Bill Text: FL S0988 | 2017 | Regular Session | Introduced


Bill Title: Cigarette Surcharge and Tax

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2017-05-05 - Died in Regulated Industries [S0988 Detail]

Download: Florida-2017-S0988-Introduced.html
       Florida Senate - 2017                                     SB 988
       
       
        
       By Senator Farmer
       
       
       
       
       
       34-00828-17                                            2017988__
    1                        A bill to be entitled                      
    2         An act relating to the cigarette surcharge and tax;
    3         amending ss. 210.011 and 210.02, F.S.; revising the
    4         amounts and applicability of the cigarette surcharge
    5         and tax, respectively, which are levied upon the sale,
    6         receipt, purchase, possession, consumption, handling,
    7         distribution, and use of cigarettes; defining the term
    8         “standard package of cigarettes”; conforming
    9         provisions to changes made by the act; making
   10         technical changes; amending s. 210.04, F.S.; deleting
   11         provisions that authorize the Division of Alcoholic
   12         Beverages and Tobacco of the Department of Business
   13         and Professional Regulation to authorize manufacturers
   14         to distribute specified free sample packages of
   15         cigarettes without affixing surcharge and tax stamps
   16         under certain circumstances and that provide the basis
   17         for a certain surcharge and tax; amending ss. 210.06
   18         and 210.085, F.S.; conforming provisions to changes
   19         made by the act; amending s. 215.5602, F.S.;
   20         conforming a cross-reference; providing an effective
   21         date.
   22          
   23  Be It Enacted by the Legislature of the State of Florida:
   24  
   25         Section 1. Section 210.011, Florida Statutes, is amended to
   26  read:
   27         210.011 Cigarette surcharge levied; collection.—
   28         (1) A surcharge of $2, in addition to all other taxes of
   29  every kind levied by law, is levied upon the sale, receipt,
   30  purchase, possession, consumption, handling, distribution, and
   31  use of cigarettes in this state, in the following amounts,
   32  except as otherwise provided in subsections (2)-(5), for a
   33  standard package of cigarettes. For purposes of this section,
   34  the term “standard package of cigarettesmeans a package of no
   35  fewer than 20 cigarettes, as required under 21 C.F.R. s.
   36  1140.16(b) of standard dimensions:
   37         (a) Upon all cigarettes weighing not more than 3 pounds per
   38  thousand, 5 cents on each cigarette.
   39         (b) Upon all cigarettes weighing more than 3 pounds per
   40  thousand and not more than 6 inches long, 10 cents on each
   41  cigarette.
   42         (c) Upon all cigarettes weighing more than 3 pounds per
   43  thousand and more than 6 inches long, 20 cents on each
   44  cigarette.
   45         (2) An additional surcharge of 4.2 cents is levied upon
   46  each The descriptions of cigarettes contained in subsection (1)
   47  are declared to be standard as to dimensions for the purpose of
   48  levying a surcharge as provided in this section. If any
   49  cigarette that is received, purchased, possessed, sold, offered
   50  for sale, given away, or used in a package which is of a size
   51  other than a standard package of cigarettes those standard
   52  dimensions, the cigarette is subject to a surcharge at the rate
   53  of 4.2 cents on each cigarette.
   54         (3) When cigarettes as described in paragraph (1)(a) are
   55  packed in varying quantities of 20 cigarettes or fewer, except
   56  the manufacturer’s free samples authorized under s. 210.04(9),
   57  the following rates shall govern:
   58         (a) Packages containing 10 cigarettes or fewer require a
   59  surcharge of 50 cents.
   60         (b) Packages containing more than 10 but not more than 20
   61  cigarettes require a surcharge of $1.
   62         (4) When cigarettes as described in paragraph (1)(b) are
   63  packed in varying quantities of 20 cigarettes or fewer, except
   64  the manufacturer’s free samples authorized under s. 210.04(9),
   65  the following rates shall govern:
   66         (a) Packages containing 10 cigarettes or fewer require a
   67  surcharge of $1.
   68         (b) Packages containing more than 10 but not more than 20
   69  cigarettes require a surcharge of $2.
   70         (5) When cigarettes as described in paragraph (1)(c) are
   71  packed in varying quantities of 20 cigarettes or fewer, except
   72  the manufacturer’s free samples authorized under s. 210.04(9),
   73  the following rates shall govern:
   74         (a) Packages containing 10 cigarettes or fewer require a
   75  surcharge of $2.
   76         (b) Packages containing more than 10 but not more than 20
   77  cigarettes require a surcharge of $4.
   78         (3)(6) This surcharge shall be paid by the dealer to the
   79  division for deposit and distribution as hereinafter provided
   80  upon the first sale or transaction within the state, whether
   81  such sale or transfer is to the ultimate purchaser or consumer.
   82  The seller or dealer shall collect the surcharge from the
