See Sec. 21a-47 re penalty for violation of section.
Sec. 12-289a. Vending machines: Placement restrictions. Penalties. (a) No cigarette vending machine or restricted cigarette vending machine may be placed in an
area, facility or business which is frequented primarily by minors. No cigarettes may
be dispensed from any machine other than a cigarette vending machine or a restricted
cigarette vending machine.
(b) A cigarette vending machine may be placed only in (1) an area, facility or business which is accessible only to adults or (2) an area, facility or business permitted under
chapter 545 if the area, facility or business has a separate area accessible only to adults
and the machine is placed in such area.
(c) A cigarette vending machine, until July 1, 1998, may be placed in an area, facility
or business permitted under chapter 545 which does not have a separate area accessible
only to adults provided the machine is not placed in a vestibule, lobby, entryway, exit
or restroom and the machine is under the direct supervision, and in the direct line of
sight of, an adult employee of the permittee.
(d) A cigarette vending machine, until May 1, 1997, may be placed in an area,
facility or business not provided for under subsections (b) and (c) of this section provided
the machine is not placed in a vestibule, lobby, entryway, exit or restroom and the
machine is under the direct supervision, and in the direct line of sight of, an adult employee.
(e) After May 1, 1997, no cigarette vending machine may be placed in any area,
facility or business other than as provided in subsections (b) and (c) of this section.
(f) After July 1, 1998, no cigarette vending machine may be placed in any area,
facility or business other than as provided in subsection (b) of this section.
(g) The Commissioner of Revenue Services shall assess any person, dealer or distributor who violates the provisions of this section a civil penalty of two hundred fifty
dollars for a first violation and five hundred dollars for a second violation within eighteen
months. For a third violation within eighteen months, such penalty shall be five hundred
dollars and any such machine shall be immediately removed from such area, facility or
business and no such machine may be placed in such area, facility or business for a
period of one year following such removal.
(h) Nothing in this section shall be construed as limiting a town or municipality
from imposing more restrictive conditions on the use of vending machines for the sale
of cigarettes. A municipality shall be responsible for the enforcement of such conditions.
(P.A. 92-66, S. 2; P.A. 96-240, S. 3, 10.)
History: P.A. 96-240 amended Subsec. (a) to add reference to restricted cigarette vending machines and to bar dispensing
of cigarettes from any machine other than those defined in this chapter, deleted former Subsec. (b) re placement of cigarette
vending machines, relettered former Subsec. (c) as Subsec. (h) and inserted new Subsecs. (b) to (g), inclusive, re placement
of machines and penalties for violations, effective June 6, 1996.
Statute does not preempt town ordinance prohibiting all cigarette vending machines within its borders. 256 C. 105.
Subsec. (h):
Town ordinance prohibiting all cigarette vending machines is valid and is not preempted by statute since it addresses
matter of concurrent state and local concern, does not conflict with statute and is rationally related to protection of community's public health, safety and general welfare. 256 C. 105.
Sec. 12-290. Price signs on vending machines. Section 12-290 is repealed.
(1957, P.A. 582, S. 2; 1959, P.A. 160.)
Sec. 12-291. Vending machine dealer's license. Section 12-291 is repealed, effective July 1, 1993.
(1949, 1955, S. 1124d; P.A. 77-614, S. 139, 610; P.A. 93-15, S. 8, 9.)
Sec. 12-291a. Penalty for failure to secure or renew license. Any person who
fails to secure or renew a license as provided in section 12-287 or 12-288 shall forfeit
as a penalty for each day of operation without such license the sum of five dollars. The
commissioner is authorized to waive all or any part of the penalties provided in this
section when it is proven to his satisfaction that the failure to secure or renew such
license was due to reasonable cause.
(1967, P.A. 788, S. 4; P.A. 93-15, S. 4, 9.)
History: P.A. 93-15 deleted reference to repealed Sec. 12-291 re penalty for failure to secure a vending machine dealer's
license, effective July 1, 1993.
Sec. 12-292. Advertising sale of untaxed cigarettes. Any written advertisement
in this state for the sale of untaxed cigarettes for use and consumption in this state shall
contain the following words in not less than fourteen point reverse type in block form:
"These cigarettes are subject to the payment of the Connecticut cigarette use tax and
the Connecticut use tax and may be subject to seizure as contraband goods." In the
case of any such advertisement being announced verbally, such announcement shall be
immediately followed by the words above enclosed in quotation marks. Any person
engaged in the business of selling cigarettes, whether or not issued a license by the
commissioner under the provisions of this part, violating the provisions of this section
shall be fined five hundred dollars for each offense.
(1949, S. 1125d; P.A. 88-314, S. 14, 54; P.A. 89-251, S. 15, 203; P.A. 03-225, S. 4.)
History: P.A. 88-314 increased the fine to five hundred dollars for each violation of the requirement that any advertisement concerning the sale of untaxed cigarettes must contain certain words that the cigarettes are subject to Connecticut
cigarette tax, effective July 1, 1988, and applicable to any tax which first becomes due and payable on or after said date,
to any return or report due on or after said date, or in the case of any ongoing obligation imposed in accordance with said
act, to the tax period next beginning on or after said date; P.A. 89-251 added reference to fact that cigarettes are subject
to the state use tax and that this section is applicable whether or not the person selling has been issued a license to sell
cigarettes by the state; P.A. 03-225 added provision re type size of advertisement, effective July 1, 2003.
Sec. 12-293. Notice to Tax Commissioner of number of vending machines. Section 12-293 is repealed.
(1949 Rev., S. 1976; 1955, S. 1127d; 1967, P.A. 788, S. 5.)
Sec. 12-293a. Monthly report. Registration fee for vending machines. List of
customers. (a) Each licensed distributor and dealer shall file with the Commissioner
of Revenue Services, on or before the twenty-fifth day of each month, a report for the
calendar month immediately preceding in such form and containing such information
as the commissioner may prescribe. The return shall be accompanied by a payment of
the amount of the tax shown to be due thereon. The commissioner by regulation may
exempt from the monthly reporting requirements of this section those distributors and
dealers who do not acquire unstamped cigarettes and in lieu thereof may require an
annual report, prescribed as to form by the Commissioner of Revenue Services and
bearing notice to the effect that false statements made in such report are punishable, if,
in the commissioner's discretion, the enforcement of this chapter would not be adversely
affected.
(b) Each licensed distributor or dealer who owns or operates more than five cigarette
vending machines shall file with the Commissioner of Revenue Services, on or before
the fifteenth day of each month, a report in such form as the commissioner may prescribe
for the calendar month immediately preceding, which report shall disclose the number
of cigarette vending machines owned, operated, acquired and disposed of by him, together with such other information as the commissioner shall require. Each licensed
distributor or dealer who owns or operates not more than five cigarette vending machines
shall file such report with the commissioner semiannually, at such time and in such form
as the commissioner may prescribe.
