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CSSB 368(FIN) am: "An Act relating to taxes on cigarettes and tobacco products, to tax stamps on cigarettes, to forfeiture of cigarettes and of property used in the manufacture, transportation, or sale of unstamped cigarettes, and to licenses and licensees under the Cigarette Tax Act; and providing for an effective date."

00                     CS FOR SENATE BILL NO. 368(FIN) am                                                                  
01 "An Act relating to taxes on cigarettes and tobacco products, to tax stamps on                                          
02 cigarettes, to forfeiture of cigarettes and of property used in the manufacture,                                        
03 transportation, or sale of unstamped cigarettes, and to licenses and licensees under the                                
04 Cigarette Tax Act; and providing for an effective date."                                                                
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1.  AS 43.50.030(d) is amended to read:                                                                  
07            (d)  For each license issued to a direct-buying retailer, and for each renewal,                              
08       the fee is $50 [$25].                                                                                         
09    * Sec. 2.  AS 43.50.035 is repealed and reenacted to read:                                                         
10            Sec. 43.50.035.  Wholesaler-distributor license.  (a)  A person outside of this                            
11       state who sells or distributes cigarettes into this state and is not required to be licensed                      
12       under AS 43.50.010 may apply for a wholesaler-distributor license.                                                
13            (b)  A person outside of this state who sells or distributes cigarettes into this                            
14       state, who is not required to be licensed under AS 43.50.010, and who wishes to                                   
01       purchase stamps under this chapter shall be licensed as a wholesaler-distributor.                                 
02            (c)  The department shall adopt reasonable regulations necessary for the                                     
03       collection of cigarette taxes on cigarette sales or distributions made by a wholesaler-                           
04       distributor licensee into this state and standards for                                                            
05                 (1)  application and issuance of the license; and                                                       
06                 (2)  refusal to issue the license.                                                                      
07    * Sec. 3.  AS 43.50.090(a) is amended to read:                                                                     
08            (a)  There is levied an excise tax of 38 mills on each cigarette imported or                                 
09       acquired in the state. The tax shall be paid through the use of stamps as provided in                             
10       AS 43.50.500 - 43.50.700.  A person who imports or acquires cigarettes in the                                 
11       state upon which a stamp required by this chapter has not been affixed in                                     
12       accordance with AS 43.50.500 - 43.50.700, who fails to apply to purchase stamps                               
13       as required by AS 43.50.540(a), and who fails to pay the tax through the use of                               
14       stamps is not relieved [THE FAILURE TO PAY THE TAX THROUGH THE USE                                            
15       OF STAMPS DOES NOT RELIEVE A PERSON] of the obligation to pay taxes due                                           
16       under this chapter.  The person shall still pay the tax, and the tax is due on or before                          
17       the end of the month following the month in which cigarettes were manufactured,                                   
18       imported, acquired, or sold in this state.  Cigarettes upon which the excise is imposed                           
19       are not again subject to the excise when acquired by another person.                                              
20    * Sec. 4.  AS 43.50.170(1) is amended to read:                                                                     
21                 (1)  "buyer" means a person who imports or acquires cigarettes for the                                  
22       person's own consumption from any source other than a manufacturer, distributor,                                  
23       direct-buying retailer, [OR] retailer, or wholesaler-distributor;                                             
24    * Sec. 5.  AS 43.50.170(3) is amended to read:                                                                     
25                 (3)  "direct-buying retailer" means a person who is engaged in the sale                                 
26       of cigarettes at retail in this state, and who brings cigarettes or causes cigarettes to be               
27       brought [CIGARETTES] into the state that are not purchased from a wholesaler-                                 
28       distributor;                                                                                                  
29    * Sec. 6.  AS 43.50.170(4) is amended to read:                                                                     
30                 (4)  "distributor" means a person who brings cigarettes that are not                                
31       purchased from a wholesaler-distributor, or has cigarettes that are not purchased                         
01       from a wholesaler-distributor brought into the state, and who sells or distributes at                         
02       least 75 percent [PER CENT] of the cigarettes to others for resale in the state;                              
03    * Sec. 7.  AS 43.50.170(12) is amended to read:                                                                    
04                 (12)  "wholesaler-distributor" means a person outside this state who                                    
05       sells or distributes cigarettes into this state, [AND] who is not required to be licensed                     
06       under AS 43.50.010, and who is licensed under AS 43.50.035.                                                   
07    * Sec. 8.  AS 43.50.190(a) is amended to read:                                                                     
08            (a)  There is levied an excise tax of 62 [12] mills on each cigarette imported or                        
09       acquired in this state.                                                                                           
10    * Sec. 9.  AS 43.50.300 is amended to read:                                                                        
11            Sec. 43.50.300.  Excise tax levied.  An excise tax is levied on tobacco                                    
12       products in the state at the rate of 100 [75] percent of the wholesale price of the                           
13       tobacco products. The tax is levied when a person                                                                 
