Title 03 — Subtitle 02. Alcohol and Tobacco Tax

The consignor is the holder of a nonresident dealer's permit issued by the Alcohol and Tobacco Commission;

The permittee has furnished the Comptroller a suitable security;

All required beer taxes have been prepaid as provided in this regulation; and

All applicable provisions of Alcoholic Beverages Article and Tax-General Article, Annotated Code of Maryland, have been met.

Prepayment of Maryland beer tax by the holder of a nonresident dealer's permit shall be evidenced by certificates issued by the Comptroller.

Before consigning any beer into the State for consumption in the State, each holder of a nonresident dealer's permit shall obtain from the Comptroller a certificate denoting prepayment of the Maryland beer tax. The prepayment shall be in an amount equivalent to the Maryland beer tax paid by the holder of the nonresident dealer's permit for the total number of gallons of beer delivered during the immediate preceding months of July and August, provided, however, that if deliveries were not made in either or both of these months, or if the Comptroller shall find that the prepayment so computed is inadequate or excessive, the Comptroller shall determine the amount of the prepayment to be made before the issuance of the certificate. However, prepayment of the beer tax may not be required of a holder of a nonresident dealer's permit covering consignments to Classes E, F, and G licensees, or to the holder of a Maryland manufacturer's license. The beer tax on beer brewed outside the United States, unless prepaid as provided in this regulation, shall be prepaid through the acquisition of a tax prepayment certificate obtained from the Comptroller covering each individual order before delivery within this State.

Not later than the 15th day of each month, all nonresident dealers authorized to sell beer to Maryland licensed wholesalers shall file a complete and accurate beer tax return with the Comptroller covering all dispositions of beer into this State during the preceding calendar month. This return shall be accompanied by cash remittance covering the beer tax computed on it, less a deduction for taxes paid on dispositions of beer upon which the beer tax has been prepaid pursuant to §B(2) of this regulation on an individual order basis.

The Comptroller may at any time increase or decrease the amount of any prepayment of the beer tax made pursuant to §B(1), above, if it is found by the Comptroller that the amount of the prepayment is inadequate or excessive. If a nonresident dealer is required to increase the amount of beer tax prepayment, that nonresident dealer may not consign any additional amounts of beer into the State until a supplemental prepayment certificate has been issued denoting the additional prepayment of beer tax.

If the permit of a nonresident dealer expires, is surrendered, or is cancelled, the nonresident dealer may file a refund claim together with the original beer tax prepayment certificates with the Comptroller for the amount of the outstanding beer tax prepayment certificates. When the Comptroller is satisfied that all beer tax due under the Tax-General Article has been paid, together with any and all interest and penalties, the Comptroller may refund to the nonresident dealer any beer tax prepayment remaining.

Every nonresident dealer engaged in the business of selling or delivering beer for consumption within this State shall file with the Comptroller a continuing security in the minimum penalty of $5,000. This security shall be in such form as required by Tax-General Article, §13-826, and shall be conditioned upon the payment of all taxes, penalties, and interest imposed by the Tax-General Article upon the sale or delivery of beer.

Securities filed under this Regulation shall be governed by the provisions of Tax-General Article, §§13-827—13-831.

The licensee is obligated to and delivers the alcoholic beverages to a licensed common carrier for transportation outside this State to the authorized purchaser;

The delivery to the regular place of business of the authorized purchaser actually is made by a vehicle owned by the licensee and regularly used by the licensee in the conduct of business; or

The delivery is made by contract carrier, previously approved by the Comptroller, to the regular place of business of the authorized purchaser.

Deliver the cigarettes outside Maryland in the licensee's vehicle;

Deliver the cigarettes to a common carrier for shipment outside of Maryland; or

In the case of cigarettes destined for transport and sale out of State, deliver cigarettes bearing Maryland tax stamps or tax stamps of the jurisdiction in which they will be resold.

Take a monthly inventory at the beginning of business on the first day of each month or at the close of business on the last day of each month of all cigarettes on the premises. Any distributor who finds it impractical to take inventory on these dates shall notify the Comptroller of another specific date on which inventory will be taken. Inventories shall exclude cigarettes:

Obtain invoices covering all purchases of cigarettes whether tax stamped or unstamped.

Maintain a daily receiving record of cigarettes which includes the following:

Prepare an invoice for every sale of cigarettes which includes:

Retain invoices covering all purchases of Maryland cigarette tax stamps.

Maintain a daily record of tax stamps affixed to cigarettes.

Maintain a record of names and addresses of all retailers to whom cigarettes are sold.

Prepare credit memoranda with the date the following transactions were completed:

Prepare memoranda providing details of the exchange of fresh cigarettes for stale cigarettes for factory representatives indicating:

Name and address of wholesaler;

Name and address of purchaser; and

Quantity and brands of cigarettes.

Date of sale;

Name and address of exchange; and

Quantity and brands sold.

Tax stamps may be purchased for:

Tax stamp payments are due for:

Approved cigarette tax credits used when purchasing cigarette tax stamps shall be presented at the time the purchase order for cigarette tax stamps is placed with the Comptroller.