(c) If any person fails to pay the amount of tax reported due on its report within the
time specified under this section, there shall be imposed a penalty equal to ten per cent
of such amount due and unpaid, or fifty dollars, whichever is greater. No person shall
be subject to a penalty under both this section and subsection (b) of section 12-309.
Such amount shall bear interest at the rate of one per cent per month or fraction thereof,
from the due date of such tax until the date of payment.
(d) Subject to the provisions of section 12-3a, the commissioner may waive all or
part of the penalties provided under this chapter when it is proven to his satisfaction
that the failure to pay any tax was due to reasonable cause and was not intentional or
due to neglect.
(1967, P.A. 788, S. 6; P.A. 77-614, S. 139, 610; P.A. 79-18, S. 1, 2; P.A. 82-172, S. 5, 14; P.A. 84-525, S. 4, 8; P.A.
88-314, S. 15, 54; P.A. 93-15, S. 5, 9; P.A. 95-26, S. 9, 52; P.A. 00-174, S. 57, 83; P.A. 04-201, S. 8.)
History: P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979;
P.A. 79-18 required monthly report from operators of more than five machines, rather than from operators of two or more
machines as previously and required semiannual report from operators of five or fewer machines and substituted "period
for which a report is filed" for "month" in provision re registration fee for newly acquired machines; P.A. 82-172 added
the penalty of fifty dollars for failure to file reports with the commissioner when required, which penalty replaced the
previous requirement of five dollars for each day any such report is overdue and eliminated provision allowing waiver of
penalty by commissioner under certain conditions; P.A. 84-525 included the provision permitting the commissioner to
require, by regulation, the annual reporting and monthly updating of a customers list; P.A. 88-314 added (1) the statement
in reference to the monthly report to be filed by such distributor and dealer that the report is to be accompanied by the
amount of tax due thereon and (2) provisions related to the penalty and interest for failure to pay the tax within the time
specified, including the rate of interest to be added and the period during which interest shall run, effective July 1, 1988,
and applicable to any tax which first becomes due and payable on or after said date, to any return or report due on or after
said date, or in the case of any ongoing obligation imposed in accordance with said act, to the tax period next beginning
on or after said date; P.A. 93-15 deleted references to a vending machine dealer's license and changed date of report from
the tenth day of the month to the twenty-fifth day of the month, effective July 1, 1993; P.A. 95-26 divided section into
Subsecs. (a) to (e) and amended Subsec. (d) to lower interest rate from one and one-fourth to one per cent, effective July
1, 1995, and applicable to taxes due and owing on or after July 1, 1995, whether or not those taxes first became due before
said date; P.A. 00-174 amended Subsec. (a) to delete a reference to affidavit, to add provisions re prescribed form and
false statements, and to make technical changes for purposes of gender neutrality, effective July 1, 2000; P.A. 04-201
deleted former Subsec. (c) re authorization to adopt regulations and redesignated existing Subsecs. (d) and (e) as new
Subsecs. (c) and (d), effective June 3, 2004.
Sec. 12-294. Transfer of license. Successor tax liability. (a) If a distributor or
dealer removes his or her business from one location to another during the period in
which the license is in force, the commissioner shall transfer the license to the new
location without an additional fee.
(b) (1) If any distributor liable for any amount due under this chapter sells out his
or her business or stock of goods or quits the business, such distributor's successors or
assigns shall withhold a sufficient amount of the purchase price to pay the amount due
under this chapter from the distributor until the distributor provides to such successor
or assignee a receipt from the commissioner showing that such amount has been paid
or a certificate stating that no amount is due.
(2) If any such successor or assignee fails to withhold the purchase price as required,
such successor or assignee shall be personally liable for the payment of the amount
required to be withheld by such successor or assignee to the extent of the purchase price,
valued in money.
(c) (1) No later than the sixtieth day after the latest of the dates specified in subdivision (2) of this subsection, the commissioner shall either issue the certificate stating that
no amount is due or mail notice of the amount that must be paid as a condition of
issuing the certificate. Such notice shall be mailed to such successor or assignee at such
successor's or assignee's address as it appears on the records of the commissioner.
(2) For purposes of subdivision (1) of this subsection, the latest of the following
dates shall apply: (A) The date the commissioner receives a written request from the
successor or assignee for a certificate; (B) the date of the sale of the business or stock
of goods; or (C) the date the former owner's records are made available for audit.
(d) Failure of the commissioner to mail the notice referred to in subsection (c) of this
section shall release the successor or assignee from any further obligation to withhold the
purchase price as provided in subsection (b) of this section. The period within which
the obligation of the successor or assignee may be enforced shall commence on the date
the person sells out his or her business or stock of goods or quits the business or on the
date that the assessment against such person becomes final, whichever event occurs
later, and shall end three years after such date.
(e) The certificate provided for in subsection (c) of this section may be issued after
the payment of all amounts due under this chapter, according to the records of the department as of the date of the certificate, or after the payment of the amounts is secured to
the satisfaction of the commissioner.
(f) The obligation of the successor or assignee shall be enforced by serving a notice
of successor liability on the successor or assignee. The notice shall be served in the
manner prescribed under section 12-309 for service of a notice of assessment, not later
than three years after the date the commissioner is notified by the successor or assignee
of the purchase of the business or stock of goods. The successor or assignee may protest
the assessment in the manner provided in section 12-311. Sixty days after the date on
which a notice of assessment is mailed, an assessment shall become final except for
any amount as to which the successor or assignee has filed a written protest with the
commissioner, as provided in section 12-311.
(1949 Rev., S. 1977; P.A. 03-225, S. 5.)
History: P.A. 03-225 designated existing provisions as Subsec. (a), making a technical change therein, and added
Subsecs. (b) to (f), inclusive, re successor tax liability, effective July 1, 2003.
Sec. 12-295. Suspension or revocation of license. Issuance of new license after
revocation. (a) The commissioner may suspend or revoke the license of any dealer or
distributor for failure to comply with any provision of this chapter or regulations related
thereto or for the sale or delivery of tobacco in any form to a minor under eighteen years
of age, following a hearing with respect to which notice in writing, specifying the time
and place of such hearing and requiring such dealer or distributor to show cause why
such license should not be revoked, is mailed or delivered to such dealer or distributor
not less than ten days preceding the date of such hearing. Such notice may be served
personally or by registered or certified mail.
