Connecticut State Department of Revenue Services

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SN 91(8)

Cigarette Tax Rate Increase and Tax on Cigarette Inventory

PURPOSE: This Special Notice describes the cigarette tax rate increase and the tax imposed on the cigarette inventory of licensed cigarette distributors and dealers.

EFFECTIVE DATE: Effective upon issuance and applicable to the cigarette inventory of licensed cigarette distributors and dealers as of the close of business on September 30, 1991 (or at midnight, if the business closes past then) and to sales of cigarettes by licensed cigarette distributors and dealers on or after October 1, 1991.

STATUTORY AUTHORITY: Conn. Gen. Stat. §§12-296 and 12-316 as amended by 1991 Conn. Pub. Acts 3, §§131 and 132 (June Spec. Sess.); Conn. Gen. Stat. §§12-302, 12-303, 12-304 and 12-305; 1991 Conn. Pub. Acts 3, §133 (June Spec. Sess.).

TAX RATE INCREASE: The cigarette tax rate has been increased from 20 mills to 22.5 mills per cigarette.

Tax on Following Quantity

Carton--10 packs per carton (20s) before 10-1-91= $4.00 on or after 10-1-91 = $4.50
Carton--10 packs per carton (25s) before 10-1-91 = 5.00 on or after 10-1-91 = 5.625
Carton--8 packs per carton (25s) before 10-1-91 = 4.00 on or after 10-1-91 = 4.50
Pack--20 cigarettes per pack before 10-1-91 = 0.40 on or after 10-1-91 = 0.45
Pack--25 cigarettes per pack before 10-1-91 = 0.50 on or after 10-1-91 = 0.5625

TAX ON CIGARETTE INVENTORY AS OF SEPTEMBER 30, 1991: While 1991, Conn. Pub. Acts 3, §133 (June Spec. Sess.) contains an obvious typographical error that appears to impose a tax on the cigarette inventory of a licensed cigarette dealer or distributor as of August 31, 1991, the Department interprets the law as actually imposing the tax on the cigarette inventory as of September 30, 1991.

Failure of any cigarette dealer or distributor to file not later than November 1. 1991 the enclosed Form AU-930 (or Form AU-931, for cigarette vending machine dealers) will be sufficient reason to revoke the dealer's license or distributor's license, as the case may be. Additionally, cigarettes on which the inventory tax has not been paid are contraband subject to seizure by the Department, and dealers and distributors selling, offering for sale, displaying for sale or possessing with intent to sell cigarettes not bearing stamps evidencing proper payment of the cigarette tax are subject to criminal prosecution. 

SN 91(8)
Cigarette Taxes
Issued 9/91
TPS/0006d/991