Chapter 15 - Sales Tax
CHAPTER 18 - CIGARETTE TAXES
39-18-101. Definitions.
(a) As used in this article:
(i) "Cash" means United States currency, certifiedbank checks or bank cashier's checks payable in United States currency;
(ii) "Sale" or "sell" means any exchange ortransfer of title or possession within the state including installment creditand conditional sales to any other person for a consideration;
(iii) "This article" means W.S. 39-18-101 through39-18-111;
(iv) "Wholesale purchase price" means the establishedprice for which a manufacturer sells the tobacco product to a wholesalerexclusive of any discount or other reduction;
(v) "Wholesaler" means any person who:
(A) Whether located within or without Wyoming, imports, sellsor distributes cigarettes, cigars, snuff or other tobacco products into thisstate for sale or resale;
(B) Purchases cigarettes, cigars, snuff or other tobaccoproducts in this state for sale or resale;
(C) Purchases cigarettes for sale or resale through mechanicalvending devices except persons who sell cigarettes in vending devices which areowned or leased by them and located in their place of business;
(D) Sells or distributes for sale or resale cigarettes over theinternet or through any other means of direct or indirect mail solicitation ordelivery to any person in this state.
(vi) "Cigarette importer" means any person who importsinto the United States, either directly or indirectly, a finished cigarette forsale or distribution in this state;
(vii) "Cigarette manufacturer" means any person whomanufactures, fabricates, assembles, processes or labels a finished cigarettefor sale in this state;
(viii) "Moist snuff" means any moist finely cut groundor powdered tobacco intended to be placed in the oral cavity, other than drysnuff.
39-18-102. Administration; confidentiality.
(a) The payment of the taxes required by this article shall beevidenced by the affixing of stamps, imprints or impressions on each package ofcigarettes sold or distributed by a licensed wholesaler. The department shallobtain suitable stamps and sell them to licensed wholesalers for cash at a sixpercent (6%) discount. The department may deposit cigarette tax stamps in bankswithin Wyoming for disbursement to licensed wholesalers pursuant to rules andregulations of the department. The department shall keep accurate records ofall stamps sold. The department may authorize licensed wholesalers to usedepartment approved metering machines to affix imprints or impressions in lieuof affixing stamps. The machine shall be sealed by the department and used pursuantto rules and regulations of the department. The department shall inspect andread each metering machine at least once a month or may approve and appoint abank within Wyoming of the wholesaler's choice to act as setting agent pursuantto rules and regulations of the department. Meter settings shall be sold tolicensed wholesalers for cash at a six percent (6%) discount. Wholesalerspurchasing stamps, imprints or impressions with other than cash shall furnishthe department a bond of not less than ten thousand dollars ($10,000.00) orsuch other amount as specified by the department.
(b) The tax imposed by W.S. 39-18-103(a)(iii) shall be paid bythe wholesaler. The wholesaler shall be entitled to retain four percent (4%)of any tax collected under W.S. 39-18-103(a)(iii).
39-18-103. Imposition.
(a) Taxable event. The following event shall constitute ataxable event under this article:
(i) There is levied and shall be collected and paid to thedepartment an excise tax at the rate imposed by W.S. 39-18-104(a) upon the saleof each cigarette sold by wholesalers;
(ii) There is levied and shall be paid to the department anexcise tax at the rate imposed by W.S. 39-18-104(b) upon the use or storage byconsumers of cigarettes in Wyoming but only if the tax imposed by paragraph (i)of this subsection has not been paid;
(iii) In addition to the other taxes imposed by this subsection,there is levied and assessed upon cigars, snuff and other tobacco productspurchased or imported into this state by wholesalers for resale, exceptcigarettes taxed under this subsection, an excise tax at the rate imposed byW.S. 39-18-104(c) or (e), as applicable;
(iv) The tax imposed by paragraph (iii) of this subsection shallalso be imposed upon the use or storage by consumers of cigars, snuff and othertobacco products in this state, and upon those consumers, at the rate imposedby W.S. 39-18-104(d) or (f), as applicable. This tax shall not apply if thetax imposed by paragraph (iii) of this subsection has been paid.