14                 (1)  brings, or causes to be brought, a tobacco product into the state                                  
15       from outside the state for sale;                                                                                  
16                 (2)  makes, manufactures, or fabricates a tobacco product in the state                                  
17       for sale in the state; [OR]                                                                                       
18                 (3)  ships or transports a tobacco product to a retailer in the state for                               
19       sale by the retailer or to an individual for personal consumption; or                                         
20                 (4)  brings, or causes to be brought, a tobacco product into the state                              
21       from outside the state for personal consumption.                                                              
22    * Sec. 10.  AS 43.50.320(a) is repealed and reenacted to read:                                                     
23            (a)  Except as provided in (g) of this section, a person engaging in an activity                             
24       described in AS 43.50.300(1) - (3) must be licensed by the department as a distributor,                           
25       and a person engaging in an activity described in AS 43.50.300(4) must be licensed as                             
26       a buyer.                                                                                                          
27    * Sec. 11.  AS 43.50.320(b) is amended to read:                                                                    
28            (b)  The department, upon application and payment of a fee of $50, shall issue                               
29       a license for one year to a person who applies for a distributor license [UNDER (a)                           
30       OF THIS SECTION].  The department, upon application and payment of a fee of                                   
31       $25, shall issue a license for one year to a person who applies for a buyer license.                          
01    * Sec. 12.  AS 43.50.320(d) is amended to read:                                                                    
02            (d)  A distributor license issued under this section must include the name and                           
03       address of the licensee, the type of business to be conducted, and the year for which                             
04       the license is issued.                                                                                            
05    * Sec. 13.  AS 43.50.320(e) is amended to read:                                                                    
06            (e)  The department may renew a distributor license issued under this section                            
07       for a fee of $50.  The department may renew a buyer license issued under this                                 
08       section for a fee of $25.                                                                                     
09    * Sec. 14.  AS 43.50.330(a) is amended to read:                                                                    
10            (a)  On or before the last day of each calendar month, a licensee shall file a                               
11       return with the department. The return must state the number or amount of tobacco                                 
12       products sold or imported for personal consumption by the licensee during the                                 
13       preceding calendar month, the selling price or purchase price of the tobacco                                  
14       products, and the amount of tax imposed on the tobacco products.                                                  
15    * Sec. 15.  AS 43.50.390(2) is amended to read:                                                                    
16                 (2)  "licensee" means a distributor or buyer who is                                                 
17                      (A)  licensed under AS 43.50.320; or                                                               
18                      (B)  exempted by AS 43.50.320(g) from licensing under                                              
19            AS 43.50.320;                                                                                                
20    * Sec. 16.  AS 43.50.390 is amended by adding a new paragraph to read:                                             
21                 (6)  "buyer" means a person who imports tobacco products for the                                        
22       person's own consumption from any source other than a licensee.                                                   
23    * Sec. 17.  AS 43.50.540(f) is amended to read:                                                                    
24            (f)  Title to the stamps passes immediately to the licensee at the time the                                  
25       stamps are obtained in person or, if the stamps are shipped or transported, at the time                           
26       the stamps are placed in the United States mail or received by the common or private                              
27       carrier. The licensee bears all costs associated with shipping or transporting the                                
28       stamps.  The department may replace stamps lost or damaged in transit if the                                  
29       licensee provides proof acceptable to the department verifying that the loss or                               
30       damage occurred while the stamps were in the possession of the shipping                                       
31       company and the shipping company substantiates the loss or damage.  Damaged                                   
01       stamps must be returned to the department before the department may replace                                   
02       them [AND ALL RISKS OF POSSIBLE LOSS OR DAMAGE WHILE IN                                                       
03       TRANSIT].                                                                                                         
04    * Sec. 18.  AS 43.50.550(b) is amended to read:                                                                    
05            (b)  A licensee who submits an application for the purchase of stamps on a                                   
06       deferred-payment basis shall, as a condition of approval of the application, post a                           
07       bond acceptable to the department in an amount equal to                                                           
08                 (1)  200 percent of the maximum dollar amount of allowed monthly                                    
09       purchases under this section; or                                                                              
10                 (2)  100 percent of the maximum dollar amount of allowed monthly                                    
11       purchases under this section if the licensee                                                                  
12                      (A)  holds a license issued under AS 43.50.010 for a physical                                  
