Bill Text: MS SB2462 | 2016 | Regular Session | Introduced
Bill Title: Tobacco Tax Law; retailers may have permit issued under suspended or revoked for defaults in payments to distributors and wholesalers.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-02-23 - Died In Committee [SB2462 Detail]
Download: Mississippi-2016-SB2462-Introduced.html
MISSISSIPPI LEGISLATURE
2016 Regular Session
To: Finance
By: Senator(s) Fillingane
Senate Bill 2462
AN ACT TO AMEND SECTION 27-69-9, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ALL SALES BY A DISTRIBUTOR OR WHOLESALER OF TOBACCO PRODUCTS TO A RETAILER SHALL BE MADE IN CASH OR ON TERMS; TO PROVIDE THAT IF PAYMENT IS NOT RECEIVED WHEN DUE OR PAYMENT IS RETURNED FOR INSUFFICIENT FUNDS, THE VENDOR SHALL NOTIFY THE COMMISSIONER OF REVENUE AND THE COMMISSIONER SHALL PROMPTLY NOTIFY ALL DISTRIBUTORS AND WHOLESALERS IN THE STATE OF THE DEFAULT IN PAYMENT AND THEREAFTER NO DISTRIBUTOR OR WHOLESALER SHALL SELL ANY TOBACCO PRODUCTS TO THE RETAILER WHO IS IN DEFAULT ON ANY TERMS OTHER THAN CASH ON DELIVERY UNTIL OTHERWISE AUTHORIZED BY THE COMMISSIONER; TO PROVIDE FOR SUSPENSION AND REVOCATION OF PERMITS ISSUED UNDER THE TOBACCO TAX LAW FOR CERTAIN VIOLATIONS OF THIS PROVISION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-69-9, Mississippi Code of 1972, is amended as follows:
27-69-9. (1) In
addition to the penalties imposed in this chapter, after the second offense for
any violation, the commissioner may revoke any permit * * * that may have been issued to any
person, or persons, violating any provisions of this chapter, or any rules or
regulations promulgated by the commissioner under authority of this chapter.
(2) (a) No distributor or wholesaler shall sell, offer to sell, or deliver any tobacco products to any retail dealer in this state and no retailer shall buy or accept delivery for any such product for any consideration other than cash or on terms. If payment is not received when due or payment is returned for insufficient funds, the vendor shall, within five (5) business days, notify the commissioner and the commissioner shall promptly notify all distributors and wholesalers in the state of the default in payment and thereafter no person shall sell any tobacco products to the retailer in default on any terms other than cash on delivery until otherwise authorized by the commissioner. Under penalty of suspension of his permit, the retailer who is in default shall pay his obligation in full within thirty (30) days from the date it became due.
(b) Any permittee that violates the provisions of this section may have his permit suspended for not more than thirty (30) days for each offense. Each failure of a retailer to make payment for any default before the expiration of the period of suspension constitutes a separate offense. The commissioner may permanently revoke the permit of any permittee who is suspended for default in payment for more than six (6) months in any twelve (12) month period. In addition, the commissioner may require the retail dealer to make payment in cash for all tobacco products subsequently sold or delivered to him.
(3) The commissioner, in the event a permit is revoked, is required to notify all manufacturers, wholesalers and distributors having a permit required by this chapter, that the permit has been revoked, and such manufacturer, wholesaler and distributor is henceforth prohibited from selling taxable tobacco to such dealer or retailer. The commissioner may notify manufacturers, wholesalers and distributors as required by this paragraph either manually or electronically and shall specify by rule or regulation the method by which the notification shall be made.
SECTION 2. This act shall take effect and be in force from and after July 1, 2016.
