245-22 Affixation; required prior to distribution; method and manner
(a) Beginning January 1, 2001, a licensee or the authorized agent or designee
of a licensee shall affix a stamp to the bottom of each individual package
of cigarettes prior to distribution.
(b) Beginning April 1, 2001, no individual package of cigarettes may be
sold or offered for sale to the general public unless affixed with the
stamp required under this section.
(c) Beginning April 1, 2001, no cigarette package may be placed or stored
in a vending machine unless affixed with the stamp required under subsection (a).
(d) The department shall adopt rules describing the method and manner in
which stamps are to be affixed to packages of cigarettes.
(e) For the purpose of allowing compensation for the costs necessarily
incurred in affixing the proper tax stamps to each package of cigarettes
prior to distribution, each licensee or authorized agent or a designee
of a licensee purchasing stamps from the department may purchase the stamps
at a reduction of 0.4 per cent of the denominated value of each stamp
purchased. The reduction shall be the only discount allowed to purchasers
from the department. If a purchaser does not comply with all of the provisions
of title 14, the licensee shall pay the full denominated value of the
stamps purchased until the licensee has complied. The department may increase
or decrease the 0.4 per cent reduction by rule under chapter 91. [L 2000,
c 249, pt of §1; am L 2001, 270, §8]