(b) If the commissioner finds, after a hearing as provided in subsection (a) of this
section, that a dealer or distributor has violated any provision of sections 12-326a to
12-326h, inclusive, the commissioner shall suspend such dealer's or distributor's license
for not less than seven days and assess a penalty of not less than one thousand dollars
and, for a second or subsequent violation within a five-year period, the commissioner
shall suspend such dealer's or distributor's license for not less than thirty days and assess
a penalty of not less than five thousand dollars. The commissioner shall order such
dealer or distributor to conspicuously post a notice in a public place stating that cigarettes
cannot be sold during the period of such suspension and the reason therefor. Any sale
of cigarettes by such dealer or distributor during the period of such suspension shall be
deemed an additional violation of said sections.
(c) The commissioner shall not issue a new license to a former licensee whose
license was revoked unless the commissioner is satisfied that such former licensee will
comply with the provisions of this chapter or regulations related thereto.
(1949 Rev., S. 1978; 1967, P.A. 788, S. 7; P.A. 84-492, S. 2, 8; 84-525, S. 7, 8; P.A. 93-368, S. 1; P.A. 94-80, S. 2, 3.)
History: 1967 act allowed suspension of license in addition to revocation and allowed either action to be taken upon
conviction for acquiring, possessing or selling cigarettes illegally; P.A. 84-492 and P.A. 84-525 provided for revocation
for failure to comply with regulations, removed the reference to revocation based on conviction of acquiring, possessing
or selling cigarettes illegally, set out hearing procedures and included provisions concerning the commissioner's power
to not issue a license to a person whose license was previously revoked; P.A. 93-368 designated provisions re suspension
or revocation of licenses as Subsec. (a) and amended said Subsec. to authorize the commissioner to suspend or revoke a
license for failure to comply with Subsec. (a) of Sec. 53-344, inserted new Subsec. (b) re the sanctions and penalties
imposed by the commissioner upon a dealer or distributor who has violated any provision of Secs. 12-326a to 12-326h,
inclusive, and designated provisions re issuance of a new license to a former licensee as Subsec. (c); P.A. 94-80 amended
Subsec. (a) replacing "subsection (a) of section 53-344" with "the sale or delivery of tobacco in any form to a minor under
eighteen years of age" to be subject to suspension or revocation of license, effective May 25, 1994.
Sec. 12-295a. Purchase by, or sale to, minors. Penalties. Suspension of licenses.
Appeals. (a) If the Commissioner of Revenue Services finds, after a hearing, that a
minor has purchased cigarettes or tobacco products, said commissioner shall assess such
minor a civil penalty of not more than fifty dollars for the first violation and not more
than one hundred dollars for any second or subsequent offense.
(b) If said commissioner finds, after a hearing, that any person employed by a dealer
or distributor, as defined in section 12-285, has sold, given or delivered cigarettes or
tobacco products to a minor other than a minor who is delivering or accepting delivery
in his capacity as an employee, said commissioner shall assess such person a civil penalty
of one hundred dollars for the first violation and one hundred fifty dollars for a second
or subsequent violation within eighteen months.
(c) If said commissioner finds, after a hearing, that any dealer or distributor has
sold, given or delivered cigarettes or tobacco products to a minor other than a minor
who is delivering or accepting delivery in his capacity as an employee, or such dealer
or distributor's employee has sold, given or delivered cigarettes or tobacco products to
such minor, said commissioner shall assess such dealer or distributor a civil penalty of
two hundred fifty dollars for the first violation and five hundred dollars for a second
violation within eighteen months. For a third violation within eighteen months, such
dealer or distributor shall be assessed a civil penalty of five hundred dollars and any
license held by such dealer or distributor under this chapter shall be suspended for not
less than thirty days.
(d) If said commissioner finds, after a hearing, that any owner of an establishment
in which a cigarette vending machine or restricted cigarette vending machine is located
has sold, given or delivered cigarettes or tobacco products from any such machine to a
minor other than a minor who is delivering or accepting delivery in his capacity as an
employee, or has allowed cigarettes or tobacco products to be sold, given or delivered
to such minor from any such machine, said commissioner shall assess such dealer or
distributor a civil penalty of two hundred fifty dollars for the first violation and five
hundred dollars for a second violation within eighteen months. For a third violation
within eighteen months, such dealer or distributor shall be assessed a civil penalty of
five hundred dollars and any such machine shall be immediately removed from such
establishment and no such machine may be placed in such establishment for a period
of one year following such removal.
(e) Any person aggrieved by any action of the commissioner pursuant to this section
may take any appeal of such action as provided in sections 12-311 and 12-312.
(P.A. 96-240, S. 6, 10.)
History: P.A. 96-240 effective July 1, 1997.
Sec. 12-296. Imposition of tax. A tax is imposed on all cigarettes held in this state
by any person for sale, said tax to be at the rate of seventy-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.
(1949 Rev., S. 1979; 1955, S. 1128d; November, 1955, S. N136; 1957, P.A. 582, S. 1; 1961, P.A. 578, S. 12; 604, S.
6; 1963, P.A. 651, S. 3; February, 1965, P.A. 326, S. 1; 1969, P.A. 608, S. 1; June, 1969, P.A. 1, S. 44; June, 1971, P.A.
5, S. 114; 8, S. 25; June Sp. Sess. P.A. 83-1, S. 2, 15; P.A. 89-16, S. 4, 31; June Sp. Sess. P.A. 91-3, S. 131, 168; P.A. 93-74, S. 13, 14, 67; P.A. 02-1, S. 1; P.A. 03-2, S. 29.)
History: 1961 acts increased rate, decreased allocation to soldiers, sailors and marines' fund from 1/6 to 1/10 of proceeds,
and changed fund's upper limit to a market value of 30 million dollars; 1963 act further increased rate and deleted provision
for allocating any of the proceeds to said fund; 1965 act increased tax rate from three to four mills per cigarette; 1969 acts
temporarily increased rate to seven and one-quarter mills per cigarette from July 1, 1969, to June 30, 1971, and further
increased temporary rate to eight mills; 1971 acts extended closing date for higher rate to June 30, 1973, and then permanently increased rate to ten and one-half mills; June Sp. Sess. P.A. 83-1 increased the rate of tax from ten and one-half
mills to thirteen mills for each cigarette; P.A. 89-16 increased the rate of tax from thirteen mills to twenty mills for each
cigarette, effective March 23, 1989, and applicable to cigarettes held for sale on or after April 1, 1989; June Sp. Sess. P.A.
91-3 increased the rate of tax from twenty mills to twenty-two and one-half mills for each cigarette, effective August 22,
1991, and applicable to cigarettes held for sale on or after October 1, 1991; P.A. 93-74, S. 13, increased the rate of tax
from twenty-two and one-half mills to twenty-three and one-half mills for each cigarette, effective May 19, 1993, and
applicable to sales of cigarettes occurring on and after July 1, 1993, and P.A. 93-74, S. 14, increased the rate of tax from
twenty-three and one-half mills to twenty-five mills for each cigarette, effective May 19, 1993, and applicable to sales of
cigarettes occurring on and after July 1, 1994; P.A. 02-1 increased the rate of tax from twenty-five mills to fifty-five and
one-half mills for each cigarette, effective April 3, 2002; P.A. 03-2 changed rate from fifty-five and one-half mills to
seventy-five and one-half mills, effective February 28, 2003, and applicable to sales occurring on or after March 15, 2003.
