Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 255 - Cigarette Tax and Regulation of Delivery Sales of Alternative Nicotine Products or Vapor Products › Rule 701-255.11 - Refund of Tax-unused and Destroyed Stamps

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Refunds of unused stamps and
				destroyed stamps.
Refunds shall be issued for unused stamps which are
				returned to the department for any reason by a person entitled to receive a
				refund. This includes unused stamps unaffixed at the close of the business day
				next preceding the effective date of a decrease in the tax rate which are in
				excess of the unstamped cigarette inventory on hand as of that date. Banks
				which are authorized to sell stamps or meter settings are not authorized to
				issue a refund; the stamps must be returned to and a refund will be issued only
				by the department. This subrule would also cover stamps which are recalled by
				the director for purposes of effectuating a change of design of the stamps. A
				refund will also be issued for stamps which have been lost through destruction,
				since destroyed stamps have not been used. A refund will not be issued for
				stamps which are lost (misplaced) or stolen, it being the distributor's or
				manufacturer's responsibility to maintain proper control over cigarette tax
				stamps. The claim for refund must be supported by proof of the fact of the loss
				and proof of the quantity of the loss. The claim must be filed within 30 days
				of the loss.
(2)
Return of
				used stamps.
Refunds shall be issued for stamps which have been
				affixed to cigarettes which have become unfit for use or consumption or
				unsaleable. This refund is available to any permitted distributor or
				manufacturer upon proof that the cigarettes were returned to the person who
				manufactured the cigarettes. The proof required shall be an affidavit from the
				distributor setting forth to whom the cigarettes were returned and verifying
				that cigarette stamps had been affixed thereto. There must also be included
				therewith an affidavit from the manufacturer to whom the cigarettes were
				returned verifying the information.
(3)
Cigarettes which have been
				destroyed.
The tax shall be returned on cigarettes which have been
				destroyed after the tax stamps have been affixed, to the person stamping the
				cigarettes. The person claiming the loss must be able to prove the fact of the
				loss and quantity of the loss. The claim, accompanied by proof of the loss and
				proof of the quantity of the loss, must be filed with the department no later
				than 30 days following the date the loss occurred. The amount of the refund
				shall be the face value of the stamps less the applicable discount allowed
				purchasers of tax stamps. This provision does not apply to cigarettes which are
				lost (misplaced) or stolen.
(4)
Credit in lieu of a refund.
There are no statutory provisions
				to allow a credit in lieu of a refund of taxes paid for returned or destroyed
				cigarette stamps.
This rule is intended to implement Iowa Code section
				  453A.8.