(b) Basis of tax. The state preempts the field of imposingtaxes on cigarettes and no city, town or county shall impose, levy or collecttaxes upon the sale, occupation or privilege of selling cigarettes.
(c) Taxpayer. The following taxpayers are liable for the taximposed by this article:
(i) There is levied and shall be collected and paid to thedepartment an excise tax at the rate imposed by W.S. 39-18-104(a) upon the saleof each cigarette sold by wholesalers;
(ii) There is levied and shall be paid to the department anexcise tax at the rate imposed by W.S. 39-18-104(b) upon the use or storage byconsumers of cigarettes in Wyoming but only if the tax imposed by paragraph (i)of this subsection has not been paid;
(iii) In addition to the other taxes imposed by this subsection,there is levied and assessed upon cigars, snuff and other tobacco productspurchased or imported into this state by wholesalers for resale, exceptcigarettes taxed under this subsection, an excise tax at the rate imposed byW.S. 39-18-104(c) or (e), as applicable;
(iv) The tax imposed by paragraph (iii) of this subsection shallalso be imposed upon the use or storage by consumers of cigars, snuff and othertobacco products in this state, and upon those consumers, at the rate imposedby W.S. 39-18-104(d) or (f), as applicable. This tax shall not apply if thetax imposed by paragraph (iii) of this subsection has been paid.
39-18-104. Taxation rate.
(a) There is levied and shall be collected and paid to thedepartment an excise tax upon the sale of each cigarette sold by wholesalers asfollows:
(i) Six-tenths of a cent ($.006); and
(ii) Two and four-tenths cents ($.024).
(b) There is levied and shall be paid to the department anexcise tax upon the use or storage by consumers of cigarettes in Wyoming butonly if the tax imposed by subsection (a) of this section has not been paid asfollows:
(i) Six-tenths of a cent ($.006); and
(ii) Two and four-tenths cents ($.024).
(c) In addition to the other taxes imposed by this section,there is levied and assessed upon cigars, snuff and other tobacco productspurchased or imported into this state by wholesalers for resale, exceptcigarettes and moist snuff taxed under this section, an excise tax at the rateof twenty percent (20%) of the wholesale purchase price at which the tobaccoproducts are purchased by wholesalers from manufacturers.
(d) The tax imposed by subsection (c) of this section shallalso be imposed upon the use or storage by consumers of cigars, snuff and othertobacco products other than cigarettes and moist snuff in this state, and uponthose consumers, at the rate of ten percent (10%) of the retail price of thecigar, snuff or other tobacco product other than cigarettes and moist snuff. This tax shall not apply if the tax imposed by subsection (c) of this sectionhas been paid.
(e) In addition to the other taxes imposed by this section,there is levied and assessed upon moist snuff purchased or imported into thisstate by wholesalers for resale, an excise tax at the rate of sixty cents($0.60) for any amount of moist snuff up to one (1) ounce plus a proportionatetax at the like rate on any fractional parts of more than one (1) ounce. Thetax on moist snuff shall be imposed based on the net weight as listed by themanufacturer.
(f) The tax imposed by subsection (e) of this section shallalso be imposed upon the use or storage by consumers of moist snuff in thisstate, and upon those consumers, at the rate of sixty cents ($0.60) for anyamount of moist snuff up to one (1) ounce plus a proportionate tax at the likerate on any fractional parts of more than one (1) ounce. This tax shall notapply if the tax imposed by subsection (e) of this section has been paid. Thetax on moist snuff shall be imposed based on the net weight as listed by themanufacturer.
39-18-105. Exemptions.
(a) Sales of cigarettes to any agency of the United Statesgovernment, sales in interstate commerce or the taxation of any transactionprohibited by the United States constitution are exempted from the provisionsof this article but shall be reported to the department in the mannerprescribed by it.