Cited. 225 C. 528, 531.
Cited. 36 CS 59, 62.
Sec. 12-296a. Additional tax imposed in direct relationship to amount of any
reduction in federal tax below a certain level. In addition to the tax imposed pursuant
to section 12-296, if the tax imposed by the federal government on cigarettes manufactured in or imported into the United States ever falls below eight dollars per thousand,
generally, on cigarettes weighing not more than three pounds per thousand or sixteen
dollars and eighty cents per thousand, generally, on cigarettes weighing more than three
pounds per thousand, a tax is imposed on all cigarettes held in the state by any person
for sale equal to the difference between: (1) The tax imposed on such cigarettes by the
federal government at or prior to the time such cigarettes become subject to taxation in
this state; and (2) the tax which would have been imposed on such cigarettes by the
federal government if the rate of tax on cigarettes by the federal government at the time
a tax was imposed on such cigarettes by the federal government was equal to the rate
of tax on such cigarettes by the federal government on July 1, 1985.
(P.A. 85-600, S. 3, 4.)
Sec. 12-297. Exemption from tax for cigarettes sold to certain state institutions
for patients or inmates. The tax imposed under the provisions of section 12-296 shall
not apply to cigarettes sold to any state institution other than a correctional institution
for distribution to patients or inmates, or to cigarettes purchased with revolving funds
under the jurisdiction of any state institution other than a correctional institution, when
the cigarettes purchased are to be consumed by patients or inmates confined at such
institution.
(1949, S. 1126d; P.A. 89-16, S. 28, 31.)
History: P.A. 89-16 provided for exclusion of correctional institutions from state institutions eligible for exemption
from cigarette tax on cigarettes for distribution to patients or inmates.
Does not violate due process. 225 C. 528, 530-547. P.A. 89-16, Sec. 28 cited. Id. Cited. 235 C. 865, 874.
Sec. 12-298. Commissioner to supply stamps or decals. The Commissioner of
Revenue Services shall secure stamps or heat-applied decals, of such design and denomination as he prescribes, suitable to be affixed to packages of cigarettes as evidence of
the payment of the tax imposed by this chapter. He shall sell such stamps or decals (a)
to licensed distributors to be affixed to packages of cigarettes to be sold on or after
September 1, 1971, at a discount of one per cent from their face value and (b) to licensed
dealers at their face value. The commissioner may, in his discretion, permit a licensed
distributor or licensed dealer to pay for such stamps or decals within thirty days after
the date of purchase, provided a bond or other security satisfactory to the commissioner
in an amount not less than the sale price of such stamps or decals shall have been filed
with the commissioner conditioned upon payment for such stamps or decals. The bond
or other security shall be in full force and effect for a period of three years and one
month following the expiration of the license or such other period as the commissioner
may determine, unless a certificate is issued by the commissioner to the effect that all
taxes due the state have been paid. He shall keep accurate records of all stamps or decals
sold to each distributor and dealer and shall pay over all receipts from the sale of stamps
or decals to the State Treasurer daily as herein provided.
(1949 Rev., S. 1980; November, 1955, S. N137; 1961, P.A. 604, S. 7; 1963, P.A. 651, S. 4; February, 1965, P.A. 326,
S. 2; 1969, P.A. 608, S. 2; June, 1969, P.A. 1, S. 45; June, 1971, P.A. 5, S. 115; 8, S. 26; P.A. 77-614, S. 139, 610; P.A.
91-231, S. 1; P.A. 93-15, S. 6, 9.)
History: 1961 and 1963 acts reduced discount on sale of stamps; 1965 act substituted "'(Specified) Permit' or 'Specified
Permits'" for "'Beer Permit'"; 1969 acts reduced discount on stamps from two and seven-tenths to two and one-quarter
per cent of face value applicable to cigarettes to be sold before July 1, 1969, and after July 1, 1971, and set interim discount
at one and three-tenths per cent and further changed interim discount to one and one-eighth per cent; 1971 acts changed
closing date for interim rate to July 1, 1973, and later reduced discount permanently to one per cent effective with respect
to cigarettes to be sold on or after September 1, 1971; P.A. 77-614 substituted commissioner of revenue services for tax
commissioner, effective January 1, 1979; P.A. 91-231 provided for the acceptance of security other than bonds by the
commissioner; P.A. 93-15 authorized use of heat applied decals to evidence payment of cigarette tax and added provision
extending bond for a period of three years and one month beyond expiration of license, effective July 1, 1993.
Sec. 12-299. Metering machine. Section 12-299 is repealed, effective June 8,
1998.
(1949 Rev., S. 1981; P.A. 77-614, S. 139, 610; P.A. 91-231, S. 2; P.A. 93-15, S. 7, 9; P.A. 98-262, S. 21, 22.)
Sec. 12-300. Resale of stamps restricted. Redemption. No distributor or dealer
shall sell or transfer any stamps issued under the provisions of this chapter, provided
the commissioner may, at his discretion, authorize distributors to sell stamps for the
purposes of facilitating a tax increase program. The commissioner shall redeem any
unused stamps presented by any licensed distributor or licensed dealer at a price equal
to the amount paid for such stamps by such dealer or distributor. The commissioner
shall, upon proof satisfactory to him and in accordance with regulations promulgated
by him, redeem any stamp affixed to any package of cigarettes which has become unfit
for use and consumption or unsalable.
(1949 Rev., S. 1982; 1963, P.A. 108.)
History: 1963 act allowed commissioner to authorize distributors to sell stamps to facilitate a tax increase program.
