In this title the following words have the meanings indicated. “Cigarette” means any size or shaped roll for smoking that is made of tobacco or tobacco mixed with another ingredient and wrapped in paper or in any other material except tobacco. “Manufacturer” means a person who acts as a manufacturer as defined in § 16–201 of the Business Regulation Article or as an other tobacco products manufacturer as defined in § 16.5–101 of the Business Regulation Article. “Other tobacco product” has the meaning stated for “other tobacco products” in § 16.5–101 of the Business Regulation Article. “Other tobacco products retailer” means a person authorized under § 16.5–205(b) of the Business Regulation Article to purchase other tobacco products on which the tobacco tax has not been paid. “Out–of–state seller” means a person: 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: the person’s gross revenue from the sale of premium cigars or pipe tobacco in the State exceeds $100,000; or the person sold premium cigars or pipe tobacco into the State in 200 or more separate transactions; and who is required to hold a remote tobacco seller license under Title 16.9 of the Business Regulation Article. “Pipe tobacco” has the meaning stated in § 16.5–101 of the Business Regulation Article. “Premium cigars” has the meaning stated in § 16.5–101 of the Business Regulation Article. “Sell” means to exchange or transfer, or to make an agreement to exchange or transfer, title or possession of property, in any manner or by any means, for consideration. “Tax stamp” means a device in the design and denomination that the Comptroller authorizes by regulation for the purpose of being affixed to a package of cigarettes as evidence that the tobacco tax is paid. “Tobacconist” means a person authorized under § 16.5–205(e) of the Business Regulation Article to purchase other tobacco products on which the tobacco tax has not been paid. “Unstamped cigarettes” means a package of cigarettes to which tax stamps are not affixed in the amount and manner required in § 12–304 of this title. “Wholesale price” means the price for which a wholesaler buys other tobacco products, exclusive of any discount, trade allowance, rebate, or other reduction. “Wholesaler” means, unless the context requires otherwise, a person who acts as a wholesaler as defined in § 16–201 of the Business Regulation Article or as an other tobacco products wholesaler as defined in § 16.5–101 of the Business Regulation Article.

Except as provided in § 12–104 of this subtitle, a tax is imposed on cigarettes and other tobacco products in the State. 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.

A rebuttable presumption exists that any cigarette or other tobacco product in the State is subject to the tobacco tax. Cigarettes or other tobacco products are contraband tobacco products if they: 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. A person who possesses cigarettes or other tobacco products has the burden of proving that the cigarettes or other tobacco products are not subject to the tobacco tax.

“Consumer” means a person who possesses cigarettes or other tobacco products for a purpose other than selling or transporting the cigarettes or other tobacco products. The tobacco tax does not apply to: 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: a consumer brings into the State: if the quantity brought from another state does not exceed other tobacco products having a retail value of $100 or 5 cartons of cigarettes; or if the quantity brought from a United States armed forces installation or reservation does not exceed other tobacco products having a retail value of $100 or 5 cartons of cigarettes; a person is transporting by vehicle in the State if the person has, 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; or are held in storage in a licensed storage warehouse on behalf of a licensed cigarette manufacturer or an other tobacco products manufacturer.

The tobacco tax rate for cigarettes is: $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. In this paragraph, “pipe tobacco” and “premium cigars” have the meanings stated in § 16.5–101 of the Business Regulation Article. Except as provided in subsubparagraph 2 of this subparagraph, the tobacco tax rate for cigars is 70% of the wholesale price of the cigars. The tobacco tax rate for premium cigars is 15% of: the wholesale price of the premium cigars; or for premium cigars sold by an out–of–state seller, the price determined under subsection (c) of this section. The tobacco tax rate for pipe tobacco is 30% of: the wholesale price of the pipe tobacco; or for pipe tobacco sold by an out–of–state seller, the price determined under subsection (c) of this section. For premium cigars and pipe tobacco sold by an out–of–state seller, the tobacco tax rate applies to: the actual price paid by an out–of–state seller for a stock keeping unit; or if the actual price paid by an out–of–state seller for a stock keeping unit is not available, the average of the actual price paid by an out–of–state seller for a stock keeping unit over the 12 calendar months before January 1 of the year in which the sale occurs. The Comptroller shall adopt regulations to implement this subsection.