   83  purchaser or consumer, and the purchaser or consumer shall pay
   84  the surcharge to the seller. The seller or dealer is responsible
   85  for the collection of the surcharge and payment of the surcharge
   86  to the division. All surcharges are due not later than the 10th
   87  day of the month following the calendar month in which they were
   88  incurred, and thereafter shall bear interest at the rate of 1
   89  percent per month. If the amount of surcharge due for a given
   90  period is assessed without allocating it to any particular
   91  month, the interest begins accruing on the date of the
   92  assessment. Whenever cigarettes are shipped from outside the
   93  state to anyone other than a distributing agent or wholesale
   94  dealer, the person receiving the cigarettes is responsible for
   95  the surcharge on the cigarettes and payment of the surcharge to
   96  the division.
   97         (4)(7) It is the legislative intent that the surcharge on
   98  cigarettes be uniform throughout the state.
   99         (5)(8) The surcharge levied under this section shall be
  100  administered, collected, and enforced in the same manner as the
  101  tax imposed under s. 210.02.
  102         (6)(9) Revenue produced from the surcharge levied under
  103  this section shall be deposited into the Health Care Trust Fund
  104  within the Agency for Health Care Administration.
  105         Section 2. Section 210.02, Florida Statutes, is amended to
  106  read:
  107         210.02 Cigarette tax imposed; collection.—
  108         (1) An excise or privilege tax of 33.9 cents, in addition
  109  to all other taxes of every kind imposed by law, is imposed upon
  110  the sale, receipt, purchase, possession, consumption, handling,
  111  distribution, and use of cigarettes in this state, in the
  112  following amounts, except as hereinafter otherwise provided, for
  113  a standard package of cigarettes. For purposes of this section,
  114  the term “standard package of cigarettes” means a package of no
  115  fewer than 20 cigarettes, as required under 21 C.F.R. s.
  116  1140.16(b) of standard dimensions:
  117         (a) Upon all cigarettes weighing not more than 3 pounds per
  118  thousand, 16.95 mills on each cigarette.
  119         (b) Upon all cigarettes weighing more than 3 pounds per
  120  thousand and not more than 6 inches long, 33.9 mills on each
  121  cigarette.
  122         (c) Upon all cigarettes weighing more than 3 pounds per
  123  thousand and more than 6 inches long, 67.8 mills on each
  124  cigarette.
  125         (2) An additional tax of 1.41 cents is imposed upon each
  126  The description of cigarettes contained in paragraphs (a), (b),
  127  and (c) of subsection (1) are hereby declared to be standard as
  128  to dimensions for taxing purposes as provided in this law and
  129  should any cigarette that is be received, purchased, possessed,
  130  sold, offered for sale, given away, or used in a package of a
  131  size other than a standard package of cigarettes of standard
  132  dimensions, the same shall be taxed at the rate of 1.41 cents on
  133  each such cigarette.
  134         (3) When cigarettes as described in paragraph (1)(a) are
  135  packed in varying quantities of 20 cigarettes or less, except
  136  manufacturer’s free samples authorized under s. 210.04(9), the
  137  following rate shall govern:
  138         (a) Packages containing 10 cigarettes or less require a
  139  16.95-cent tax.
  140         (b) Packages containing more than 10 but not more than 20
  141  cigarettes require a 33.9-cent tax.
  142         (4) When cigarettes as described in paragraph (1)(b) are
  143  packed in varying quantities of 20 cigarettes or less, except
  144  manufacturer’s free samples authorized under s. 210.04(9), the
  145  following rates shall govern:
  146         (a) Packages containing 10 cigarettes or less require a
  147  33.9-cent tax.
  148         (b) Packages containing more than 10 but not more than 20
  149  cigarettes require a 67.8-cent tax.
  150         (5) When cigarettes as described in paragraph (1)(c) are
  151  packed in varying quantities of 20 cigarettes or less, except
  152  manufacturer’s free samples authorized under s. 210.04(9), the
  153  following rates shall govern:
  154         (a) Packages containing 10 cigarettes or less require a
  155  67.8-cent tax.
  156         (b) Packages containing more than 10 but not more than 20
  157  cigarettes require a 135.6-cent tax.
  158         (3)(6) This tax shall be paid by the dealer to the division
  159  for deposit and distribution as hereinafter provided upon the
  160  first sale or transaction within the state, whether or not such
  161  sale or transfer is be to the ultimate purchaser or consumer.
  162  The seller or dealer shall collect the tax from the purchaser or
  163  consumer, and the purchaser or consumer shall pay the tax to the
  164  seller. The seller or dealer is shall be responsible for the
  165  collection of the tax and the payment of the tax same to the
  166  division. All taxes are due not later than the 10th day of the
  167  month following the calendar month in which they were incurred,
  168  and thereafter shall bear interest at the rate of 1 percent per
  169  month. If the amount of tax due for a given period is assessed
