HB 7A

1
A bill to be entitled
2An act relating to the cigarette tax; creating s. 210.025,
3F.S.; providing for an additional tax on cigarettes;
4creating s. 210.205, F.S.; providing for distribution of
5the proceeds from the additional cigarette tax; specifying
6allocation of the proceeds from the additional cigarette
7tax to certain trust funds; providing application;
8specifying application of the additional tax to existing
9inventory; requiring persons with existing inventory to
10certify such inventory to the Division of Alcoholic
11Beverages and Tobacco of the Department of Business and
12Professional Regulation and remit the amount of the
13additional tax due on such inventory; providing for
14application of certain penalties and interest on
15delinquent taxes; providing for deposit of the proceeds
16from the additional tax collected on such inventory;
17amending ss. 210.01, 210.021, 210.04, 210.05, 210.06,
18210.09, and 210.18, F.S.; providing additional cross-
19references to conform; providing an effective date.
20
21Be It Enacted by the Legislature of the State of Florida:
22
23     Section 1.  Section 210.025, Florida Statutes, is created
24to read:
25     210.025  Additional cigarette tax imposed; collection.--
26     (1)  In addition to the tax imposed by s. 210.02, an excise
27or privilege tax is imposed upon the sale, receipt, purchase,
28possession, consumption, handling, distribution, and use of
29cigarettes in this state, in the following amounts, except as
30hereinafter otherwise provided, for cigarettes of standard
31dimensions:
32     (a)  Upon all cigarettes weighing not more than 3 pounds
33per thousand, 32.55 mills on each cigarette.
34     (b)  Upon all cigarettes weighing more than 3 pounds per
35thousand and not more than 6 inches long, 65.10 mills on each
36cigarette.
37     (c)  Upon all cigarettes weighing more than 3 pounds per
38thousand and more than 6 inches long, 130.20 mills on each
39cigarette.
40     (2)  The description of cigarettes contained in paragraphs
41(a), (b), and (c) of subsection (1) are hereby declared to be
42standard as to dimensions for taxing purposes as provided in
43this law and should any cigarette be received, purchased,
44possessed, sold, offered for sale, given away, or used of a size
45other than of standard dimensions, the same shall be taxed at
46the rate of 2.71 cents on each such cigarette.
47     (3)  When cigarettes as described in paragraph (1)(a) are
48packed in varying quantities of 20 cigarettes or less, except
49manufacturer's free samples authorized under s. 210.04(9), the
50following rate shall govern:
51     (a)  Packages containing 10 cigarettes or less require a
5232.55-cent tax.
53     (b)  Packages containing more than 10 but not more than 20
54cigarettes require a 65.10-cent tax.
55     (4)  When cigarettes as described in paragraph (1)(b) are
56packed in varying quantities of 20 cigarettes or less, except
57manufacturer's free samples authorized under s. 210.04(9), the
58following rates shall govern:
59     (a)  Packages containing 10 cigarettes or less require a
6065.10-cent tax.
61     (b)  Packages containing more than 10 but not more than 20
62cigarettes require a 130.20-cent tax.
63     (5)  When cigarettes as described in paragraph (1)(c) are
64packed in varying quantities of 20 cigarettes or less, except
65manufacturer's free samples authorized under s. 210.04(9), the
66following rates shall govern:
67     (a)  Packages containing 10 cigarettes or less require a
68130.20-cent tax.
69     (b)  Packages containing more than 10 but not more than 20
70cigarettes require a 264.40-cent tax.
71     (6)  All provisions of this chapter apply to the additional
72tax imposed by this section.
73     Section 2.  Section 210.205, Florida Statutes, is created
74to read:
75     210.205  Distribution of additional tax proceeds.--
76     (1)  As collections are received by the division from the
77additional cigarette taxes imposed under s. 210.025, it shall
78pay the same into the Cigarette Tax Collection Trust Fund, and
79the division shall from month to month certify to the Chief
80Financial Officer the amount derived from the cigarette tax
81imposed by s. 210.025, less the service charges provided for in
82s. 215.20, to be allocated as follows:
83     (a)  Sixty percent shall be deposited into the Lawton
84Chiles Endowment Fund until the amount of moneys in the fund
85equals $    million.