Sec. 12-301. Nonresidents may be authorized to affix stamps. When the Commissioner of Revenue Services finds that the collection of the tax imposed by this chapter
would be facilitated thereby, he may, in his discretion, authorize any person resident or
located outside this state engaged in the business of manufacturing cigarettes, or any
person resident or located outside this state who ships cigarettes into this state for sale
to dealers in this state, and who qualifies as a distributor, but need not have a place of
business in this state, upon complying with the requirements of the commissioner, to
affix, or cause to be affixed, the stamps required by this chapter on behalf of the purchasers of such cigarettes who would otherwise be taxable therefor, and the commissioner
may sell such stamps to such person as provided in section 12-298, or authorize the use
of a machine by such person as provided in section 12-299. The commissioner shall
require a bond or other security of such nonresident person, satisfactory to the commissioner, in an amount not to exceed ten thousand dollars, conditioned upon the payment
of the tax and compliance with such other requirements as the commissioner may specify. Such bond shall be issued by a surety company authorized to do business in the
state and shall be in full force and effect for a period of three years and one month
following the expiration of the bond or such other period as the commissioner may
determine, unless a certificate is issued by the commissioner to the effect that all taxes
due the state have been paid. Such nonresident person shall agree to submit his books,
accounts and records to examination during reasonable business hours by the commissioner or his authorized agent. Each such nonresident person, other than a foreign corporation which has complied with the provisions of section 33-922, shall, in writing, appoint the Secretary of the State and his successors in office to be his attorney, such
appointment to be made, acknowledged and filed in the manner prescribed in said section
33-922. Service upon said attorney shall be sufficient service upon any such nonresident
person, whether a foreign corporation which has complied with the provisions of said
section 33-922 or not, and may be made by leaving a duly attested copy of the process
with the Secretary of the State or at his office. When legal process against any such
nonresident person is served upon the Secretary of the State, he shall notify such nonresident person in the manner specified in section 33-929 and shall collect the fee specified
therein. Any person complying with the provisions of this section shall thereupon become a licensed distributor within the meaning of this chapter and shall be subject to
all provisions of this chapter applicable to licensed distributors, except as otherwise
ruled by the commissioner.
(1949 Rev., S. 1983; 1963, P.A. 642, S. 9; P.A. 77-614, S. 139, 610; P.A. 91-231, S. 3; P.A. 96-271, S. 158, 254.)
History: 1963 act corrected obsolete references to the corporation law; P.A. 77-614 substituted commissioner of revenue
services for tax commissioner, effective January 1, 1979; P.A. 91-231 provided for the acceptance of security other than
bonds by the commissioner and increased the effective period of such security to three years and one month, deleting prior
provision re acceptance of cash in lieu of bonds; P.A. 96-271 replaced references to Sec. 33-400 with Sec. 33-922 and
reference to Sec. 33-411 with Sec. 33-929, effective January 1, 1997.
Sec. 12-302. Distributors to affix stamps. (a) Except as otherwise provided in
subsection (b) of this section, each distributor shall affix, or cause to be affixed, at the
location for which such distributor's license is issued, in such manner as the commissioner may specify in regulations issued pursuant to this chapter, to each individual
package of cigarettes sold or distributed by the distributor, stamps of the proper denomination, as required by section 12-296. Such stamps may be affixed by a distributor at
any time before the cigarettes are transferred out of the distributor's possession.
(b) No distributor shall affix, or cause to be affixed, to a package of cigarettes sold
or distributed by such distributor, stamps, if the package (1) is not labeled in conformity
with the requirements of the federal Cigarette Labeling and Advertising Act, 79 Stat.
282, 15 USC 1331 et seq., or any other federal requirement for the placement of labels,
warnings and other information, applicable to packages of cigarettes that are intended
to be sold within the United States; (2) bears any label or notice prescribed by the United
States Department of Treasury to identify cigarettes intended for export and exempt
from tax by the United States pursuant to 26 USC 5704(b), including "For export only",
"U.S. Tax-exempt", "For use outside U.S." or similar wording indicating that the manufacturer did not intend that the product be sold within the United States, including any
notice or label described in 27 CFR 290.185; (3) has been imported into the United States
after January 1, 2000, in violation of 26 USC 5754 or regulations adopted thereunder; (4)
in any way violates federal trademark or copyright law or if all federal taxes due have
not been paid on the cigarettes; (5) has been modified or altered by a person other
than the manufacturer or person specifically authorized by the manufacturer, including
modification or alteration by the placement of a sticker or label to cover information,
including the wording, labels or warnings described in subdivision (1) or (2) of this
subsection, on the package; or (6) has been manufactured or sold by a tobacco product
manufacturer that is in violation of subdivision (2) of subsection (a) of section 4-28i or
section 4-28j and the distributor has been notified by the commissioner of such violation.
Notwithstanding the provisions of section 12-15, the commissioner may disclose to the
public the name of any person who has violated the provisions of section 4-28i or 4-28j.
(1949 Rev., S. 1984; P.A. 99-109, S. 1, 8; May 9 Sp. Sess. P.A. 02-7, S. 102.)
History: P.A. 99-109 designated existing provisions as Subsec. (a), making technical changes therein, and added Subsec.
(b) to prohibit stamping of cigarettes produced and labeled for export only, effective July 1, 1999; May 9 Sp. Sess. P.A.
02-7 amended Subsec. (b) to disallow stamping of cigarette packages sold by manufacturers who are in violation of the
escrow fund requirements of the interstate tobacco settlement and to authorize the publication of the names of such violators.
Sec. 12-303. Dealers to affix stamps. (a) Except as otherwise provided in subsection (b) of this section, each dealer shall, within twenty-four hours after coming into
possession of any cigarettes not bearing proper stamps evidencing payment of the tax
imposed by this chapter, and before selling such cigarettes, affix or cause to be affixed,
at the location for which such dealer's license is issued, in such manner as the commissioner may specify in regulations issued pursuant to this chapter, to each individual
package of cigarettes, stamps of the proper denomination, as required by section 12-296.
(b) No dealer shall affix, or cause to be affixed, to a package of cigarettes sold or
distributed by such dealer, stamps, if the package (1) is not labeled in conformity with
the requirements of the federal Cigarette Labeling and Advertising Act, 79 Stat. 282,
15 USC 1331 et seq., or any other federal requirement for the placement of labels,
warnings and other information, applicable to packages of cigarettes that are intended
to be sold within the United States; (2) bears any label or notice prescribed by the United
States Department of Treasury to identify cigarettes intended for export and exempt
from tax by the United States pursuant to 26 USC 5704(b), including "For export only",
"U.S. Tax-exempt", "For use outside U.S." or similar wording indicating that the manufacturer did not intend that the product be sold within the United States, including any
notice or label described in 27 CFR 290.185; (3) has been imported into the United States
after January 1, 2000, in violation of 26 USC 5754 or regulations adopted thereunder; (4)
in any way violates federal trademark or copyright law or if all federal taxes due have
not been paid on the cigarettes; (5) has been modified or altered by a person other
than the manufacturer or person specifically authorized by the manufacturer, including
modification or alteration by the placement of a sticker or label to cover information,
including the wording, labels or warnings described in subdivision (1) or (2) of this
subsection, on the package; or (6) has been manufactured or sold by a tobacco product
manufacturer that is in violation of subdivision (2) of subsection (a) of section 4-28i or
section 4-28j and the dealer has been notified by the commissioner of such violation.
