Subtitle 27 – Tobacco Tax

In this subtitle, the following terms have the meanings indicated.

“Cigarette” has the meaning stated in § 12-101(b) of the State Tax-General Article.

“Director” means the Director of Finance or a designee of the Director of Finance.

“Distributor” means:

“Pipe tobacco” means any tobacco that, because of its appearance, type, packaging, or labeling, is suitable or intended to be smoked in a pipe.

“Smokeless tobacco” means any chewing tobacco, spit tobacco, snuff, or other finely cut, ground, powdered, or leaf tobacco that is:

cigar;

pipe tobacco; or

smokeless tobacco.

The amount of the tax imposed is as specified in this section.

For cigars, the tax is: <table class="layout-table"> <tbody> <tr> <td> <p class="text-indent-2">(1) for cigars weighing 3 pounds or less per 1,000:</p> </td> <td> <p>$0.03 per cigar</p> </td> </tr> <tr> <td> <p class="text-indent-2">(2) for cigars weighing more than 3 pounds per 1,000:</p> </td> <td> <p>$0.06 per cigar</p> </td> </tr> </tbody> </table>

For pipe tobacco, the tax is: <table class="layout-table"> <tbody> <tr> <td> <p class="text-indent-2">(1) for each package of 1.5 ounces or less:</p> </td> <td> <p>$0.36</p> </td> </tr> <tr> <td> <p class="text-indent-2">(2)for each package of more than 1.5 ounces:</p> </td> <td> <p>$0.36 per unit or fraction of a unit of 1.5 ounces</p> </td> </tr> </tbody> </table>

For smokeless tobacco, the tax is: <table class="layout-table"> <tbody> <tr> <td> <p class="text-indent-2">(1) for each package of 1.5 ounces or less:</p> </td> <td> <p>$0.36</p> </td> </tr> <tr> <td> <p class="text-indent-2">(2) for each package of more than 1.5 ounces:</p> </td> <td> <p>$0.36 per unit or fraction of a unit of 1.5 ounces</p> </td> </tr> </tbody> </table>

The tax imposed by this subtitle:

If any dealer transports tobacco products into the City or causes tobacco products to be transported into the City, the dealer is liable for the payment of the tax imposed by this subtitle, together with all applicable interest and penalties, unless the dealer obtains from the supplier of the products a written certification that the supplier is liable for and is paying the tax.

The certification must be in a form the Director approves.

keep complete and accurate records of all transactions involving tobacco products, as necessary or otherwise required by the Director to determine whether all taxes due under this subtitle have been paid; and

make these records available, at all times during business hours, for inspection and audit by the Director.

interest at the rate of 1% for each month or fraction of a month that the tax is overdue; and

a penalty of 10% of the amount of the tax due.

If any person fails to make the report and remit the tax when due and fails to keep suitable records as required under this subtitle, the Director of Finance may attempt to obtain other available information on which to base an estimate of the tax due.

As soon as the Director obtains this information, the Director may proceed to determine the tax due and assess that tax, plus interest and penalties, against the person liable for the tax.

any tax payable under this subtitle becomes immediately due and payable; and

within 3 days of the sale or other cessation of business, that person must submit the required report and remit the total amount of the tax due.

govern the payment, collection, and accounting of the tax imposed by this subtitle;

define any terms used in connection with the imposition and collection of the tax imposed under this subtitle;

provide for the credit of any tax paid on returned products;

provide for the refund of any tax, interest, or penalty erroneously or illegally paid; and

otherwise administer, enforce, and carry out this subtitle.