Collection of tax by stamps; sale at discount to distributors; basis of discount percentage; alternate method of collection of tax on cigars; prohibition of sale or exchange of stamps with another distributor; redemption
(a) Except as otherwise provided in this Code section, the taxes imposed
by Code Section 48-11-2 shall be collected and paid through the use of
stamps. The commissioner shall secure stamps of such design and
materials as the commissioner deems appropriate to protect the revenue
and shall sell the stamps to licensed distributors at a discount of not
less than 2 percent and not more than 8 percent of the value of the stamps.
The exact percentage of the discount shall be based on brackets
according to the volume of cigars, cigarettes, and loose or smokeless
tobacco handled by the distributor pursuant to regulations promulgated
by the commissioner. The commissioner shall prescribe by regulation
the condition, method, and manner in which stamps are to be affixed to
containers of cigars, cigarettes, and loose or smokeless tobacco.
(b) The commissioner may prescribe by regulation an alternate method, in lieu of the sale of stamps, of collecting and paying the tax imposed upon cigars and little cigars. The commissioner may also prescribe by regulation an alternate method, in lieu of the sale of stamps, of collecting and paying the tax imposed on loose or smokeless tobacco. Any such regulations shall be promulgated so that use of the alternate method will result in the same revenue to the state as the state would realize through the sale of stamps to the distributors.
(c) No distributor shall sell or exchange with another distributor any stamps issued pursuant to this chapter. The commissioner is authorized to redeem at cost price any stamps presented for redemption by a licensed distributor when the commissioner determines from physical inspection that no cigars, cigarettes, or loose or smokeless tobacco has been sold by the distributor under pretense of the tax imposed by this chapter having been paid through use of the stamps.