§ 44-19-10.1 - Prepayment of sales tax on cigarettes.
SECTION 44-19-10.1
§ 44-19-10.1 Prepayment of sales tax oncigarettes. – (a) Every distributor and dealer licensed pursuant to chapter 20 of this titleshall pay, as a prepayment for the taxes imposed by chapter 18 of this title, atax on cigarettes possessed for sale or use in this state and upon which thedistributor or dealer is required to affix cigarette stamps pursuant to chapter20 of this title. The tax shall be computed annually by multiplying the minimumprice of standard brands of cigarettes in effect as of April 1, 2005 and eachApril 1 thereafter, by the tax rate imposed by §§ 44-18-18 and44-18-20. The minimum price of standard brands of cigarettes shall bedetermined in accordance with chapter 6 of title 13 and the regulationspromulgated by the tax administrator. The tax shall be prepaid at the time thedistributor or dealer purchases such stamps from the tax administrator.However, the tax administrator may, in his or her discretion, permit a licenseddistributor or licensed dealer to pay for the prepayment within thirty (30)days after the date of purchase, provided that a bond satisfactory to the taxadministrator in an amount not less than the prepayment due shall have beenfiled with the tax administrator conditioned upon payment for the prepayment ofsales tax. The tax administrator shall keep accurate records of all stamps soldto each distributor and dealer.
(b) The provisions of § 44-20-12 relating to the use ofstamps to evidence payment of the tax imposed by chapter 20 of this title shallbe applicable to the prepayment requirement of the sales/use tax imposed bythis section. Provided, however, no sales/use tax is required to be prepaid onsales of cigarettes sold to the United States, its agencies andinstrumentalities or the armed forces of the United States, this state(including any city, town, district or other political subdivision) and anyother organization qualifying as exempt under § 44-18-30(5).
(c) Except as otherwise provided in this section, all otherprovisions of chapters 18 and 19 of this title applicable to administration andcollection of sales/use tax shall apply to the prepayment requirement pursuantto this section.
(d) All taxes paid pursuant to this section are conclusivelypresumed to be a direct tax on the retail consumer, precollected for thepurpose of convenience and facility only.