86     (b)  Twenty-five percent shall be deposited into the
87Primary Care Services Trust Fund in the Agency for Health Care
88Administration to be distributed to county health department
89clinics, free clinics, and federally qualified health centers.
90     (c)  Three percent shall be deposited into the Domestic
91Violence Trust Fund in the Department of Children and Family
92Services.
93     (d)  Ten percent shall be deposited into the Alcohol, Drug
94Abuse, and Mental Health Trust Fund in the Department of
95Children and Family Services.
96     (e)  Two percent shall be deposited into the Child Welfare
97Training Trust Fund in the Department of Children and Family
98Services.
99     (2)  After the amount of moneys in the Lawton Chiles
100Endowment Fund equals $    million as provided in paragraph
101(1)(a), the division shall from month to month certify to the
102Chief Financial Officer the amount derived from the cigarette
103tax imposed by s. 210.025, less the service charges provided for
104in s. 215.20, to be allocated as follows:
105     (a)  An amount equal to 62.5 percent shall be deposited
106into the Primary Care Services Trust Fund in the Agency for
107Health Care Administration to be distributed to county health
108department clinics, free clinics, and federally qualified health
109centers.
110     (b)  An amount equal to 7.5 percent shall be deposited into
111the Domestic Violence Trust Fund in the Department of Children
112and Family Services.
113     (c)  Twenty-five percent shall be deposited into the
114Alcohol, Drug Abuse, and Mental Health Trust Fund in the
115Department of Children and Family Services.
116     (d)  Five percent shall be deposited into the Child Welfare
117Training Trust Fund in the Department of Children and Family
118Services.
119     Section 3.  The additional tax on cigarettes imposed by s.
120210.025, Florida Statutes, also applies to inventory on hand. By
121March 1, 2009, or the date this act becomes a law, whichever
122occurs later, before opening for business, each manufacturer,
123distributor, wholesaler, and vendor in this state shall take an
124inventory of the cigarettes on hand and subject to tax under s.
125210.02, Florida Statutes, and shall certify the amount of
126inventory to the Division of Alcoholic Beverages and Tobacco of
127the Department of Business and Professional Regulation on or
128before April 20, 2009, accompanied by a certified check, money
129order, or electronic funds transfer for the amount of the
130additional tax imposed by s. 210.025, Florida Statutes, due upon
131such inventory. The provisions of chapter 210, Florida Statutes,
132relating to penalties and interest for delinquent payments shall
133apply to this section. The proceeds of the tax upon inventory
134imposed by this section shall be deposited into the appropriate
135trust fund as specified in s. 210.205(1), Florida Statutes.
136     Section 4.  Subsection (19) of section 210.01, Florida
137Statutes, is amended to read:
138     210.01  Definitions.--When used in this part the following
139words shall have the meaning herein indicated:
140     (19)  "Stamp" or "stamps" means the indicia required to be
141placed on cigarette packages that evidence payment of the taxes
142tax on cigarettes under ss. s. 210.02 and 210.025.
143     Section 5.  Subsections (1) and (2) of section 210.021,
144Florida Statutes, are amended to read:
145     210.021  Payment of taxes by certified check or electronic
146funds transfer.--
147     (1)  The Secretary of Business and Professional Regulation
148may require a dealer who sells cigarettes within the state to
149remit by certified check or electronic funds transfer any taxes
150tax imposed under ss. s. 210.02 and 210.025.
151     (2)  The Secretary of Business and Professional Regulation
152shall require for a period not to exceed 12 months that a dealer
153or agent, during the dealer's or agent's initial period of
154licensure or appointment, remit by certified check or electronic
155funds transfer any taxes tax imposed under ss. s. 210.02 and
156210.025.
