Administrative Rule Review Report  #AR09-048

Legislative Service Office

31-Aug-09

AGENCY: Department of Revenue.

DATE SUBMITTED: August 20, 2009

SUBJECT: Chapter 4, Cigarette, Moist Snuff and Other Tobacco Taxes.

NATURE OF RULES:                        Legislative, interpretative, procedural.

STATUTORY AUTHORITY:            W.S. 39-11-102

DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION SUBMITTED BY THE AGENCY TO LSO:  Apparently complete to date.  Notice of the proposed adoption of new rules was provided by the LSO as required by W.S. 28-9-103(d).  No comments have been received to date.

SUMMARY OF RULES:  The existing rules provide for the taxation of cigarettes.  The rules are amended to clarify the taxation of cigarettes, moist snuff and other tobacco products.  The rules in section 1 are amended to reference the appropriate statute for rulemaking authority.  The rules in section 2 are amended to clarify the purpose by including other tobacco products.  The existing section 3 is repealed and replaced with definitions of certain terms used in the amended rules.  Existing section 4 is repealed and replaced, the new section 4 requires cigarette stamps to be affixed to each individual package and provides rules for the purchase and distribution of cigarette tax stamps.  Section 4 also establishes the calculation of the tax on "moist snuff" and on "other tobacco products and provides for the inspection of retail stores and cigarette vending machines.  Section 5 is a new section requiring a license for the sale of cigarettes and other tobacco products.  Section 6 is a new section requiring reports of cigarette and other tobacco sales from wholesalers.  Section 7 is a new section establishing the process for refunds for overpayment.

Section 8 is a revision of the existing section 5 dealing with the sales of cigarettes on Indian Reservations.  Section 9 is a new section dealing with the taxation of cigarettes purchased from outside the State for use, storage or consumption within the State.  Section 10 is a new section which provides a hearing process for the revocation of the license of a wholesaler.

FINDINGS:  The rules appear to be within the scope of statutory authority and legislative intent.

STAFF RECOMMENDATION:  That the rules be placed on the Consent List and be approved by the Council as submitted by the Agency.

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Joshua Anderson

Staff Attorney

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Lynda G. Cook

Staff Attorney

JDA/