Notwithstanding the provisions of section 12-15, the commissioner may disclose to the
public the name of any person who has violated the provisions of section 4-28i or 4-28j.
(1949 Rev., S. 1985; P.A. 99-109, S. 2, 8; May 9 Sp. Sess. P.A. 02-7, S. 103.)
History: P.A. 99-109 designated existing provisions as Subsec. (a), making technical changes therein, and added Subsec.
(b) to prohibit stamping of cigarettes produced and labeled for export only, effective July 1, 1999; May 9 Sp. Sess. P.A.
02-7 amended Subsec. (b) to disallow stamping of cigarette packages sold by manufacturers who are in violation of the
escrow fund requirements of the interstate tobacco settlement and to authorize the publication of the names of such violators.
Sec. 12-304. Sale of unstamped cigarettes prohibited. Penalty for violation. (a)
No distributor shall sell, and no other person shall sell, offer for sale, display for sale
or possess with intent to sell, any cigarettes (1) which do not bear stamps evidencing
the payment of the tax imposed by this chapter, or (2) the stamping of which is prohibited
by subsection (b) of section 12-302 or subsection (b) of section 12-303, provided a
licensed dealer may keep on hand, at the location for which such dealer's license is
issued, unstamped cigarettes, other than cigarettes, the stamping of which is prohibited
by subsection (b) of section 12-303, for a period not exceeding twenty-four hours. Any
unstamped cigarettes in the possession of a dealer shall be presumed to have been held
by such dealer for more than twenty-four hours unless proof is shown to the contrary.
Any person who knowingly violates any provision of this subsection shall be fined not
more than one thousand dollars or imprisoned not more than one year or both.
(b) (1) Any person, whether or not previously convicted of a violation of any provision of this section, who possesses, transports for sale, sells or offers for sale twenty
thousand or more cigarettes, (A) subject to the tax imposed by this chapter in any unstamped or unlawfully packaged stamped packages, or (B) the stamping of which is
prohibited by subsection (b) of section 12-302 or subsection (b) of section 12-303, and
(2) any person, whether or not previously convicted of violation of any provision of this
section, who wilfully attempts to evade the taxes imposed by this chapter or the payment
thereof on twenty thousand or more cigarettes, shall be fined not more than five thousand
dollars or imprisoned not less than one year nor more than five years or both.
(1949 Rev., S. 1986; 1967, P.A. 788, S. 8; P.A. 75-275, S. 1, 2; P.A. 88-314, S. 16, 54; P.A. 99-109, S. 3, 8.)
History: 1967 act imposed minimum fine of one hundred dollars for first offense; P.A. 75-275 increased fines for first
offense to minimum of two hundred fifty dollars and maximum of one thousand dollars (up from five hundred) and for
subsequent offenses increased minimum fine from two hundred to five hundred dollars and maximum fine from two
thousand dollar fine to fine and/or one year's imprisonment and added Subsec. (b) re offenses involving twenty thousand
or more cigarettes; P.A. 88-314 amended the penalty provision for violation of any requirement of this section and added
the provision that the violation must occur with knowledge, effective July 1, 1988, and applicable to any tax which first
becomes due and payable on or after said date, to any return or report due on or after said date, or in the case of any ongoing
obligation imposed in accordance with said act, to the tax period next beginning on or after said date; P.A. 99-109 amended
Subsecs. (a) and (b) to add provisions re cigarettes the stamping of which is prohibited by Sec. 12-302 or 12-303 and to
make technical changes, effective July 1, 1999.
See Sec. 12-315 re authorization for sales of unstamped cigarettes among licensed distributors.
Sec. 12-305. Unstamped cigarettes, vehicles in which transported, subject to
confiscation. All (1) unstamped cigarettes upon which taxes are imposed by this chapter,
or which are in the course of transport within this state and are not properly supported
by invoice or delivery tickets as required by section 12-306a, and (2) cigarettes, the
stamping of which is prohibited by subsection (b) of section 12-302 or subsection (b)
of section 12-303, which are in the possession, custody or control of any person for the
purpose of being consumed, sold or transported in this state, for the purpose of evading
or violating the provisions of this chapter, or with intent to avoid payment of the tax
imposed hereunder, and any automobile, truck, conveyance or other vehicle used in the
transportation of such cigarettes, and all paraphernalia, equipment or other tangible
personal property, incident to the use of such purposes, found in the place, building,
vehicle or vehicles where such cigarettes are found, are declared to be contraband goods;
and any house, building or other premises and any vehicle or other conveyance suspected
of containing such contraband goods may be searched under due process of law; and
any such contraband goods may be seized by the commissioner, agents or employees
of the commissioner, or by any peace officer of this state when directed by the commissioner to do so, without a warrant, provided nothing in this section shall be construed
to require the commissioner to confiscate unstamped cigarettes or property when the
commissioner has reason to believe that the owner thereof is not wilfully or intentionally
evading the tax imposed by this chapter. Any property seized under the provisions of
this chapter may, at the commissioner's discretion and except as otherwise provided by
this section, be offered by the commissioner for sale at public auction to the highest
bidder after advertisement, as provided in section 12-307, or the commissioner may
dispose of such property in a manner which the commissioner deems to be in the best
interest of the state. The commissioner shall deliver to the State Treasurer the proceeds
of any sale made under the provisions of this section. Before delivering any cigarettes
so sold to the purchaser, the commissioner shall require such purchaser to affix to the
packages the amount of stamps required by this chapter. The seizure and sale of any
cigarettes or other property under the provisions of this section shall not relieve any
person from a fine or other penalty for violation of this chapter. Any sale of cigarettes
by the commissioner, the stamping of which is prohibited by subsection (b) of section
12-302 or subsection (b) of section 12-303, may only be made to the manufacturer and
solely for purpose of export.
(1949 Rev., S. 1987; 1957, P.A. 524, S. 1; 1967, P.A. 788, S. 9; P.A. 99-109, S. 4, 8; P.A. 00-230, S. 4.)
History: 1967 act authorized commissioner to dispose of property in manner he deems will best serve interest of state;
Effect of P.A. 77-614 was to make "commissioner" refer to commissioner of revenue services rather than tax commissioner,
effective January 1, 1979; P.A. 99-109 added provisions re cigarettes the stamping of which is prohibited by Sec. 12-302
or 12-303 and made technical changes, effective July 1, 1999; P.A. 00-230 made a technical change.
Sec. 12-306. Invoices or delivery tickets required in transportation of unstamped cigarettes. Section 12-306 is repealed.
(1957, P.A. 524, S. 2; 1967, P.A. 788, S. 10.)
