Bill Text: NJ S384 | 2010-2011 | Regular Session | Introduced
Bill Title: Requires licenses to conduct business in tobacco products under the New Jersey Tobacco Products Wholesale Sales and Use Tax Act.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2010-01-12 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S384 Detail]
Download: New_Jersey-2010-S384-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Senator ROBERT W. SINGER
District 30 (Burlington, Mercer, Monmouth and Ocean)
Senator JEFF VAN DREW
District 1 (Cape May, Atlantic and Cumberland)
Co-Sponsored by:
Senator A.R.Bucco
SYNOPSIS
Requires licenses to conduct business in tobacco products under the New Jersey Tobacco Products Wholesale Sales and Use Tax Act.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act requiring licenses under the "Tobacco Products Wholesale Sales and Use Tax Act," and amending P.L.1990, c.39.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 6 of P.L.1990, c.39 (C.54:40B-6) is amended to read as follows:
6. a. [Within 15 days from the effective date of this act, or in] In the case of manufacturers, distributors, [or] wholesalers or retail dealers commencing business or opening new places of business [after that] on or after the effective date of P.L. , c. (pending before the Legislature as this bill), within three days after the commencement or opening, every distributor or wholesaler required to pay the taxes imposed by this act and every manufacturer or retail dealer who sells tobacco products shall file with the director [a certificate of registration] an application for the applicable license in a form prescribed by the director [unless] which shall be in addition to a certificate of authority has been previously issued to any distributor or wholesaler. The director shall issue, without charge, to each [registrant] manufacturer, distributor, and wholesaler a certificate of authority requiring the [registrant] licensee to pay the tax and a duplicate thereof for each additional place of business of the [registrant] licensee. Each certificate or duplicate shall state the place of business to which it is applicable. The certificate of authority shall be prominently displayed in the place of business of the [registrant] licensee. Certificates shall be nonassignable and nontransferable and shall be surrendered to the director immediately upon the [registrant's] licensee's ceasing to do business at the place named.
b. On and after the effective date of P.L. , c. (pending before the Legislature as this bill), no person who is a manufacturer, distributor, or wholesaler shall engage in such business without having first obtained the appropriate license for that purpose as prescribed by this act. All licenses shall be issued by the director, who shall make rules and regulations respecting applications therefor and issuance thereof, which may include, in the discretion of the director, requirements based upon the provisions of subsections a. through f. of section 202 of P.L.1948, c.65 (C.54:40A-4).
c. Each such license shall lapse on March 31 of the period for which it is issued, and each such license shall be continued annually upon the conditions that the licensee shall have paid the required fee and complied with all the provisions of this act and the rules and regulations of the director made pursuant thereto.
d. For each license issued to a manufacturer, and for each continuance thereof, there shall be paid to the director a fee of $350.
For each license issued to a distributor there shall be paid to the director a fee of $350. If a distributor sells or intends to sell tobacco products at two or more places of business, whether established or temporary, a separate license shall be required for each place of business. Each license, or certificate thereof, and such other evidence of license shall be exhibited in the place of business for which it is issued and in such manner as may be prescribed by the director. The director shall require each licensed distributor to file with him a bond in an amount not less than $6,000 to guarantee the proper performance of his duties and the discharge of his liabilities under this act. The bond shall be executed by such licensed distributor as principal, and by a corporation approved by the director and duly authorized to engage in business as a surety company in the State of New Jersey, as surety. The bond shall run concurrently with the distributor's license.
For each license issued to a wholesale dealer there shall be paid to the director a fee of $250. If a wholesale dealer sells or intends to sell tobacco products at two or more places of business, whether established or temporary, a separate license shall be required for each place of business. Each license, or certificate thereof, and such other evidence of license shall be exhibited in the place of business for which it is issued and in such manner as may be prescribed by the director.
For each license issued to a retail dealer and for each continuance thereof, there shall be paid to the director a fee of $50 each year. Of the license fee $40 shall be credited to the special projects and development fund in the Department of Health and Senior Services established pursuant to section 7 of P.L.1966, c.36 (C.26:2F-7) for the purposes specified therein. The director shall determine and certify to the State Treasurer on a monthly basis the amount of revenues collected by the director which are to be credited to the special projects and development fund in the Department of Health and Senior Services.
