2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 24 - Tobacco Tax › § 47–2404. Licenses

§ 47–2404. Licenses.
(a) No person shall manufacture for sale, keep for sale, offer for sale, display for sale in vending machines, or sell cigarettes or other tobacco product in the District without having first obtained a license or licenses for such purpose or purposes from the Mayor.
(b) The Mayor may issue the following types of licenses, upon the filing of an application as prescribed by the Mayor:
(1) Wholesaler’s licenses. — A wholesaler’s license shall authorize the licensee to manufacture, purchase, or otherwise acquire cigarettes or other tobacco product and to keep for sale, offer for sale, and sell such cigarettes or other tobacco product in original packages to consumers, to persons holding a license under this chapter as a wholesaler, retailer, or vending machine operator, and to persons for resale in other states or jurisdictions; provided, that with respect to sales made to persons for resale in other states or jurisdictions, such persons must be licensed under the laws of such other state or jurisdiction to engage in the business of selling cigarettes or other tobacco product therein. A wholesaler’s license shall authorize the licensee to manufacture, keep for sale, offer for sale, and sell cigarettes or other tobacco product only at the place or places designated therein. Except as provided by the Mayor by regulation, a separate license shall be required for each place where cigarettes or other tobacco product are to be manufactured, kept for sale, offered for sale, or sold. The Mayor may provide, by regulation, for the issuance of a wholesaler’s license for a place located outside of the District. The annual fee for a wholesaler’s license shall be $50 for each place designated therein.
(2) Retailer’s licenses. — A retailer’s license shall authorize the licensee to keep for sale, offer for sale, and sell cigarettes or other tobacco product to consumers in original packages from the place or places designated therein. A retailer’s license shall not authorize the licensee to sell cigarettes or other tobacco product to other licensees for resale. Except as provided by the Mayor by regulation, a separate license shall be required for each retail establishment. The annual fee for a retailer’s license shall be $15 for each retail establishment.
(3) Vending machine operator’s licenses restricted.
(A) No license shall be issued for the sale of cigarettes or other tobacco product in an original package from or by means of a vending machine, except in the case of a tavern or nightclub licensed pursuant to § 25-113, an establishment that restricts admittance to persons 21 years of age or older, or a restaurant licensed pursuant to § 25-113.
(B) Any cigarette or other tobacco product vending machine that is located in a tavern, nightclub, establishment, or restaurant in accordance with subparagraph (A) of this paragraph shall be located in an area that is in the immediate vicinity, plain view, and control of a responsible employee, so that any tobacco purchase is readily observable by an employee. The cigarette or other tobacco product vending machine shall not be located in a similar unmonitored area.
(C) The annual fee for a vending machine operator’s license shall be $15 for each vending machine.
(D) Any cigarette or other tobacco product vending machine that is located in a tavern, nightclub, establishment, or restaurant in accordance with subparagraph (A) of this paragraph shall display the warning sign required by § 22-1320(e)(1).
(E) Any cigarette or other tobacco product vending machine that is located in a tavern, nightclub, establishment, or restaurant in accordance with subparagraph (A) of this paragraph shall not contain any non-tobacco product, other than matches.
(c) The Mayor shall keep a complete record of applications made for licenses under this section and of the actions taken thereon.
(d) The Mayor may, by regulation, adjust the license fees imposed by subsection (b) of this section and may establish fees for duplicate licenses.
(e) Licenses issued under this section shall remain in effect for such periods of time as may be prescribed by the Mayor by regulation, not exceeding 1 year from the effective date of such licenses, or until such licenses are suspended or revoked by the Mayor under subsection (f) of this section.
(f) The Mayor may, after a hearing, suspend or revoke any license issued under this section for any violation of this chapter or of the regulations promulgated under this chapter.
(g) The licenses required by this section shall be in addition to the licenses required by any other law or regulation.
(h) The Mayor may suspend any license issued under this section to any person convicted of a first or second violation of § 22-1320. The Mayor shall revoke the license for a third or subsequent violation.
(h-1) The Mayor may, after a hearing, suspend any license issued under this section for a first or second violation of [§ 7-1721.08(a)]. The Mayor shall, after a hearing, revoke any license issued under this section for a third or subsequent violation of [§ 7-1721.08(a)].
(i) Any license issued pursuant to this chapter shall be issued as a General Sales endorsement to a basic business license under the basic business license system as set forth in subchapter I-A of Chapter 28 of this title.
(May 27, 1949, 63 Stat. 138, ch. 146, title VI, § 605; Mar. 10, 1982, D.C. Law 4-71, § 2, 28 DCR 5243; May 2, 1991, D.C. Law 8-262, § 4(b), 37 DCR 8434; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Apr. 20, 1999, D.C. Law 12-261, § 2003(pp)(3), 46 DCR 3142; Oct. 28, 2003, D.C. Law 15-38, § 3(hh)(1), 50 DCR 6913; July 23, 2010, D.C. Law 18-189, § 4(b), 57 DCR 3019; Feb. 26, 2015, D.C. Law 20-155, § 7012(e)(6), 61 DCR 9990; Feb. 18, 2017, D.C. Law 21-191, § 4, 63 DCR 15003; Sept. 22, 2021, D.C. Law 24-25, § 3, 68 DCR 007332.)
Prior Codifications
1981 Ed., § 47-2404.
1973 Ed., § 47-2804.
Section References
This section is referenced in § 7-1721.02, § 7-1721.04, § 7-1721.05, § 7-1721.06, § 7-1803.02, § 7-1803.06, § 47-2409, § 47-2418, and § 47-2422.
Effect of Amendments
D.C. Law 15-38, in subsec. (i), substituted “General Sales endorsement to a basic business license under the basic” for “Class B General Sales endorsement to a master business license under the master”.
D.C. Law 18-189 substituted “cigarettes or other tobacco product” for “cigarettes”; and added subsecs. (b)(3)(D) and (E).
The 2015 amendment by D.C. Law 20-155 added “or other tobacco products” throughout (3)(B).
Cross References
Furnishing tobacco products to minors, license suspension, see § 22-1320.
Applicability
Applicability of D.C. Law 24-25: The Budget Office of the Council of the District of Columbia has determined that D.C. Law 24-25 has been funded. Therefore the amendments to this section by § 3 of D.C. Law 24-25 have been implemented.
Applicability of D.C. Law 24-25: § 4 of D.C. Law 24-25 provided that the change made to this section by § 3 of D.C. Law 24-25 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.
Section 7021 of D.C. Law 22-168 repealed section 5 of D.C. Law 21-191 removing the applicability restriction impacting this section. Therefore the amendments of this section by D.C. Law 21-191 have been implemented.
Applicability of D.C. Law 21-191: § 5 of D.C. Law 21-191 provided that the change made to this section by § 4 of D.C. Law 21-191 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.
Emergency Legislation
For temporary (90 day) amendment of section, see § 3(hh)(1) of Streamlining Regulation Emergency Act of 2003 (D.C. Act 15-145, August 11, 2003, 50 DCR 6896).
For temporary (90 days) amendment of this section, see § 7022(e)(6) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).
For temporary (90 days) amendment of this section, see § 7012(e)(6) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).
For temporary (90 days) amendment of this section, see § 7012(e)(6) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).
References in Text
Section 25-111, referred to in subsection (b)(3)(A) of this section, is part of Title 25, D.C. Code, which title was amended and enacted by D.C. Law 13-298, effective May 3, 2001. For disposition of the subject matter of former Title 25, see the Disposition Table preceding § 25-101.