Sec. 12-306a. Cigarette transporter to hold invoices or delivery tickets. Every
person who transports cigarettes not bearing Connecticut cigarette stamps upon the
public highways, roads or streets of this state shall have in such person's actual possession invoices or delivery tickets for such cigarettes, which shall show the true name and
address of the consignor or seller, the true name and address of the consignee or purchaser, and the quantity and brands of the cigarettes so transported. If the cigarettes are
consigned to or purchased by any person in Connecticut, such purchaser or consignee
shall be authorized by this chapter to possess unstamped cigarettes in this state and the
stamping of such cigarettes shall not be prohibited by subsection (b) of section 12-302
or subsection (b) of section 12-303. If the invoices or delivery tickets specify that the
cigarettes are to be delivered to any person in any other state or jurisdiction such person
shall be authorized by the laws of such other state or jurisdiction to receive or possess
cigarettes on which the taxes imposed by such other state or jurisdiction have not been
paid and the stamping of such cigarettes shall not be prohibited by the laws of such other
state or jurisdiction. In the absence of such invoices or delivery tickets, or, if the name
or address of the consignee or purchaser is falsified or if the purchaser or consignee is
not authorized to possess unstamped cigarettes, the cigarettes so transported shall be
deemed contraband and shall be subject to confiscation. Any transporter who violates
any provision of this section shall be fined not more than one thousand dollars or imprisoned not more than one year or both, and in addition shall be liable for the tax, interest
and penalty as provided in this chapter.
(1967, P.A. 788, S. 11; P.A. 88-314, S. 17, 54; P.A. 99-109, S. 5, 8.)
History: P.A. 88-314 amended the fine applicable to any transporter who violates any provision of this section to provide
for a fine of not more than one thousand dollars in lieu of not more than twenty-five dollars for each carton of cigarettes
transported, retaining the imprisonment provision in the penalty without change, effective July 1, 1988, and applicable to
any tax which first becomes due and payable on or after said date, to any return or report due on or after said date, or in
the case of any ongoing obligation imposed in accordance with said act, to the tax period next beginning on or after said
date; P.A. 99-109 added provisions re cigarettes the stamping of which is prohibited by Sec. 12-302 or 12-303 and made
a technical change, effective July 1, 1999.
Sec. 12-306b. Penalty for wilful failure to submit a required report or pay the
tax, or for wilful delivery of a document known to be false. (a) Any person required
under this chapter to pay any tax, or required under this chapter or by regulations adopted
in accordance with the provisions of section 12-313 to make a report, keep any records
or supply any information, who wilfully fails to pay such tax, make such report, keep
such records, or supply such information, at the time required by law or regulations,
shall, in addition to any other penalty provided by law, be fined not more than one
thousand dollars or imprisoned not more than one year or both. Notwithstanding the
provisions of section 54-193, no person shall be prosecuted for a violation of the provisions of this subsection committed on or after July 1, 1997, except within three years
next after such violation has been committed. As used in this section, person includes
any officer or employee of a corporation or a member or employee of a partnership
under a duty to pay such tax, to make such report, keep such records or supply such
information.
(b) Any person who wilfully delivers or discloses to the commissioner or his authorized agent any list, report, account, statement, or other document, known by him to be
fraudulent or false in any material matter, shall, in addition to any other penalty provided
by law, be fined not more than five thousand dollars or imprisoned not more than five
years nor less than one year or both. No person shall be charged with an offense under
both subsections (a) and (b) of this section in relation to the same tax period but such
person may be charged and prosecuted for both such offenses upon the same information.
(1967, P.A. 788, S. 12; P.A. 88-314, S. 18, 54; P.A. 97-203, S. 4, 20; P.A. 04-201, S. 9.)
History: P.A. 88-314 deleted the fine applicable to any false entry on an invoice or record, providing in lieu thereof for
a fine or imprisonment applicable to (1) any wilful failure to pay the tax or make a report at the time required or (2) any
wilful delivery of a report or other document known to be false in any material matter, effective July 1, 1988, and applicable
to any tax which first becomes due and payable on or after said date, to any return or report due on or after said date, or
in the case of any ongoing obligation imposed in accordance with said act, to the tax period next beginning on or after said
date; P.A. 97-203 amended Subsec. (a) to extend to three years the time within which persons wilfully failing to file tax
returns or pay taxes may be criminally prosecuted, effective July 1, 1997; P.A. 04-201 deleted reference to Sec. 12-293a
in Subsec. (a), effective June 3, 2004.
Sec. 12-307. Procedure on sale after confiscation. (a) When any property has
been seized under the provisions of section 12-305, the commissioner may, at his discretion, after a hearing as provided in this section, advertise such property for sale in a
newspaper published or having a circulation in the town in which the seizure took place,
at least five days before the sale.
(b) Any person claiming an interest in such property may make written application
to the commissioner for a hearing within thirty days after the date of such seizure, stating
his interest in the property and his reasons why it should not be forfeited. Upon receipt
of such application, the commissioner shall, within thirty days, assign a date for such
hearing and give written notice as to the time thereof to any person or persons making
such application. At such hearing, the commissioner shall determine whether such cigarettes should be forfeited and written notice of such determination shall be forwarded
to each applicant claiming to have an interest in such cigarettes.
(c) Any person aggrieved by any such determination may appeal therefrom to the
superior court for the judicial district of New Britain, as provided in section 12-312.
(d) No sale of any property under the provisions of section 12-305 shall be made
while an application for a hearing is pending before the commissioner, but the pendency
of an appeal under the provisions of section 12-312 shall not prevent the sale unless the
appellant posts a satisfactory bond, with surety, in an amount double the estimated value
of the property, conditioned upon the successful termination of the appeal.
(e) When any such sale has been consummated, the proceeds thereof shall become
the property of the state, provided any person who has an interest in such property shall
have the same rights with respect to the proceeds of such sale as such person had in
relation to such property prior to sale.
(1949 Rev., S. 1988; 1957, P.A. 524, S. 3; P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; P.A. 95-65, S. 1, 3; 95-220, S. 4-6; P.A. 99-215, S. 24, 29.)
History: P.A. 95-65 divided the section into Subsecs. (a) to (e), added provision in Subsec. (b) re the commissioner's
responsibilities when unstamped cigarettes are seized, added provision as Subsec. (c) re appeals to the Superior Court and
added provisions as Subsec. (e) establishing a time for a person whose cigarettes are seized to apply for a hearing, effective
July 1, 1995 (Revisor's note: P.A. 88-230, 90-98, 93-142 and 95-220 authorized substitution of "judicial district of Hartford"
for "judicial district of Hartford-New Britain" in 1995 public and special acts, effective September 1, 1998); P.A. 99-215
replaced "judicial district of Hartford" with "judicial district of New Britain" in Subsec. (c), effective June 29, 1999.
