Enacts new GS 105-113.8A to require that a heat transfer tax stamp be marked on a package of cigarettes subject to tax in North Carolina to indicate if the pack of cigarettes is taxable under state law. Makes it unlawful for a person who is not a licensed distributor (1) to receive or possess a package of unstamped cigarettes or (2) to place a stamp on a pack of cigarettes. Requires a licensed distributor who receives a package of unstamped cigarettes to place a stamp on the package within 48 hours of receipt excusive of Saturdays, Sundays, and legal holidays. Makes the licensed distributor responsible for placing the stamp on the package in a manner that ensures that the stamp cannot be removed without being mutilated or destroyed. Makes it the responsibility of the Secretary of the Department of Revenue (Secretary) to arrange for the manufacture and sale of the stamps and to keep a record of the stamps transferred to a licensed distributor.
Amends GS 105-113.9 regarding the setting aside of unstamped cigarettes by licensed distributors engaged in interstate business. Amends GS 105-113.10 to specify exceptions when a licensed distributor may ship a package of unstamped cigarettes. Also allows a manufacturer delivering cigarettes to another licensed distributor to be relieved of paying tobacco products tax, with the Secretary’s approval, when a manufacturer (1) ships unstamped cigarettes directly to a licensed distributor or (2) delivers unstamped cigarettes to a licensed distributor at the manufacturer’s place of business if the manner of delivery or receipt is approved.
Amends GS 105-113.18 to require that a distributor pay the tax levied on the sale or possession of a package of cigarettes via the stamp that the distributor must obtain and place on the cigarettes. Provides that a person who is not a distributor pays the levied tax when that person is required to file a report. Provides guidelines for reports that must be filed with the Secretary. Requires that a person who is not a distributor who acquires a package of unstamped cigarettes for sale use or consumption that are subject to the tax must file a report within 96 hours after receiving the package of cigarettes. Requires a person who is not a licensed distributor who is engaged in transporting cigarettes on the state’s public roadways to file a report upon notice from the Secretary.
Amends GS 105-113.21 to make a distributor eligible for a discount of 0.9 cents of the charge for every stamp purchased to cover the distributor’s expenses in placing the stamps on the cigarettes and maintaining the required records. Provides that a distributor may apply for a refund for unused or mutilated stamps or for stale product.
Amends GS 105-113.33 to make forging a stamp or knowingly placing a forged stamp on a package of cigarettes a Class H felony.
Makes additional technical corrections and conforming changes.
Requires a distributor who has unstamped cigarettes on hand as of the effective date of the act to stamp the cigarettes as required by the act within 48 hours of the effective date.
Effective July 1, 2011.