(b) The sales and use tax exemptions specified in W.S.39-15-105 and 39-16-105 are not applicable to this article.
39-18-106. Licensing; permits.
(a) Every wholesaler, cigarette importer and cigarettemanufacturer who sells or offers to sell cigarettes, cigars, snuff or othertobacco products in this state must have a license to do so issued by thedepartment. No license or renewal of a license shall be granted under thissection unless the wholesaler states in writing, under penalty for falseswearing, that he shall comply fully with W.S. 9-4-1201 through 9-4-1209. Thelicense fee is ten dollars ($10.00) per year or fraction thereof and is validthrough June 30 in each year. The license will be granted only to wholesalerswho own or operate the place from which sales are made and additional licensesmust be obtained for each separate location. The licenses are transferablepursuant to rules and regulations promulgated by the department.
(b) Repealed By Laws 2005, ch. 77, 2.
(c) No license for a cigarette wholesaler, cigarette importeror cigarette manufacturer shall be granted, maintained or renewed if theapplicant:
(i) Is not a participating manufacturer as defined insubsection II(jj) of the master settlement agreement as defined in W.S.9-4-1201(a)(v), or is not in full compliance with W.S. 9-4-1201 through9-4-1210;
(ii) Has imported or caused to be imported into the UnitedStates any tobacco products in violation of 19 U.S.C. 1681a; or
(iii) Has imported or caused to be imported into the UnitedStates, or manufactured for sale or distribution in the United States anycigarette that does not fully comply with the federal Cigarette Labeling andAdvertising Act, (15 U.S.C. 1331, et seq.).
39-18-107. Compliance; collection procedures.
(a) Returns and reports. The following shall apply:
(i) Each wholesaler shall keep complete and accurate records ofall cigarettes, cigars, snuff or other tobacco products purchased and sold forthree (3) years. The records shall be in the form prescribed by the departmentand will be available for inspection by the department at any reasonable time. The department may investigate and examine the stock of cigarettes upon anypremises where they are stored or sold;
(ii) On or before the tenth day of each calendar quarter, everyconsumer who, during the preceding calendar quarter, has acquired title to orpossession of cigars, snuff or other tobacco products for use or storage inthis state, upon which products the tax imposed by W.S. 39-18-103(a)(iii) hasnot been paid, shall file a return with the department showing the quantity ofsuch products so acquired. The return shall be made upon a form furnished andprescribed by the department and shall contain such other information as thedepartment may require. The return shall be accompanied by a remittance forthe full unpaid tax liability shown by it.
(b) Payment. The following shall apply:
(i) There is levied and shall be collected and paid to the departmentan excise tax at the rate imposed by W.S. 39-18-104(a) upon the sale of eachcigarette sold by wholesalers;
(ii) There is levied and shall be paid to the department anexcise tax at the rate imposed by W.S. 39-18-104(b) upon the use or storage byconsumers of cigarettes in Wyoming but only if the tax imposed by paragraph (i)of this subsection has not been paid;
(iii) No wholesaler shall sell or transfer any stamps issuedunder the provisions of this article.
(c) Timelines. The following shall apply:
(i) No later than the twentieth day of the month following thesale of cigarettes, or the month following the end of the calendar quarter forcigars, snuff or other tobacco products each wholesaler shall return to thedepartment the following information on forms furnished by the department:
(A) The number of packages of cigarettes sold in eachincorporated city and town;
(B) The number of packages of cigarettes sold in each countyoutside the incorporated cities and towns;
(C) Other information required by the department;
(D) The amount paid by the wholesaler to the manufacturer forcigars, snuff or other tobacco products other than moist snuff. For sales ofmoist snuff, the return shall include the net weight as listed by themanufacturer. The department shall compile the information provided under thissubparagraph with respect to moist snuff tobacco sales on an annual basis andshall report the information to the legislature every five (5) years beginningon July 1, 2014.