If a retail dealer sells or intends to sell tobacco products at two or more places of business, whether established or temporary, or whether in the same building or not, a separate license shall be required for each place of business. Each license, or certificate thereof, and such other evidence of license shall be exhibited in the place of business for which it is issued and in such manner as may be prescribed by the director.
Any person licensed only as a distributor or as a manufacturer or as a wholesale dealer or as a retail dealer shall not operate in any other capacity except under that for which he is licensed herein, unless the appropriate license or licenses therefor are first secured.
No license shall be issued to any person except upon the payment of the full fee therefor, any statute or exemption to the contrary notwithstanding. No license shall be assignable or transferable, except as hereinafter provided, but in the case of death, bankruptcy, receivership, or incompetency of the licensee, or if for any other reason whatsoever the business of the licensee shall devolve upon another by operation of law, the director may, in his discretion, extend said license for a limited time to the executor, administrator, trustee, receiver, or person upon whom the same has devolved. A purchaser or assignee of a licensed wholesaler or licensed distributor, or any other person upon whom the business of a licensed wholesaler or licensed distributor shall devolve by operation of law, shall upon application to the director, be entitled to an assignment or transfer of the wholesale or distributor license for the balance of the existing license period upon payment of a transfer fee of $5 and subject to his qualification to be a licensed wholesaler or licensed distributor under the provisions of this act. No refund of the license fee shall be paid to any person upon the surrender or revocation of any license except a license fee paid or collected in error. But, upon payment of a $5 fee, there may be obtained (1) a duplicate license, or certificate thereof, in the event the original is lost, destroyed or defaced, and (2) an amended license, or certificate thereof, upon a change in the location of the place of business of any distributor or dealer.
e. The director shall require an applicant for a tobacco products retail dealer license, to include on the application the address of the place of business where the tobacco products will be sold. If the place of business is moved to a different address than that provided on the license application, the licensee shall notify the director within 30 days of the change of address.
(cf: P.L.2001, c.448, s.5)
2. Section 8 of P.L.1990, c.39 (C.54:40B-8) is amended to read as follows:
8. a. Every distributor or wholesaler required to pay tax under this act shall on or before August 20, 1990, and on or before the 20th day of each month thereafter, make and file a return for the preceding month with the director. The return shall show the total amount of wholesale price paid for sales to the distributor or wholesaler for tobacco products that are payable during the period and the amount of taxes required to be paid with respect to such amount. The return shall also reflect any use tax due.
b. The director may permit or require returns to be made covering other periods and upon such dates as the director may specify. In addition, the director may require payments of tax liability at such intervals and based upon such classifications as the director may designate. In prescribing other periods to be covered by the return or intervals or classifications for payment of tax liability, the director may take into account the dollar volume of tax involved as well as the need for ensuring the prompt and orderly collection of the taxes imposed.
c. The form of returns shall be prescribed by the director and shall contain such information as the director may deem necessary for the proper administration of this act. The director may require amended returns to be filed within 20 days after notice and to contain the information specified in the notice.
d. The director may require that in addition to any return required to be filed, each licensee file a report quarterly upon such dates as the director may specify, concerning, but not limited to, amounts and quantities of purchases and sales of tobacco products and the prices paid and collected thereon for each type of tobacco product and for each premise of the licensee to ensure the proper administration of this act.
(cf: P.L.2001, c.448, s.7)
3. This act shall take effect immediately but remain inoperative until the first day of the fourth month following enactment.
STATEMENT
This bill requires a person to apply for and be issued a license before engaging in the business of a manufacturer, distributor, wholesaler or retailer of tobacco products under the New Jersey Tobacco Products Wholesale Sales and Use Tax Act. Currently, a tax license is not required for conducting such sales of cigars, chewing tobacco, pipe tobacco, etc. The license will be in addition to the certificate of authority to collect the tax and will allow the Director of the Division of Taxation the ability to conduct the same review of the background and qualifications of such businesses as under the cigarette tax act. The director will have the authority to issue the license and make rules and regulations concerning same.
