SN 93(6)
1993 Legislation Affecting Licensed Cigarette Distributors
PURPOSE: The purpose of this Special Notice is to describe two recently enacted public acts increasing the cigarette tax rate; imposing a tax on the cigarette inventory of licensed cigarette distributors and dealers; providing for the sale of heat-applied cigarette tax decals; discontinuing cigarette metering machine usage after January 1, 1995; eliminating the cigarette vending machine dealer's license as a separate license category for which an additional license fee must be paid; and providing for the filing of the monthly cigarette tax report by the 25th day (rather than the l0th day) of the following month.
STATUTORY AUTHORITY: 1993 Conn. Pub. Acts 15, amending Conn. Gen. Stat. §§12-286, 12-287, 12-288, 12-291, 12-291a, 12-293a, 12-298 and 12-299, and 1993 Conn. Pub. Acts 74, amending Conn. Gen. Stat. §§12-296 and 12-316.
EFFECTIVE DATE: July 1, 1993, except as otherwise noted.
TAX RATE INCREASE: The cigarette tax rate will increase from 22.5 mills to 23.5 mills per cigarette on July 1, 1993 and from 23.5 mills to 25.0 mills per cigarette on July 1, 1994.
Tax on Following Quantity
Carton--10 packs per carton(20s):
| before 7-1-93 | $4.50 |
| 7-1-93 to 6-30-94 | $4.70 |
| on or after 7-1-94 | $5.00 |
Carton--10 packs per carton(25s)
| before 7-1-93 | $5.625 |
| 7-1-93 to 6-30-94 | $5.875 |
| on or after 7-1-94 | $6.25 |
Carton--8 packs per carton (25s)
| before 7-1-93 | $4.50 |
| 7-1-93 to 6-30-94 | $4.70 |
| on or after 7-1-94 | $5.00 |
Pack--20 cigarettes per pack
| before 7-1-93 | $0.45 |
| 7-1-93 to 6-30-94 | $0.47 |
| on or after 7-1-94 | $0.50 |
Pack--25 cigarettes per pack
| before 7-1-93 | $0.5625 |
| 7-1-93 to 6-30-94 | $0.5875 |
| on or after 7-1-94 | $0.625 |
TAX ON CIGARETTE INVENTORY AS OF JUNE 30, 1993: 1993 Conn. Pub. Acts 74, §25 imposes a tax on the stamped cigarette inventory as of the close of business on June 30, 1993 (or at midnight, if the business closes past then) of all licensed cigarette distributors.
Failure of any cigarette distributor to file not later than August 1, 1993 a Form AU-930 (or Form AU-931, for cigarette vending machine dealers) will be sufficient reason to revoke the distributor's license. Also, cigarettes on which the inventory tax has not been paid are contraband subject to seizure by the Department, 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.
CIGARETTE TAX HEAT-APPLIED DECALS: On and after July 1, 1993, the Department will be selling heat-applied cigarette tax decals for packs of 20 cigarettes at its main office and all its field offices (other than East Hartford). The Department will continue to sell water-applied cigarette tax stamps, but they will be sold only at the Department's main office. As of July 1, 1993, the following cigarette decals or stamps will be available to all stampers:
HEAT APPLIED DECALS:
Size of Pack 20s
Color Green
Denomination $0.47
Sold in Rolls of 30,000
Size of Pack 25s
Color Blue
Denomination $0.5875
Sold in Rolls of 3,600
WATER-APPLIED STAMPS:
Size of Pack l0s
Color Yellow
Denomination $0.235
Size of Pack 20s
Color Green
Denomination $0.47
Size of Pack 25s
Color Blue
Denomination $0.5875
ELIMINATION OF CIGARETTE VENDING MACHINE DEALER'S LICENSE: Persons operating and servicing fewer than 25 cigarette vending machines will be required to apply for and be issued a cigarette dealer's license under Conn. Gen. Stat. §12-287. The annual fee for a cigarette dealer's license is $25. They will no longer be required to apply for a cigarette vending machine dealer's license under the now-repealed Conn. Gen. Stat. §12-291.
LATER FILING DATE FOR MONTHLY CIGARETTE TAX REPORT: Those cigarette distributors who are required to file a monthly cigarette tax report (Form CT-15 or Form CT-15A) may now file that report by the 25th day (rather than the 10th day) of the following month.
LICENSE TO BE CONSPICUOUSLY DISPLAYED: Each distributors license must be conspicuously displayed on the premises that is covered by the license.
EFFECT OF THIS DOCUMENT: A Special Notice is a document that announces a new policy or practice in response to changes in State or federal laws or regulations or to judicial decisions. A Special Notice indicates the Department's informal interpretation of Connecticut tax law and may be referred to for general guidance by taxpayers or tax practitioners.
SN 93(6)
Cigarette tax
Issued 5/27/93