(ii) The stamps, imprints or impressions shall be affixed by thewholesaler any time before the cigarettes are transferred from his possession.
39-18-108. Enforcement.
(a) Audits. There are no specific applicable provisions foraudits for this chapter.
(b) Interest. There are no specific applicable provisions forinterest for this chapter.
(c) Penalties. The following shall apply:
(i) Any package of cigarettes found in this state withoutstamps, imprints or impressions affixed thereto as provided by this article iscontraband goods and may be seized without a warrant by the department, withboard approval, or any peace officer of this state when so directed by thedepartment. This section does not apply to cigarettes in the original unopenedshipping package in the possession of or in transit to a licensed wholesaler orto owners of cigarettes not willfully or intentionally evading the tax imposedby this article;
(ii) The following acts are misdemeanors punishable by a fine ofnot more than one hundred dollars ($100.00) or imprisonment in the county jailfor not more than six (6) months or both:
(A) Selling or distributing cigarettes, cigars, snuff or othertobacco products as a wholesaler without a license;
(B) Selling, offering to sell, displaying for sale orpossessing with intent to sell cigarettes without proper stamps, imprints orimpressions;
(C) Evading or aiding or abetting any person to evade thepayment of the taxes imposed by this article;
(D) Making any false or fraudulent return.
(iii) Each act in violation of paragraphs (ii) and (vii) through(xi) of this subsection is a separate offense;
(iv) The penalties specified in paragraphs (ii), (iii) and (vii)through (xi) of this subsection are in addition to the provisions of paragraph(i) of this subsection and subsection (e) of this section;
(v) The department may revoke the license of any wholesalerviolating any provision of this article after a hearing. No license shall beissued to a wholesaler for two (2) years following revocation of his license;
(vi) Any person who purchases any tobacco product for resale inthis state from other than a licensed wholesaler is liable for the tax and anypenalties and interest imposed under this paragraph as if he were a wholesalerunder this act and shall pay an additional penalty of twenty-five percent (25%)of any tax due. Any wholesaler or other person who fails to file any return orto pay any tax within the time required or permitted by this subsection shallbe subject to a penalty of five percent (5%) of the amount of the tax due, plusone percent (1%) of the tax for each month of delinquency or fraction thereof. The department may waive all or any part of this penalty for good cause shown;
(vii) Any person who does any act prohibited by this article, oromits, neglects or refuses to comply with any duty imposed upon him by thisarticle, or causes not to be done any of the things required by this article,or does any act prohibited by this article, may, in addition to any otherpenalty provided by this article, be liable for a penalty of not to exceed onethousand dollars ($1,000.00) or five (5) times the retail value of the tobaccoproduct at issue, whichever is lesser, to be recovered in a civil action;
(viii) Any person who fails to pay any tax imposed by this articleat the time prescribed by law or department rule or regulation may, in additionto any other penalty provided by this article, be liable for a penalty of notto exceed five (5) times the tax due, but unpaid, to be recovered in a civilaction;
(ix) Any fixture, equipment or other personal property used by atobacco product wholesaler or retailer to commit any of the following actsshall be subject to forfeiture to the state, if the retail value of thecigarettes involved or any tax involved in the act exceeds five hundred dollars($500.00):
(A) Failing to keep or make any record, return, report orinventory required by this article, if the failure was with the intent todefraud the state;
(B) Keeping or making any false or fraudulent record, return,report or inventory required under this article;
(C) Refusing to pay any tax imposed by this article;
(D) Attempting in any manner to evade or defeat therequirements of this article.
