59-14-302 - Tax basis -- Rates. - Utah Statutes

59-14-302. Tax basis -- Rates.
(1) As used in this section:
(a) "Manufacturer's sales price" means the amount the manufacturer of a tobacco productcharges after subtracting a discount.
(b) "Manufacturer's sales price" includes an original Utah destination freight charge,regardless of:
(i) whether the tobacco product is shipped f.o.b. origin or f.o.b. destination; or
(ii) who pays the original Utah destination freight charge.
(2) There is levied a tax upon the sale, use, or storage of tobacco products in the state.
(3) The tax levied under Subsection (2) shall be paid by the manufacturer, jobber,distributor, wholesaler, retailer, user, or consumer.
(4) The rate of the tax under this section is, beginning on July 1, 2010:
(a) for tobacco products except for moist snuff, .86 multiplied by the manufacturer's salesprice; and
(b) subject to Subsection (5), for moist snuff, $1.83 per ounce.
(5) (a) The tax under this section on moist snuff shall be imposed on the basis of the netweight of the moist snuff as listed by the manufacturer.
(b) If the net weight of moist snuff is in a quantity that is a fractional part of one ounce, aproportionate amount of the tax described in Subsection (4)(b) is imposed:
(i) on that fractional part of one ounce; and
(ii) in accordance with rules made by the commission in accordance with Title 63G,Chapter 3, Utah Administrative Rulemaking Act.
(6) (a) Moisture content of a tobacco product is determined at the time of packaging.
(b) A manufacturer who distributes a tobacco product in, or into, Utah, shall:
(i) for a period of three years after the last day on which the manufacturer distributes thetobacco product in, or into, Utah, keep valid scientific evidence of the moisture content of thetobacco product available for review by the commission, upon demand; and
(ii) provide a document, to the person described in Subsection (3) to whom themanufacturer distributes the tobacco product, that certifies the moisture content of the tobaccoproduct, as verified by the scientific evidence described in Subsection (6)(b)(i).
(c) A manufacturer who fails to comply with the requirements of Subsection (6)(b) isliable for the nonpayment or underpayment of taxes on the tobacco product by a person whorelies, in good faith, on the document described in Subsection (6)(b)(ii).
(d) A person described in Subsection (3) who is required to pay tax on a tobacco product:
(i) shall, for a period of three years after the last day on which the person pays the tax onthe tobacco product, keep the document described in Subsection (6)(b)(ii) available for review bythe commission, upon demand; and
(ii) is not liable for nonpayment or underpayment of taxes on the tobacco product due tothe person's good faith reliance on the document described in Subsection (6)(b)(ii).

Amended by Chapter 115, 2010 General Session
Amended by Chapter 407, 2010 General Session, (Coordination Clause)
Amended by Chapter 415, 2010 General Session