Payment of tax required to sell, distribute or transfer tobacco products
A. Except as provided in subsection B of this section, a person may not:
1. Sell, offer for sale, distribute or transfer any tobacco products on
which a tax is imposed by this chapter to any person within this state
unless at the time of the sale, distribution or transfer the tax has been
paid. The department shall consider tobacco taxes paid at the time of
the sale, distribution or transfer of cigarettes if evidenced by an Arizona
tax stamp or any other official indicia affixed to the package by a licensed
distributor. The department shall consider tobacco taxes paid at the time
of the sale, distribution or transfer of tobacco products other than cigarettes
if a licensed distributor reports and remits the taxes on the products
in accordance with the manner, method and time prescribed by section
42-3501. Sworn returns that are prepared and remitted by a licensed distributor
under section 42-3501 constitute official indicia that tobacco taxes have
been paid on the tobacco products.
2. Sell cigarettes that have Arizona tax stamps affixed unless the tax
evidenced by the stamps is actually paid. The department shall not refund
any amount of that tax on the grounds that the stamps are not required
to be affixed to the cigarettes.
B. A distributor licensed pursuant to section
42-3401 may not sell, distribute or transfer tobacco products for which the distributor
is licensed to another such licensed distributor without paying the tax
at the time of the sale, distribution or transfer.