SN 2000(7)

2000 Legislation Affecting the Tobacco Products Tax

PURPOSE: The purpose of this Special Notice is to describe the changes made to the tobacco products tax during the 2000 session of the Connecticut General Assembly.

EFFECTIVE DATE: Effective July 1, 2000.

STATUTORY AUTHORITY: Conn. Gen. Stat. §12-330a, as amended by 2000 Conn. Pub. Acts 170, §36; Conn. Gen. Stat. §12-330c, as amended by 2000 Conn. Pub. Acts 174, §81; and Conn. Gen. Stat. §12-330d, as amended by 2000 Conn. Pub. Acts 174, §30.

NEW TAX RATE FOR SNUFF TOBACCO PRODUCTS: Effective July 1, 2000, there is a new tax rate for "snuff tobacco products."

"Snuff" and "snuff flour" have been removed from the definition of "tobacco products" subject to tax at the rate of 20% of the wholesale sales price of such products, and are now subject to tax at a different rate.

The new tax rate, imposed only on snuff tobacco products, is 40¢ per ounce and a proportionate tax at a like rate on all fractional parts of an ounce. The tax on snuff tobacco products must be computed on the net weight as listed by the manufacturer. For example, if a snuff tobacco product is sold in a container that lists its net weight as 1.2 ounces, the tax will be 48¢ (40¢ for one ounce plus 8¢ for the additional .2 ounce).

Snuff tobacco products defined. For purposes of the new tax rate, "snuff tobacco products" include only snuff tobacco products that have imprinted on the packages the designation "snuff" or "snuff flour," or the federal tax designation "Tax Class M," or both.

As with the regular tobacco products tax, the new tax on snuff tobacco products is imposed on the distributor or unclassified importer at the time the snuff tobacco product is manufactured, purchased, imported, received or acquired in this state. Connecticut imposes no tax on snuff tobacco products that are exported from Connecticut or are not subject to taxation pursuant to any laws of the United States.

NEW TOBACCO PRODUCTS TAX RETURN FILING DATE: Effective for all tobacco products tax returns due with respect to calendar months commencing on or after July 1, 2000, the due date for returns has been extended from the 10th day of the month to the 25th day of the month following the month with respect to which the return is filed.

This due date extension does not include the return due with respect to the month of June 2000. Licensed distributors and licensed unclassified importers were required to file the return for June 2000 on or before July 10, 2000.

The return for the month of July 2000 is due on or before August 25, 2000, and all subsequent returns will be due on or before the 25th day of the month.

REVISED TAX RETURNS: All licensed distributors and licensed unclassified importers of tobacco products will be mailed revised tax returns that reflect the rate change for snuff tobacco products and the due date change described in this Special Notice.

EFFECT ON OTHER DOCUMENTS: None affected.

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 Department of Revenue Services (DRS) informal interpretation of Connecticut tax law and may be referred to for general guidance by taxpayers or tax practitioners.

FOR FURTHER INFORMATION ON THE TOBACCO PRODUCTS TAX: For further information on the tobacco products tax, please call the Excise/Public Services Taxes Subdivision at 860-541-3225 during business hours, Monday through Friday.

FOR FURTHER INFORMATION ON OTHER CONNECTICUT TAXES: If you have questions about other Connecticut taxes, please call DRS during business hours, Monday through Friday:

• 1-800-382-9463 (toll-free within Connecticut), or
• 860-297-5962 (from anywhere).

TTY, TDD, and Text Telephone users only may transmit inquiries 24 hours a day by calling 860-297-4911.

FORMS AND PUBLICATIONS: Forms and publications are available all day, seven days a week:

• Internet: Preview and download forms and publications from the DRS Web site
• Telephone: Call 860-297-4753 (from anywhere), or 1-800-382-9463 (toll-free within Connecticut) and select Option 2 from a touch-tone phone

SN 2000(7)
Tobacco Products Tax
2000 Legislative Changes
Issued 07/26/00