Source: http://www.cultureandtourism.org/drs/cwp/view.asp?A=1510&Q=446976
Timestamp: 2018-01-23 13:51:02
Document Index: 33066759

Matched Legal Cases: ['§106', '§12', '§104', '§12', '§105', '§12', '§107']

DRS: IP 2009(28), Q & A on the Cigarette Tax Increase Effective October 1, 2009, for Licensed Cigarette Dealers
IP 2009(28)
Q & A on the Cigarette Tax Increase Effective
October 1, 2009 for Licensed Cigarette Dealers
Purpose: This Informational Publication describes recently enacted legislation increasing the cigarette tax rate effective October 1, 2009. The legislation also imposes a tax, as of the close of business on September 30, 2009, on each licensed cigarette dealers inventory of packages of cigarettes, including those in cartons, that have an old cigarette tax stamp attached.
Statutory Authority: 2009 Conn. Pub. Acts 3, §106, (June 2009 Spec. Sess.); Conn. Gen. Stat. §12-296, as amended by 2009 Conn. Pub. Acts 3, §104, (June 2009 Spec. Sess.); Conn. Gen. Stat. §12-316, as amended by 2009 Conn. Pub. Acts 3, §105, (June 2009 Spec. Sess.); and Conn. Gen. Stat. §12-330c, as amended by 2009 Conn. Pub. Acts 3, §107, (June 2009 Spec. Sess.).
Cigarette Tax Rate Increase: The cigarette tax rate will increase from 100 mills (.10¢) to 150 mills (.15¢) per cigarette on October 1, 2009.
Tax before 10-01-2009 Tax on or after 10-01-2009
Tax on Cigarette Inventory as of Close of Business on September 30, 2009: As of the close of business on September 30, 2009, if you have any packages of cigarettes, including those in cartons, that have an old cigarette tax stamp attached to them, you are liable for a tax (known as a floor tax) on those packages. The floor tax is the difference between the old cigarette tax rate and the new cigarette tax rate.
Close of Business on September 30, 2009: If your business closes after 11:59 p.m. on September 30, 2009, you must take the cigarette inventory as of 11:59 p.m. on September 30, 2009.
You must take an inventory as of the close of business on September 30, 2009. The inventory must include a physical count of all packages of cigarettes, including those in cartons, that have an old cigarette tax stamp attached. This inventory must also include promotional packages of cigarettes that have an old cigarette tax stamp attached. You must immediately enter this information on to Schedule A, which is located on the back of Form FT-TFT, Floor Tax Form for Cigarette Tax, follow the instructions and sign the report. (See Question 4 for information on filing the report.)
Old cigarette tax stamp means either a yellow $2.00 Connecticut cigarette tax stamp (for packages of 20 cigarettes) or a blue $2.50 Connecticut cigarette tax stamp (for packages of 25 cigarettes).
2. Am I required to purchase and affix floor tax stamps to packages of cigarettes in inventory as of the close of business on September 30, 2009?
You are not required to purchase and affix floor tax stamps to packages of cigarettes in your inventory as of the close of business on September 30, 2009.
3. What if I have packages of cigarettes in inventory at the close of business on September 30, 2009, that have new cigarette tax stamps already attached?
Do not include in your inventory any packages of cigarettes that have a new cigarette tax stamp attached. New cigarette tax stamp means either an orange $3.00 Connecticut cigarette tax stamp for packages of 20 cigarettes or a green $3.75 Connecticut cigarette tax stamp for packages of 25 cigarettes.
You must complete and sign Form FT-TFT as of the close of business on September 30, 2009, and keep a copy of the signed Form FT-TFT on your premises for inspection by Department of Revenue Services (DRS) agents.
You must file the original Form FT-TFT and pay the tax to DRS no later than November 16, 2009. You must file Form FT-TFT whether or not you have packages of cigarettes in your inventory that have old cigarette tax stamps attached. If you fail to file Form FT-TFT with DRS on or before November 16, 2009, your dealer’s license may be revoked.
You must pay the floor tax on or before November 16, 2009. The tax is due on each package of cigarettes, including those in cartons, that you have in inventory as of the close of business on September 30, 2009, which have an old cigarette tax stamp attached. If you fail to pay the floor tax, your dealer’s license may be revoked.
Make your check payable to Commissioner of Revenue Services and remit the tax with Form FT-TFT on or before November 16, 2009. Mail your payment and Form FT-TFT to:
DRS audit and enforcement personnel will be out in force to verify that you correctly accounted for the inventory of packages of cigarettes, including those in cartons, that have old cigarette tax stamps attached as of the close of business on September 30, 2009. If you fail to report and pay the correct amount of floor tax, you will be subject to penalty and interest. The penalty for willfully delivering a false return to DRS is a fine of not more than $5,000, or imprisonment for not more than five years, or both.
Tobacco products tax increase effective October 1, 2009.
The tobacco products tax will increase from 20% of the wholesale sales price to 27.5%. The tax rate on snuff tobacco products will increase from 40¢ per ounce to 55¢ per ounce. There is no floor tax on the tobacco products held in inventory by the tobacco products distributors and cigarette dealers.
Issued: 09-15-09