An Act To Modify the Process Regarding the Return of Unfit Tobacco Products
Maine Legislature, Session 125, LD 0617
Committee Amendment CA_A-SA_A_S349 (Senate)
Amends: 36 MRSA §4366-A, 36 MRSA §4404

SENATE AMENDMENT" Pc" to COMMITTEE AMENDMENT "A" to S.P. 198, 
L.D. 617, Bill, "An Act To Modify the Process Regarding the Return of Unfit Tobacco 
Products" 
Amend the amendment by striking out everything after the title and before the 
summary and inserting the following: 
'Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRS A §4366-A, sub-§4-A, as amended by PL 2007, c. 438, §95, is 
further amended to read: 
4-A. Redemption of stamps before July 1, 2012. +he Before July 1, 2012, the 
assessor shall redeem any unused, uncancelled stamps presented within one year of the 
date of purchase by a licensed distributor at a price equal to the amount paid for them. 
Credit for uncancelled stamps is allowed only on full, unopened rolls unless the 
distributor ceases business as a distributor and returns the license issued under section 
4362-A. The assessor may also redeem, at face value, cigarette tax stamps affixed to 
packages of cigarettes that have become unsalable if application is made within 90 days 
of the return of the unsalable cigarettes to the manufacturer. 
Sec. 2. 36 MRSA §4366-A, sub-§4-B is enacted to read: 
4-B. Redemption of stamps beginning July 1,2012. Beginning July 1, 2012, the 
assessor shall redeem any unused, uncancelled stamps presented within one year of the 
date of purchase by a licensed distributor at a price equal to the amount paid for them. 
Credit for uncancelled stamps is allowed only on full, unopened rolls unless the 
distributor ceases business as a distributor and returns the license issued under section 
4362-A. The assessor may also redeem, at face value, cigarette tax stamps affixed to 
packages of cigarettes that have become unsalable if application is made within 90 days 
of the return of the unsalable cigarettes to the manufacturer or of the destruction of the 
unsalable cigarettes by the distributor. The assessor may either witness the destruction of 
the unsalable cigarettes or may accept another form of proof that the unsalable cigarettes 
have been destroyed by the distributor or returned to the manufacturer. 
SENATE AMENDMENT 
,.. d. 40· 
SENATE AMENDMENT" A" to COMMITTEE AMENDMENT "A" to S.P. 198, L.D. 617 
Sec. 3. 36 MRSA §4404, 2nd~, as amended by PL 2007, c. 438, §102, is further 
amended to read: 
+he Before July 1, 2012, the return must include further information as the assessor 
may prescribe and must show a credit for any tobacco products exempted as provided in 
section 4403. Records must be maintained to substantiate the exemption. Tax previously 
paid on tobacco products that are returned to a manufacturer because the product has 
become unfit for use, sale or consumption may be taken as a credit on a subsequent return 
upon receipt of the credit notice from the original supplier. 
Sec. 4. 36 MRS A §4404, as amended by PL 2009, c. 213, Pt. H, §2, is further 
amended by adding after the 2nd paragraph a new paragraph to read: 
Beginning July 1, 2012, the return must include further information as the assessor 
may prescribe and must show a credit for any tobacco products exempted as provided in 
section 4403. Records must be maintained to substantiate the exemption. Tax previously 
paid on tobacco products that are returned to a manufacturer or a distributor because the 
product has become unfit for use, sale or consumption and for tobacco products that are 
returned to a distributor that are subsequently destroyed by the distributor may be taken 
as a credit on a subsequent return. The assessor may either witness the destruction of the 
product or may accept another form of proof that the product has been destroyed by the 
distributor or returned to the manufacturer.' , 
SUMMARY 
The amendment delays until July 1, 2012 the implementation of a credit for tax 
previously paid on tobacco products or cigarettes that are returned to a distributor because 
the products have become unfit for use, sale or consumption and are subsequently 
destroyed by the distributor. 
FISCAL NOTE REQUIRED 
(See attacbed) 
SPONSORED BY: 
~ \<--Y ~ 
1ft-
(Senator ROSEN, R.) 
COUNTY: Hancock 
SENATE AMENDMENT 
Approved: 06/24111 
;tJyac 
LD617 
LR 1335(04) 
An Act To Modify the Process Regarding the Return of Unfit Tobacco Products 
Fiscal Note for Senate Amendment" A" to Committee Amendmenf"A" 
Sponsor: Sen. Rosen of Hancock 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
FY 2012-13 
Projections 
FY 2013-14 
Projections 
FY 2014-15 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Fiscal Detail and Notes 
($40,000) 
$0 
$0 
$40,000 
$0 
$0 
This amendment delays the effective date for permitting the State Tax Assessor to recognize a credit for tobacco 
products taxes previously paid and to redeem cigarette tax stamps for tobacco products that are destroyed by a 
distributor because the products have become unfit for use, sale or consumption. This will eliminate the fiscal year 
2011-12 General Fund revenue loss of $40,000. 
LRI335(04) - Fiscal Note - Page 1 of 1 
$0 
$0