Opinion ID: 1118569
Heading Depth: 1
Heading Rank: 6

Heading: The Tax Payment

Text: Under the statutory taxing regime then (and now) in force licensed wholesalers, jobbers and warehousemen are required to pay a cigarette excise tax on all cigarettes that come into their possession for use or consumption in the state. 68 O.S. 1991 §§ 302, [30] 305(a). [31] The tax levied shall be paid [to the Tax Commission] only once on any cigarettes sold ... or consumed... . 68 O.S. 1991 § 302. [32] Payment of the excise tax is evidenced by stamps which must be affixed to the cigarette package before it is sold for further distribution. 68 O.S. 1991 §§ 302, [33] 305(a). [34] The licensed wholesaler's withdrawal of the cigarettes from storage for sale or distribution marks the taxable event. [35] 68 O.S. 1991 § 305(a). [36] A cigarette tax must be paid in advance on all cigarettes distributed to Indian tribes. Because the taxable event occurs before the cigarettes are either sold or distributed, the state's collection process may easily result in an excessive payment. The nontribal wholesaler, when statutorily required to affix the stamps, is unable to ascertain in advance whether the ultimate consumer will be a tax-exempt tribal member or a nontribal purchaser.