2004 - SF2296
Cigarette Buydown

Sales tax on cigarettes is now based on net price to customer. Retailer no longer needs to increase taxable price by amount of discount provided to the retailer by the manufacturer, distributor of wholesaler.

This does not apply to coupons issued to consumers.

The legislation is retroactive to 1997 which covers audits that are in progress. Auditors should have already made contact with retailers who were audited advising them of the law and that audits will be cancelled.

The bill provides a refund provision for taxes paid from 1997 to present limited to $25,000. Refund claims must be filed prior to October 1.

Posted 4/23/04