59-14-205 - Stamping procedure -- Rules -- Exceptions -- Penalty -- Collection procedure. - Utah Statutes

59-14-205. Stamping procedure -- Rules -- Exceptions -- Penalty -- Collectionprocedure.
(1) In the case of manufacturers, jobbers, importers, distributors, wholesalers, andretailers, the taxes imposed on cigarettes by this chapter shall be paid by affixing stamps in themanner and at the time prescribed in this section.
(2) All manufacturers, importers, distributors, wholesalers, and retailers shall securelyaffix the stamps to each individual package or container of cigarettes sold in the state, and maynot sell or provide cigarette stamps to any other person.
(3) (a) Stamps shall be securely affixed to each individual package of cigarettes within72 hours after the cigarettes are received within the state.
(b) All cigarettes shall be stamped before sale within the state.
(c) Cigarettes manufactured within the state shall be stamped by the manufacturer whenand as sold.
(4) The commission may, if it is practical and reasonable for the enforcement of thecollection of taxes, make rules in accordance with Title 63G, Chapter 3, Utah AdministrativeRulemaking Act, to permit cigarettes to remain unstamped until the original case or crate isbroken, unpacked, or sold.
(5) The commission may permit a person to sell and export cigarettes to a regular dealerin cigarettes outside the state without affixing stamps.
(6) (a) If cigarettes are allowed to remain unstamped under Subsection (4) or (5), thecommission may require the person holding the unstamped cigarettes to secure a surety bondfrom a surety company authorized to do business in this state.
(b) The surety bond described in Subsection (6)(a) shall be conditioned to secure thepayment of all taxes and penalties provided in this chapter.
(7) A manufacturer, jobber, importer, distributor, wholesaler, or retailer may not remove,conceal, or obscure a cigarette package:
(a) notice described under Subsection 59-14-210(1)(a)(i); or
(b) warning label that is placed on the package in compliance with the Federal CigaretteLabeling and Advertising Act, 15 U.S.C. Sec. 1333.
(8) (a) Any person failing to properly affix and cancel stamps to the cigarettes, under thissection and rules promulgated by the commission, may be required by the commission to pay aspart of the tax, and in addition to any other penalty provided in this chapter, a penalty of $25 foreach offense, to be assessed and collected by the commission in accordance with Chapter 1, Part14, Assessment, Collections, and Refunds Act.
(b) Each article, package, or container found not having proper stamps affixed to thearticle, package, or container is a separate offense.
(c) The presence of any package or container in a place of business conducting retailsales shall be prima facie evidence that it is intended for sale and subject to taxes under thischapter.

Amended by Chapter 212, 2009 General Session