West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-17 - Tobacco Products Excise Tax › Section 110-17-4 - Cigarette Tax-Paid Stamps and Taxing Other Tobacco Products

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. General - W.
				Va. Code §
									11-17-1 et
				seq. authorizes the use of stamps to evidence payment of the excise tax on
				cigarettes. All stamps shall conform to the contract entered into between the
				State of West Virginia and the manufacturer of the stamps.
4.2. Form and Description of Hand Applied
				Cigarette Tax Stamps - The stamps shall measure approximately one-half inch by
				five-eighths inch in size. The design of the stamps shall be as follows: Across
				the top part of the stamp shall be the words "State of West Virginia"; in the
				center part of the stamp shall be an outline of the State of West Virginia;
				inside the outline of the map of West Virginia shall appear the numerals twenty
				(20) which will indicate that the tax has been paid on twenty (20) cigarettes
				or twenty-five (25) which will indicate that the tax has been paid on
				twenty-five (25) cigarettes; and on the lower part of the stamp shall appear
				the words "Cigarette Tax Stamp". The Commissioner may designate any other marks
				to be included in the design and layout of the stamps, and in the case of
				packaging not containing 20 or 25 cigarettes, the Tax Commissioner may
				prescribe any alternative designs that may be appropriate.
4.3. Form and Description of Cigarette
				Tax-paid Meter Impressions - The size of the meter impressions shall be
				approximately five-eighths inch by one and one-quarter inch, and rectangular in
				shape or design. The form of the meter impressions, made by a metering device,
				to be placed on the package of cigarettes, shall contain the words "West
				Virginia Tax-paid Cigarettes". In the center of the meter impression shall be
				the outline of the map of the State of West Virginia and on both sides of the
				outline of the map of West Virginia, shall appear numerals which will designate
				the meter which was used to make the impression. The Commissioner may designate
				any other marks to be included in the design and layout of the stamps and may
				prescribe any alternative designs that may be appropriate.
4.4. Form and Description of Cigarette
				Tax-paid Stamps Heat Applied by Machine - The stamps shall measure
				approximately one-half inch by one-half inch in size. The design of the heat
				applied stamps shall be as follows: Across the top part of the stamp shall be
				the words "State of West Virginia"; in the center part of the stamp shall be an
				outline of the map of the State of West Virginia; inside the outline of the map
				of West Virginia shall appear the numerals (20) twenty which shall indicate
				that the tax has been paid on twenty (20) cigarettes or (25) twenty-five, which
				shall indicate that the tax has been paid on twenty-five; and on the lower part
				of the stamp shall appear the words "Cigarette Tax Stamp". The Commissioner may
				designate any other marks to be included in the design and layout of the
				stamps, and in the case of packaging not containing 20 or 25 cigarettes, the
				Tax Commissioner may prescribe any alternative designs that may be
				appropriate.
4.5. Purchase of
				Cigarette Tax-paid Stamps - Stamps may be purchased only from the Tax
				Commissioner. The Tax commissioner shall sell stamps only upon receipt of the
				prescribed requisition form and, unless the purchaser has secured a Cigarette
				Tax Credit Purchase Bond, the proper remittance.
4.5.1. A wholesaler may obtain a continuous
				Cigarette Tax Credit Purchase Bond to allow the purchase of cigarette stamps on
				credit. The terms of credit shall be payment on the third purchase or within
				thirty days (whichever comes first) with no more than two requisitions on
				credit simultaneously. The total amount of tax due on the two requisitions
				shall be no more than one-half (1/2) the amount of the total bond. After
				approval of the bond by the Attorney General, an annual notice of renewal is
				the only requirement. Any surety issuing a bond shall be released and
				discharged from all liability on the bond after the expiration of sixty days
				from the date the surety filed, by certified mail, with the Tax Commissioner a
				written request to cancel the bond. This cancellation does not relieve, release
				or discharge the surety from liability already accrued, or which accrues before
				the expiration of the sixty day period. The bond shall be conditioned upon
				compliance with the provisions of W. Va. Code §
										11-17-1 et
				seq., including the filing of the returns and payment of all applicable
				taxes.
4.5.2. The Tax Commissioner
				shall not ship any stamps prior to receipt of proper remittance if terms of
				credit are not followed.
4.5.3. W.
				Va. Code §
										11-17-3
				sets a tax at a specified rate for each twenty cigarettes or in like ratio on
				any part thereof. (For example, 17 cents for each 20 cigarettes.) The Tax
				commissioner shall allow a discount of four per cent for the purchase of stamps
				or meter impression as an allowance for affixing stamps and /or meter
				impression and prepaying the excise tax imposed on cigarettes.
4.5.4. Cigarette tax stamps are intended for
				the use of the authorized purchaser and are not transferable. If the wholesaler
				ceases business or stops stamping, the wholesaler shall return any unused
				stamps shall be returned to the Tax Commissioner for refund.
4.5.5. The Tax Commissioner shall redeem any
				unused or mutilated, but identifiable, stamps that any registered wholesaler
				may present for redemption. The Tax Commissioner may either issue a credit or a
				refund for stamps destroyed by fire or flood, on written verified requests made
				by the purchaser or his or her representative. The credit or refund shall be
				ninety-five per cent of the face value of the stamps, less any discounts
				allowed on the purchase of the stamps. Each request for redeeming or refunding
				shall be verified to the satisfaction of the Tax Commissioner.
4.5.6. In the event a retail dealer suffers
				loss of stamped cigarettes as a result of fire or flood, the retail dealer
				shall file a verified request for refund with the Tax Commissioner in order to
				obtain a refund. The verified request for refund shall contain the pertinent
				facts relating to the cause of the loss and the quantity of cigarette packages
				lost or packages damaged so as to be unsalable. A statement from an agent
				authorized by the Tax Commissioner may also be attached to the request for
				refund when the agent has declared certain packages of cigarettes to be unfit
				for use or sale. The amount of the refund shall be ninety-five per cent of the
				face value of the stamps, less any discounts allowed on the purchase of the
				stamps.
4.5.7. Stamps on cigarettes
				returned to the manufacturers shall be subject to either a credit or a refund
				upon the wholesaler filing an application and affidavit completed by the
				manufacturer that evidences the destruction of stamps or meter impressions. The
				amount of the refund shall be ninety-five per cent of the face value of the
				stamps, less any discounts allowed on the purchase of the stamps.
4.5.8. The Tax Commissioner shall not allow
				refunds to users of metering machines for loss of impressions.