In this subtitle, the following terms have the meanings indicated. “Cigar” means any cigar, cheroot, stogie, cigarillo, or other roll of tobacco that is wrapped in leaf tobacco or in any other substance that contains tobacco. “Cigar” does not include a cigarette. “Cigarette” has the meaning stated in § 12-101(b) of the State Tax-General Article. “Dealer” means any person who engages in the retail sale of tobacco products subject to this subtitle. “Dealer” includes:any distributor engaged in casual retail sales of tobacco products; any operator of a vending machine from which tobacco products are sold; and individual outlets in the City of multiple-outlet retail chain stores. “Director” means the Director of Finance or a designee of the Director of Finance. “Distributor” means:any person who supplies tobacco products to a dealer; any person who supplies vending machines with tobacco products; and any multiple-outlet retail chain store that supplies tobacco products to its individual outlets. “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:intended to be placed in the oral cavity or nasal passage; or otherwise not intended to be smoked. “Supply” means to provide, furnish, deliver, distribute, or transmit. For purposes of this subtitle, the act of supplying tobacco products to a dealer operating in the City is completed, and tax liability accrues, on receipt of the products by the dealer in the City. “Tobacco product” means any:cigar; pipe tobacco; or smokeless tobacco. “Tobacco product” does not include a cigarette. City Code, 1976/83, art. 28, §92 Ord. 99-388 Ord. 22-124

A tax is imposed on every distributor who supplies to a dealer operating in the City any: cigar; pipe tobacco; or smokeless tobacco. City Code, 1976/83, art. 28, §93 Ord. 99-388

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> City Code, 1976/83, art. 28, §94 Ord. 99-388

The tax imposed by this subtitle:is due when the dealer receives the tobacco product; and must be paid on or before the 25^th day of the month following the month in which the dealer received the product. The distributor must remit the tax to the Director of Finance, together with a monthly report of all tobacco products that the distributor supplied to dealers operating in the City. The report must:be in a form the Director approves; and identify the number of products supplied in each of the classifications specified in <cite data-path="|28|§27-3">§ 27-3 of this subtitle</cite>. City Code, 1976/83, art. 28, §95 Ord. 99-388

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. City Code, 1976/83, art. 28, §96 Ord. 99-388

Every distributor and every dealer must: 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. City Code, 1976/83, art. 28, §97 Ord. 99-388

If a distributor fails to pay the tax imposed by this subtitle when due, the distributor must pay the Director, in addition to the tax due: 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. City Code, 1976/83, art. 28, §98 Ord. 99-388

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. The Director may then notify the person by mail, sent to that person’s last known address, of the total amount of the tax, interest, and penalties. The total amount is payable within 10 days from the date of this notice. City Code, 1976/83, art. 28, §99 Ord. 99-388

If a person required to pay a tax under this subtitle sells his, her, or its business or otherwise ceases to do business: 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. City Code, 1976/83, art. 28, §100 Ord. 99-388

The tax, interest, and penalties imposed by this subtitle are a lien on the property of any person liable for their payment. City Code, 1976/83, art. 28, §101 Ord. 99-388

Subject to Title 4 {“Administrative Procedure Act – Regulations”} of the <cite data-path="|general">City General Provisions Article</cite>, Director may adopt rules and regulations as necessary or appropriate to: 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. City Code, 1976/83, art. 28, §102 Ord. 99-388 Text Conformed 02/25/21 By authority of Ordinance 20-431, Section 5, the Director of Legislative Reference, in consultation with the Law Department, has conformed this section to refer expressly to and reflect the requirements of the recently-enacted Administrative Procedure Act that, effective January 15, 2021, governs the proposal, adoption, and publication of administrative rules and regulations.

Any person who violates any provision of this subtitle or of any rule or regulation adopted under this subtitle is guilty of a misdemeanor and, on conviction, is subject to a fine of not more than $1,000 or to imprisonment for not more than 12 months or to both fine and imprisonment for each offense. City Code, 1976/83, art. 28, §103 Ord. 99-388