Sec. 12-308. Fraudulent stamps. Any person who fraudulently makes or utters
or forges or counterfeits any stamp prescribed by the Commissioner of Revenue Services
under the provisions of this chapter, or who causes or procures the same to be done, or
who wilfully utters, publishes, passes or renders as true any false, altered, forged or
counterfeited stamp, or who knowingly possesses any such false, altered, forged or
counterfeited stamp, or who uses more than once any stamp provided for and required
by this chapter, for the purpose of evading the tax hereby imposed, or who tampers with
or causes to be tampered with any metering machine authorized to be used under the
provisions of this chapter, shall be fined not more than five thousand dollars or imprisoned not more than ten years nor less than one year or both.
(1949 Rev., S. 1989; P.A. 77-614, S. 139, 610; P.A. 88-314, S. 19, 54.)
History: P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979;
P.A. 88-314 deleted statement in which a person is deemed guilty of a felony for any fraudulent act related to cigarette tax
stamps and substituted in lieu thereof a fine of not more than five thousand dollars or imprisonment for more than five
years or less than one year, or both fine and imprisonment, effective July 1, 1988, and applicable to any tax which first
becomes due and payable on or after said date, to any return or report due on or after said date, or in the case of any ongoing
obligation imposed in accordance with said act, to the tax period next beginning on or after said date.
Sec. 12-309. Taxpayers to keep records; commissioner may examine. Assessment of tax deficiency. Penalty and interest for failure to pay tax when due. Lien
against real estate for state tax. Foreclosure procedure. (a) Each distributor and
each dealer shall keep complete and accurate records of all cigarettes manufactured,
produced, purchased and sold. Such records shall be of such kind and in such form as
the Commissioner of Revenue Services may prescribe and shall be safely preserved for
three years in such manner as to insure permanency and accessibility for inspection by
the commissioner and his authorized agents. The commissioner and his authorized
agents may examine the books, papers and records of any distributor or dealer in this
state for the purpose of determining whether the tax imposed by this chapter has been
fully paid, and may investigate and examine the stock of cigarettes in or upon any
premises where such cigarettes are possessed, stored or sold for the purpose of determining whether the provisions of this chapter are being obeyed. If, after an examination of
the invoices, books and records of a licensed distributor or dealer, or if, from any other
information obtained by him or his authorized agents, the commissioner determines that
the report of any licensed distributor or licensed dealer is incorrect, and that the licensed
distributor or licensed dealer has not purchased sufficient stamps to cover his receipts
and sales or other disposition of unstamped cigarettes, he shall thereupon assess the
deficiency in tax. Such amount shall bear interest at the rate of one per cent per month
or fraction thereof from the date when the original tax was due and payable. In any case
where a licensed distributor or licensed dealer cannot produce evidence of sufficient
stamp purchases to cover the receipt of unstamped cigarettes, it shall be presumed that
such cigarettes were sold without having the proper stamps affixed. When it appears
that any part of the deficiency for which a deficiency assessment is made is due to
negligence or intentional disregard of the provisions of this chapter or regulations promulgated thereunder, there shall be imposed a penalty equal to ten per cent of the amount
of such deficiency assessment, or fifty dollars, whichever is greater. When it appears
that any part of the deficiency for which a deficiency assessment is made is due to fraud
or intent to evade the provisions of this chapter or regulations promulgated thereunder,
there shall be imposed a penalty equal to twenty-five per cent of the amount of such
deficiency assessment. No taxpayer shall be subject to more than one penalty under this
subsection in relation to the same tax period. The amount of any tax, penalty or interest
due and unpaid under the provisions of this chapter may be collected under the provisions
of section 12-35. The warrant therein provided for shall be signed by the commissioner
or his authorized agent. The amount of any such tax, penalty and interest shall be a lien,
from the last day of the month next preceding the due date of such tax until discharged
by payment, against all real estate of the taxpayer within the state, and a certificate of
such lien signed by the commissioner may be filed for record in the office of the clerk
of any town in which such real estate is situated, provided no such lien shall be effective
as against any bona fide purchaser or qualified encumbrancer of any interest in any
such property. When any tax with respect to which a lien has been recorded under the
provisions of this section has been satisfied, the commissioner, upon request of any
interested party, shall issue a certificate discharging such lien, which certificate shall
be recorded in the same office in which the lien is recorded. Any action for the foreclosure
of such lien shall be brought by the Attorney General in the name of the state in the
superior court for the judicial district in which the property subject to such lien is situated,
or, if such property is located in two or more judicial districts, in the superior court for
any one such judicial district, and the court may limit the time for redemption or order
the sale of such property or make such other or further decree as it judges equitable.
(b) Except in the case of a wilfully false or fraudulent return with intent to evade
the tax, no assessment of additional tax with respect to any return shall be made after
the expiration of more than three years from the date of the filing of such return or from
the original due date of such return, whichever is later. If no return has been filed as
provided in this chapter, the commissioner may make such return at any time thereafter,
according to the best information obtainable and according to the form prescribed. To
the tax imposed upon the basis of such return, there shall be added an amount equal to
ten per cent of such tax, or fifty dollars, whichever is greater. The tax shall bear interest
at the rate of one per cent per month or fraction thereof from the due date of such tax
to the date of payment. If prior to the expiration of the period prescribed in this section
for the assessment of additional tax, a taxpayer has consented in writing that such period
may be extended, the amount of such additional tax due may be determined at any time
within such extended period. Any such extended period may be further extended by
consent in writing before the expiration of such extended period.
(1949 Rev., S. 1990; 1967, P.A. 788, S. 13; P.A. 76-322, S. 8, 27; P.A. 77-614, S. 139, 610; P.A. 78-245, S. 1, 2; 78-303, S. 85, 136; P.A. 79-631, S. 43, 111; P.A. 80-307, S. 12, 31; P.A. 81-411, S. 20, 42; P.A. 82-172, S. 6, 14; P.A. 88-314, S. 20, 54; May Sp. Sess. P.A. 94-4, S. 55, 85; P.A. 95-26, S. 10, 52; P.A. 95-160, S. 64, 69.)
History: 1967 act added provisions for actions taken by commissioner when stamps bought are discovered to be insufficient to cover actual sales; P.A. 76-322 increased interest rate from one-half of one per cent to one per cent except if there
was fraudulent intent where additional penalty interest remained at one-half of one per cent; P.A. 77-614 and P.A. 78-303
substituted commissioner of revenue services for tax commissioner, effective January 1, 1979; P.A. 78-245 increased
penalty interest for fraudulent intent to one per cent and added Subsec. (b) re three-year limit for assessment of additional
tax; P.A. 79-631 made technical changes; P.A. 80-307 temporarily increased interest rates to one and one-fourth per cent
for taxes due on or after July 1, 1980, but not later than June 30, 1981; P.A. 81-411 continued interest on delinquent taxes