Connecticut State Department of Revenue Services

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SN 94(4)

1993 Legislation Affecting Licensed Cigarette Dealers

PURPOSE: The purpose of this Special Notice is to describe two recently enacted public acts increasing the cigarette tax rate and imposing a tax on the cigarette inventory of licensed cigarette distributors and dealers.

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, 1994, except as otherwise noted.

TAX RATE INCREASE: The cigarette tax rate will increase from 23.5 mills to 25 mills per cigarette on July 1, 1994.

Tax on Following Quantity:

CARTON

10 packs per carton (20s) before 7-1-94 = $4.70 on or after 7-1-94 = $5.00

10 packs per carton (25s) before 7-1-94 = 5.875 on or after 7-1-94 = 6.25

8 packs per carton (25s) before 7-1-94 = 4.70 on or after 7-1-94 = 5.00

PACK

10 cigarettes per pack before 7-1-94 = 0.235 on or after 7-1-94 = 0.25

20 cigarettes per pack before 7-1-94 = 0.47 on or after 7-1-94 = 0.50

25 cigarettes per pack before 7-1-94 = 0.5875 on or after 7-1-94 = 0.625

TAX ON CIGARETTE INVENTORY AS OF JUNE 30, 1994: 1993 Conn. Pub. Acts 74, 25 imposes a tax on the stamped cigarette inventory as of the close of business on June 30, 1994 (or at midnight, if the business closes past then) of all licensed cigarette dealers.

Failure of any cigarette dealer to file not later than August 1, 1994 a Form AU-930 will be sufficient reason to revoke the dealer's license. Also, cigarettes on which the inventory tax has not been paid are contraband subject to seizure by the Department, and dealers 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.

LICENSE TO BE CONSPICUOUSLY DISPLAYED: Each cigarette dealer's 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 94(4)
Cigarette tax
Issued: 6/16/94