The cigarette tax stamps to evidence the tobacco tax imposed by Tax-General Article, §12-102, shall be purchased from the Comptroller. Cigarette tax stamps shall be purchased by presenting a requisition to the Comptroller on forms and in a manner required by the Comptroller. A person may not purchase cigarette tax stamps from any person other than the Comptroller unless the purchaser has obtained written permission from the Comptroller. A wholesaler or subwholesaler in the State who sells cigarettes to an out-of-State wholesaler or retailer for resale to out-of-State consumers shall: 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. A Maryland wholesaler or subwholesaler who delivers in Maryland to an out-of-State wholesaler, subwholesaler, or retailer any cigarettes which do not bear Maryland tax stamps, tax stamps of the state or district in which they will be resold, or does not impose a cigarette tax will be held liable for the Maryland tobacco tax. Wholesalers who make deliveries as described in §A shall keep complete and accurate records of these deliveries. Reports of these deliveries shall be made on schedules attached to monthly reports. The tax shall be assessed and collected by the Comptroller from the wholesaler in the absence of complete and accurate records of deliveries. Each licensee shall: 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: In vending machines; and Transferred to retail stock on written memorandum. Obtain invoices covering all purchases of cigarettes whether tax stamped or unstamped. Maintain a daily receiving record of cigarettes which includes the following: Date; Invoice number; Quantity; Brand; and Supplier name. Prepare an invoice for every sale of cigarettes which includes: Name and address of the purchaser; and Amount of cigarettes purchased. 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: Cigarettes returned by customers to wholesale stock; and Unstamped and tax stamped cigarettes returned to manufacturers. Prepare memoranda providing details of the exchange of fresh cigarettes for stale cigarettes for factory representatives indicating: The name and address of the factory representative; and The company represented. A wholesaler who prepares a written memo when removing cigarettes from wholesale stock for retail sales is not required to prepare a retail invoice. When deliveries of unstamped cigarettes are made to an armed forces exchange or commissary, the person making the delivery shall possess an invoice with the following: Name and address of wholesaler; Name and address of purchaser; and Quantity and brands of cigarettes. Unstamped cigarettes shall be subject to confiscation if the conditions of §A are not met. Wholesalers selling unstamped cigarettes in §A shall file the form required by the Comptroller with the following: Date of sale; Name and address of exchange; and Quantity and brands sold. Purchases, Payments, and Tax Credits. Tax stamps may be purchased for: Cash; Approved credit up to 95 percent of the face amount of the security filed with and approved by the Comptroller as required by Tax-General Article, §13-825, Annotated Code of Maryland; and Cigarette tax credits issued by the Comptroller. Tax stamp payments are due for: Cash sales at the time of purchase; and Credit sales made during the month with the cigarette tax return due by the 21st of the month following the report month. 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. The Comptroller may exempt a licensed wholesaler from posting a security when the wholesaler has been in continuous compliance with the: 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. The Comptroller may revoke an exemption granted to a person under this regulation for: 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. A licensee may apply to the Comptroller for reinstatement of a revoked exemption under §C of this regulation. The Comptroller may reinstate the security exemption if the licensed wholesaler has been in continuous compliance as provided in §B for a period of 2 years following the revocation. A licensed wholesaler applying for an exemption from filing a security shall complete forms provided by the Comptroller and shall submit the supporting information as the Comptroller deems necessary. This information may include, but is not limited to, an audited financial statement, copies of federal and State tax returns for the preceding 3 years, and a current balance sheet. An exempt licensed wholesaler shall file a renewal application for exemption concurrent with the license renewal application in order to maintain the exemption. When the licensed wholesaler is a corporation, a new exemption application shall be filed any time the officer of the corporation exercising direct control over its fiscal management is changed. Security Exemption. 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. Wholesalers who do not post a security or have not been granted a security exemption under this regulation will be required to purchase stamps by authorizing the Comptroller to withdraw the amounts due from the wholesaler’s bank account, otherwise known a direct debit. A wholesaler may deliver unstamped cigarettes to a Maryland subwholesaler only if that subwholesaler has applied for and received permission from the Comptroller to buy unstamped cigarettes for sale outside Maryland. A subwholesaler who receives the permission in §A of this regulation shall: 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. Packages of sample cigarettes, which are to be provided to consumers free of charge, shall be unstamped and prominently identified as “Sample Cigarettes Not for Sale—All Applicable State Taxes Paid”. Manufacturers shall supply the Comptroller with a complete listing, including addresses of all representatives, warehouses, advertising agencies, etc., who distribute or store sample cigarettes in Maryland on their behalf. Premium cigars include those that are made from 100 percent whole tobacco leaves where the filler, binder, and wrapper, are made of all tobacco, and may include adhesives or other materials used to maintain size, texture, or flavor and includes no tips, filters or nontobacco mouthpieces. Tax-General Article, §§2-103, 12-303, and 12-306, Annotated Code of Maryland Effective date: Regulation .01 effective June 27, 1961 Regulation .01D repealed effective January 23, 1981 (8:2 Md. R. 110) Regulation .02 effective April 28, 1965 Regulations .03—.04 effective June 27, 1961 Regulation .05 effective July 1, 1969 Regulation .05A amended effective December 21, 1981 (8:25 Md. R. 1993) Regulation .05F adopted effective November 16, 1979 (6:23 Md. R. 1838) Regulation .05 repealed and new Regulation .05 adopted effective September 19, 1988 (15:19 Md. R. 2245) Regulations .06—.08 effective June 27, 1961 Regulation .07 repealed effective August 6, 1990 (17:15 Md. R. 1853) Regulation .09 adopted effective January 1, 1987 (13:25 Md. R. 2656) Chapter revised effective August 6, 1990 (17:15 Md. R. 1854) Regulation .05 amended effective July 1, 1993 (20:7 Md. R. 639) Regulation .05G amended effective July 10. 2023 (50:13 Md. R. 511) Regulation .06 amended effective July 10. 2023 (50:13 Md. R. 511) Regulation .07B amended effective July 10. 2023 (50:13 Md. R. 511) Regulation .08 adopted effective May 29, 2000 (27:10 Md. R. 964) Regulation .08 repealed as an emergency provision effective May 1, 2011 (38:11 Md. R. 670); emergency extended to March 16, 2012 (38:21 Md. R. 1274); repealed permanently effective November 28, 2011 (38:24 Md. R. 1499) Regulation .08D amended effective August 1, 2005 (32:13 Md. R. 1110); September 1, 2006 (33:17 Md. R. 1436) Regulation .08H adopted effective March 23, 2009 (36:6 Md. R. 487) Regulation .09 adopted effective March 4, 2013 (40:4Md. R. 344)