If any licensed wholesaler who purchases cigarette tax stamps on credit fails to remit full payment for accumulated cigarette tax stamps purchased on credit by the due date, the credit privileges may be suspended or revoked by the Comptroller.

Tobacco tax laws of Maryland for the past 5 years; and

Conditions of any bond or other security filed with the Comptroller pursuant to Tax-General Article, §13-825, Annotated Code of Maryland.

Failure to be in continuous compliance with the tobacco tax laws;

Failure to pay any tobacco tax or assessment when due;

Failure to file a tobacco tax return or report when due; or

For other good and sufficient reasons.

The Comptroller shall notify the applicant in a timely fashion of the approval or rejection of the security exemption.

If approved, the amount of the maximum credit limit based on the past 5 years experience of the wholesaler shall be established.

If, after an exemption has been approved, a licensee's need to purchase tax stamps is in an amount that exceeds the maximum credit limit, the licensee may apply for an additional exemption from filing a security in accordance with §E of this regulation.

File monthly returns containing schedules showing each delivery outside Maryland;

Segregate unstamped cigarettes for sale outside Maryland from other inventory; and

Mark unstamped cigarettes for sale outside Maryland.

Holders of a manufacturer's or a wholesaler's license authorized to sell beer, wine, or liquor, or Class E, F, or G license holders authorized to sell beer, wine, or liquor, or holders of a nonresident dealer permit authorized to sell beer shall file a tax return with the Revenue Administration Division on forms prescribed by the Comptroller for each month that their license or permit is active. A tax return is required for each period even if the licensee or permittee had no activity. Manufacturers and wholesalers shall file a beer, wine, or liquor tax return under a filing frequency provided in §A(4) of this regulation. Nonresident dealers shall file a beer tax return by the 15th of the month following the report month. Class E, F, and G licensees shall file the appropriate tax return by the 25th of the month following the report month.

Holders of an import-export, nonresident storage, or a public storage permit shall file a report with the Revenue Administration Division on forms prescribed by the Comptroller for each month that their permit is active. A report is required for each month even if the permittee had no activity. Import-export, nonresident storage, and public storage reports are due by the 15th of the month following the report month.

Family beer and wine facility permit holders shall file a report with the Revenue Administration Division on forms prescribed by the Comptroller for each year that the permit is active. A family beer and wine facility permit report is required for each report year beginning October 1 and ending September 30 of the following year. Reports are due by October 15 following the report year, and shall be filed even if the permittee had no activity for that year.

Filing frequency for Manufacturers and Wholesalers of Beer, Wine or Liquor.

A holder of a nonresident winery, distillery, and brewery permit authorized to sell wine, distilled spirits, or beer shall file a tax return with the Revenue Administration Division on forms prescribed by the Comptroller for each month that the holder's permit is active. A tax return is required for each month even if the permittee had no activity. A nonresident permit holder shall file a tax return by the 10th of the month following the report month.

A manufacturer of cigarettes shall file a tobacco tax return with the Revenue Administration Division on forms prescribed by the Comptroller, listing all sample cigarettes distributed within the State. A tobacco tax return is required for each month even if the manufacturer did not distribute sample cigarettes in this State. Sample cigarettes shipped into Maryland during the report month by a third party (advertising agency, etc.), on behalf of a manufacturer, shall be reported by the manufacturer. Sample cigarettes shipped to federal reservations in Maryland need not be reported. However, complete and accurate records of these shipments shall be maintained on the manufacturer's premises and shall be subject to audit verification. Manufacturers shall file returns by the 15th of the month following the report month.

Licensed cigarette wholesalers shall file a tobacco tax return with the Revenue Administration Division on forms prescribed by the Comptroller for all months that their license is active. A tobacco tax return is required for each month even if the licensee did not take the first possession of any unstamped cigarettes in this State. Licensees shall file returns by the 21st of the month following the report month.

Each retail alcoholic beverage license-issuing authority shall file on a monthly basis a report with the Comptroller, on forms provided or approved by the Comptroller, listing all retail alcoholic beverage license activity, including issuances, cancellations, transfers, revocations, etc., for the report month. Each issuing authority shall file the monthly report with the Comptroller by the 15th of the month following the report month. Reports are due even if there is no activity.

Each alcoholic beverage license-issuing authority shall file annually a complete report of all retail alcoholic beverage licenses renewed for the year on forms provided or approved by the Comptroller. This annual report shall be filed by the 15th of the month following the month the licenses are renewed.

Reports filed by the alcoholic beverage license-issuing authority shall include the names of licensees, entity name and trade name, address, and any other information the Comptroller may require. The Comptroller may adopt a Statewide control number to be used by the alcoholic beverage license-issuing authority when filing reports.

Each alcoholic beverage license-issuing authority shall file annually a complete report of all revenue derived for the year preceding from retail alcoholic beverage licenses, on forms provided or approved by the Comptroller. This annual report shall be filed by August 15 annually.