Tax - General (GTG) — Title 12. Tobacco Tax

located outside the State that sells, holds for sale, ships, or delivers premium cigars or pipe tobacco to consumers in the State if, during the previous calendar year or the current calendar year:

who is required to hold a remote tobacco seller license under Title 16.9 of the Business Regulation Article.

Except as provided in paragraph (2) of this subsection, a county, municipal corporation, special taxing district, or other political subdivision of the State may not impose a tax on cigarettes, other tobacco products, or electronic smoking devices as defined under § 16.7–101 of the Business Regulation Article.

If a county imposed a tax on electronic smoking devices on January 1, 2020, the county may continue to impose a tax on electronic smoking devices at the same rate that was in effect on January 1, 2020.

are possessed or sold in the State in a manner that is not authorized under this title or under Title 16, Title 16.5, or Title 16.9 of the Business Regulation Article; or

are transported by vehicle in the State by a person who does not have, in the vehicle, the records required by § 16–219 or § 16.5–215 of the Business Regulation Article for the transportation of cigarettes or other tobacco products.

cigarettes that a licensed wholesaler under Title 16 of the Business Regulation Article is holding for sale outside the State or to a United States armed forces exchange or commissary;

other tobacco products that an other tobacco products wholesaler licensed under Title 16.5 of the Business Regulation Article is holding for sale outside the State or to a United States armed forces exchange or commissary; or

cigarettes or other tobacco products that:

$5.00 for each package of 20 cigarettes; and

25 cents for each cigarette in a package of more than 20 cigarettes.

Except as provided in paragraph (2) of this subsection, the tobacco tax rate for other tobacco products is 60% of the wholesale price of the tobacco products.

For premium cigars and pipe tobacco sold by an out–of–state seller, the tobacco tax rate applies to:

The Comptroller shall adopt regulations to implement this subsection.

on or before the 15th day of the month that follows the month in which the manufacturer distributes in the State free sample cigarettes of the manufacturer; and

if the Comptroller so specifies, by regulation, on other dates for each month in which the manufacturer does not distribute any sample cigarettes.

for cigarettes:

for other tobacco products, on or before the 21st day of the month that follows the month in which the wholesaler has possession of other tobacco products on which the tobacco tax has not been paid.

keep an invoice for each purchase of tax stamps;

maintain a daily record of the tax stamps affixed to cigarette packages; and

maintain a complete and accurate record of each sale of cigarettes or other tobacco products for resale outside of the State.

keep the records required under subsection (a) of this section for a period of 6 years or for a shorter period that the Comptroller authorizes; and

allow the Comptroller or the Executive Director to examine the records.

require an out–of–state seller to maintain records of the cost of premium cigars and pipe tobacco acquired for sale into the State; and

specify the period for which an out–of–state seller must maintain the records required under item (1) of this subsection.

A licensed other tobacco products retailer or a licensed tobacconist shall pay the tobacco tax on other tobacco products on which the tobacco tax has not been paid by filing a quarterly tax return, with any supporting schedules, on forms provided by the Comptroller on the following dates covering tax liabilities in the preceding quarter:

A licensed other tobacco products retailer or a licensed tobacconist required to file a tax return under paragraph (1) of this subsection shall pay a tobacco tax at the rate provided in § 12–105(b) of this title based on the invoice amount charged by the licensed other tobacco products manufacturer, exclusive of any discount, trade allowance, rebate, or other reduction.

An out–of–state seller shall pay the tobacco tax on pipe tobacco or premium cigars on which the tobacco tax has not been paid.

An out–of–state seller shall pay the tobacco tax on pipe tobacco and premium cigars by filing a tax return, with any supporting schedules, on forms provided by the Comptroller:

For the period that the return covers, the return shall state:

A licensed wholesaler may buy tax stamps, in the manner and at the time that the Comptroller requires by regulation.

Tax stamps may not be bought from a person other than the Comptroller unless the buyer:

the package contains sample cigarettes that are not for sale; and

all applicable tobacco taxes on those cigarettes have been paid.

Except as provided in subsection (c) of this section, within 72 hours after receiving cigarettes in the State and before selling or attempting to sell the cigarettes, a licensed wholesaler who first possesses the cigarettes shall affix, to the smallest cigarette package, tax stamps:

If a tax stamp has been affixed to a package of cigarettes, a person may not affix the same tax stamp to another package of cigarettes.

sample cigarettes if the cigarette package is marked in accordance with subsection (a) of this section; or

cigarettes that are segregated or marked to indicate that the cigarettes:

Except as provided in subsection (c)(2) of this section, a rebuttable presumption exists that any unstamped cigarettes in the possession of a licensed wholesaler are possessed in violation of this title.

The licensed wholesaler who possesses unstamped cigarettes has the burden of proving that the cigarettes are not possessed in violation of this title.