  170  without allocating it to any particular month, the interest
  171  begins accruing on shall begin with the date of the assessment.
  172  Whenever cigarettes are shipped from outside the state to anyone
  173  other than a distributing agent or wholesale dealer, the person
  174  receiving the cigarettes is shall be responsible for the tax on
  175  the said cigarettes and the payment of the tax same to the
  176  division.
  177         (4)(7) It is the legislative intent that the tax on
  178  cigarettes shall be uniform throughout the state.
  179         Section 3. Subsection (9) of section 210.04, Florida
  180  Statutes, is amended to read:
  181         210.04 Construction; exemptions; collection.—
  182         (9) Agents, located within or without the state, shall
  183  purchase stamps and affix such stamps in the manner prescribed
  184  to packages or containers of cigarettes to be sold, distributed,
  185  or given away within the state, in which case any dealer
  186  subsequently receiving such stamped packages of cigarettes will
  187  not be required to purchase and affix stamps on such packages of
  188  cigarettes. However, the division may, in its discretion,
  189  authorize manufacturers to distribute in the state free sample
  190  packages of cigarettes containing not less than 2 or more than
  191  20 cigarettes without affixing any surcharge and tax stamps
  192  provided copies of shipping invoices on such cigarettes are
  193  furnished, and payment of all surcharges and taxes imposed on
  194  such cigarettes by law is made, directly to the division not
  195  later than the 10th day of each calendar month. The surcharge
  196  and tax on cigarettes in sample packages shall be based on a
  197  unit in accordance with the surcharges levied under s.
  198  210.011(1) and the taxing provisions of s. 210.02(1).
  199         Section 4. Subsection (5) of section 210.06, Florida
  200  Statutes, is amended to read:
  201         210.06 Affixation of stamps; presumption.—
  202         (5) Except as provided in s. 210.04(9) or s. 210.09(1), no
  203  person, other than a dealer or distributing agent that receives
  204  unstamped cigarette packages directly from a cigarette
  205  manufacturer or importer in accordance with this section and s.
  206  210.085, shall hold or possess an unstamped cigarette package.
  207  Dealers shall be permitted to set aside, without application of
  208  stamps, only such part of the dealer’s stock which that is
  209  identified for sale or distribution outside this state. If a
  210  dealer maintains stocks of unstamped cigarette packages, such
  211  unstamped packages shall be stored separately from stamped
  212  product packages. No unstamped cigarette packages shall be
  213  transferred by a dealer to another facility of the dealer within
  214  this state or to another person within this state.
  215         Section 5. Section 210.085, Florida Statutes, is amended to
  216  read:
  217         210.085 Transactions only with permitted manufacturers,
  218  importers, distributing agents, dealers, and retail dealers.
  219  Except as otherwise provided in s. 210.04(9), A manufacturer or
  220  importer, or a distributing agent representing a manufacturer or
  221  importer, may sell or distribute cigarettes to a person located
  222  or doing business within this state only if such person is a
  223  dealer or importer with a valid, current permit under s. 210.15.
  224  A distributing agent may accept cigarettes from a manufacturer
  225  or importer with a valid, current permit for transfer to a
  226  dealer with a valid, current permit but may not own or sell
  227  cigarettes. A dealer may sell or distribute cigarettes to a
  228  person located or doing business within this state only if such
  229  person is a dealer or retail dealer with a valid, current permit
  230  under s. 569.003. A dealer may obtain cigarettes only from a
  231  manufacturer or importer or from a distributing agent or dealer
  232  with a valid, current permit under s. 210.15. A retail dealer
  233  may obtain cigarettes only from a dealer with a valid, current
  234  permit under s. 210.15.
  235         Section 6. Paragraph (a) of subsection (12) of section
  236  215.5602, Florida Statutes, is amended to read:
  237         215.5602 James and Esther King Biomedical Research
  238  Program.—
  239         (12)(a) Each fiscal year, $25 million from the revenue
  240  deposited into the Health Care Trust Fund pursuant to ss.
  241  210.011(6) and 210.276(7) ss. 210.011(9) and 210.276(7) shall be
  242  reserved for research of tobacco-related or cancer-related
  243  illnesses. Of the revenue deposited in the Health Care Trust
  244  Fund pursuant to this section, $25 million shall be transferred
  245  to the Biomedical Research Trust Fund within the Department of
  246  Health. Subject to annual appropriations in the General
  247  Appropriations Act, $5 million shall be appropriated to the
  248  James and Esther King Biomedical Research Program, and $5
  249  million shall be appropriated to the William G. “Bill” Bankhead,
  250  Jr., and David Coley Cancer Research Program created under s.
  251  381.922.
  252         Section 7. This act shall take effect July 1, 2017.

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