Sales tax on cigarettes is now based on the net price to the customer. The retailer no longer needs to increase the taxable price by the amount of the discount provided to the retailer by the manufacturer, distributor, or wholesaler.
This does not apply to coupons issued to consumers.
The legislation is retroactive to 1997. IDR auditors contacted retailers who were audited, advising them of the law; the audits were canceled.
The bill provides a refund provision for taxes paid from 1997 to 2004, limited to $25,000. Refund claims must have been filed prior to October 1, 2004.