(x) Any person who, with intent to defraud, fails to complywith any requirement of this article or regulation prescribed hereunder may, inaddition to any other penalty provided in this article, for each such offense,be fined not to exceed ten thousand dollars ($10,000.00), or be imprisoned fornot to exceed one (1) year, or both;
(xi) Notwithstanding any other provision of law, the sale orpossession for sale of counterfeit cigarettes with the intent to defraud by acigarette manufacturer, importer, wholesaler or retailer may result in theseizure of the product and related machinery by the department or any lawenforcement agency and shall be punishable as provided in this paragraph. Asused in this paragraph, "counterfeit cigarettes" means cigaretteswhich have a false manufacturing label or any package of cigarettes which bearsa counterfeit tax stamp. Any counterfeit cigarettes seized by the departmentunder paragraph (i) of this subsection shall be destroyed. The followingpenalties shall apply:
(A) A first violation involving a total quantity of less thantwo (2) cartons of cigarettes may be punishable by a fine of not to exceed onethousand dollars ($1,000.00) or five (5) times the retail value of thecigarettes involved, whichever is less;
(B) A subsequent violation involving a total quantity of lessthan two (2) cartons of cigarettes may be punishable by a fine of not to exceedfive thousand dollars ($5,000.00) or five (5) times the retail value of thecigarettes involved, whichever is greater;
(C) A first violation involving a total quantity of two (2)cartons of cigarettes or more may be punishable by a fine of not to exceed twothousand dollars ($2,000.00) or five (5) times the retail value of thecigarettes involved, whichever is less;
(D) A subsequent violation involving a quantity of two (2)cartons of cigarettes or more shall be punishable by a fine of not to exceedfifty thousand dollars ($50,000.00).
(xii) Any penalty collected under the provisions of thissubsection shall be deposited in the public school fund of the appropriatecounty as required by article 7, section 5 of the Wyoming constitution.
(d) Liens. There are no specific applicable provisions forliens for this chapter.
(e) Tax sales. Cigarettes seized in accordance with paragraph(c)(i) of this section shall be sold by the department to a licensed wholesalerto the best advantage of the state. Proceeds from the sale shall be remitted tothe state treasurer for deposit into the general fund. The licensed wholesalerpurchasing the cigarettes shall pay taxes and affix stamps, imprints orimpressions as provided by this article on cigarettes so purchased.
39-18-109. Taxpayer remedies.
(a) Interpretation requests. There are no specific applicableprovisions for interpretation requests for this chapter.
(b) Appeals. There are no specific applicable provisions forappeals for this chapter.
(c) Refunds. The department shall redeem any unused and uncancelledstamps presented by a wholesaler.
(d) Credits. Credit shall be given by the department for taxespaid on unsalable merchandise when the department is satisfied the merchandisehas been returned to the manufacturer and when evidenced by a statement signedby the wholesaler and a manufacturer's representative certifying the number ofpackages returned.
(e) Redemption. There are no specific applicable provisionsfor redemption for this chapter.
(f) Escrow. There are no specific applicable provisions forescrow for this chapter.
39-18-110. Statute of limitations.
Thereare no specific applicable provisions for a statute of limitations for thischapter.
39-18-111. Distribution.
(a) Thirty-three and one-third percent (33 1/3%) of the taxescollected pursuant to W.S. 39-18-104(a)(i) and (b)(i) shall be distributed toincorporated cities and towns and to boards of county commissioners in theproportion the cigarette taxes derived from sales within each incorporated cityor town or county bears to total cigarette taxes collected. The remaindershall be transferred to the state treasurer who shall distribute it as follows:
(i) All license fees under W.S. 39-18-106(a) shall be creditedto the state general fund;
(ii) Thirty-eight and one-fourth percent (38 1/4%) of the taxescollected shall be credited to the state general fund;
(iii) Sixty-one and three-fourths percent (61 3/4%) of the taxescollected shall be distributed to incorporated cities and towns and to boardsof county commissioners in the proportion the cigarette taxes derived fromsales within each incorporated city or town or county bears to total cigarettelicense taxes collected. The computation for the distribution shall be made bythe department according to the monthly returns filed by the wholesalers.
(b) The revenue received from the tax imposed by W.S.39-18-104(c) and (d) shall be deposited in the general fund.
(c) The revenue received from the tax imposed by W.S.39-18-104(a)(ii) and (b)(ii) shall be deposited in the general fund.