157     Section 6.  Subsection (9) of section 210.04, Florida
158Statutes, is amended to read:
159     210.04  Construction; exemptions; collection.--
160     (9)  Agents, located within or without the state, shall
161purchase stamps and affix such stamps in the manner prescribed
162to packages or containers of cigarettes to be sold, distributed,
163or given away within the state, in which case any dealer
164subsequently receiving such stamped packages of cigarettes will
165not be required to purchase and affix stamps on such packages of
166cigarettes. However, the division may, in its discretion,
167authorize manufacturers to distribute in the state free sample
168packages of cigarettes containing not less than 2 or more than
16920 cigarettes without affixing any tax stamps provided copies of
170shipping invoices on such cigarettes are furnished, and payment
171of all taxes imposed on such cigarettes by law is made, directly
172to the division not later than the 10th day of each calendar
173month. The tax on cigarettes in sample packages shall be based
174on a unit in accordance with the taxing provisions of ss. s.
175210.02(1) and 210.025(1).
176     Section 7.  Subsection (5) of section 210.05, Florida
177Statutes, is amended to read:
178     210.05  Preparation and sale of stamps; discount.--
179     (5)  Agents or wholesale dealers may sell stamped but
180untaxed cigarettes to the Seminole Indian Tribe, or to members
181thereof, for retail sale. Agents or wholesale dealers shall
182treat such cigarettes and the sale thereof in the same manner,
183with respect to reporting and stamping, as other sales under
184this part, but agents or wholesale dealers shall not collect
185from the purchaser the taxes tax imposed by ss. s. 210.02 and
186210.025. The purchaser hereunder shall be responsible to the
187agent or wholesale dealer for the services and expenses incurred
188in affixing the stamps and accounting therefor.
189     Section 8.  Paragraph (a) of subsection (1) of section
190210.06, Florida Statutes, is amended to read:
191     210.06  Affixation of stamps; presumption.--
192     (1)  Every dealer within the state shall affix or cause to
193be affixed to such package or container of such cigarettes such
194stamps as are required under this section within 10 days after
195receipt of such products. Dealers outside this state shall affix
196such stamps before the shipment of cigarettes into this state.
197     (a)  A tax stamp shall be applied to all cigarette packages
198intended for sale or distribution to consumers subject to the
199taxes tax imposed under ss. s. 210.02 and 210.025, except as
200otherwise provided in this part.
201     Section 9.  Subsection (2) of section 210.09, Florida
202Statutes, is amended to read:
203     210.09  Records to be kept; reports to be made;
204examination.--
205     (2)  The division is authorized to prescribe and promulgate
206by rules and regulations, which shall have the force and effect
207of the law, such records to be kept and reports to be made to
208the division by any manufacturer, importer, distributing agent,
209wholesale dealer, retail dealer, common carrier, or any other
210person handling, transporting or possessing cigarettes for sale
211or distribution within the state as may be necessary to collect
212and properly distribute the taxes imposed by ss. s. 210.02 and
213210.025. All reports shall be made on or before the 10th day of
214the month following the month for which the report is made,
215unless the division by rule or regulation shall prescribe that
216reports be made more often.
217     Section 10.  Paragraph (a) of subsection (6) of section
218210.18, Florida Statutes, is amended to read:
219     210.18  Penalties for tax evasion; reports by sheriffs.--
220     (6)(a)  Every person, firm, or corporation, other than a
221licensee under the provisions of this part, who possesses,
222removes, deposits, or conceals, or aids in the possessing,
223removing, depositing, or concealing of, any unstamped cigarettes
224not in excess of 50 cartons is guilty of a misdemeanor of the
225second degree, punishable as provided in s. 775.082 or s.
226775.083. In lieu of the penalties provided in those sections,
227however, the person, firm, or corporation may pay the tax plus a
228penalty equal to the amount of the taxes tax authorized under
229ss. s. 210.02 and 210.025 on the unstamped cigarettes.
230     Section 11.  This act shall take effect March 1, 2009.


CODING: Words stricken are deletions; words underlined are additions.