13            location in this state; and                                                                              
14                      (B)  has been in full compliance with the provisions of this                                   
15            title and regulations adopted under this title during the preceding 60                                   
16            months [AS A CONDITION OF APPROVAL OF THE APPLICATION].                                                  
17    * Sec. 19.  AS 43.50.580(b) is amended to read:                                                                    
18            (b)  A licensee may possess unstamped cigarettes in this state if                                            
19                 (1)  the licensee posts a surety bond in an amount satisfactory to the                                  
20       department to ensure performance of its duties under this chapter; and                                            
21                 (2)  unstamped cigarettes are necessary for the conduct of the licensee's                               
22       business in making sales or distributions                                                                         
23                      (A)  to an instrumentality of the federal government or an                                     
24            Indian tribal organization authorized by law to possess cigarettes not taxed                                 
25            under this chapter; or                                                                                   
26                      (B)  to customers outside the state and the licensee provides                                  
27            proof acceptable to the department that the licensee is properly licensed in                             
28            the jurisdictions outside the state where the sales or distributions are                                 
29            made.                                                                                                    
30    * Sec. 20.  AS 43.50.590(a) is amended to read:                                                                    
31            (a)  The department shall adopt procedures for a refund or credit to a licensee                              
01       in the amount of the denominated value, less the discount given under AS 43.50.540,                               
02       for                                                                                                               
03                 (1)  unused or damaged stamps; [OR]                                                                     
04                 (2)  stamps affixed to cigarette packages that have become unfit for use                                
05       or sale, are destroyed, or are returned to the manufacturer for credit or replacement if                          
06       the licensee provides proof acceptable to the department that the cigarettes have not                             
07       been and will not be consumed in this state; or                                                               
08                 (3)  stamps affixed to cigarette packages that are sold or                                          
09       distributed outside the state if the licensee provides proof acceptable to the                                
10       department that the cigarettes have not been and will not be consumed in this                                 
11       state and the licensee is properly licensed in the jurisdictions outside the state                            
12       where the sales or distributions are made.                                                                    
13    * Sec. 21.  AS 43.50 is amended by adding a new section to read:                                                   
14            Sec. 43.50.625.  Forfeiture of other property.  (a)  Upon a showing of                                     
15       probable cause that a person has committed the crime of misconduct involving                                      
16       unstamped cigarettes or stamps in the first degree under AS 43.50.640, the following                              
17       are subject to forfeiture:                                                                                        
18                 (1)  material and equipment used in the manufacture, sale, offering for                                 
19       sale, possession for sale, barter, or exchange of cigarettes for goods and services in                            
20       this state in violation of AS 43.50.500 - 43.50.700;                                                              
21                 (2)  aircraft, vehicles, or vessels used to transport or facilitate the                                 
22       transportation of cigarettes manufactured, sold, offered for sale, possessed for sale, or                         
23       bartered or exchanged for goods and services in this state in violation of AS 43.50.500                           
24       - 43.50.700;                                                                                                      
25                 (3)  money, securities, negotiable instruments, or other things of value                                
26       used in financial transactions derived from activity prohibited under AS 43.50.500 -                              
27       43.50.700.                                                                                                        
28            (b)  Property subject to forfeiture under this section may be actually or                                    
29       constructively seized under an order issued by the superior court upon a showing of                               
30       probable cause that the property is subject to forfeiture under this section.                                     
31       Constructive seizure is effected upon posting a signed notice of seizure on the item to                           
01       be forfeited, stating the violation and the date and place of seizure.  Seizure without a                         
02       court order may be made if                                                                                        
03                 (1)  the seizure is incident to a valid arrest or search;                                               
04                 (2)  the property subject to seizure is the subject of a prior judgment in                              
05       favor of the state; or                                                                                            
06                 (3)  there is probable cause to believe that the property is subject to                                 
07       forfeiture under (a) of this section; property seized under this paragraph may be held                            
08       for not more than 48 hours unless an order of forfeiture is issued by the court before                            
09       the end of that time period.                                                                                      
10            (c)  Within 30 days after a seizure under this section, the Department of Public                             
11       Safety shall make reasonable efforts to ascertain the identity and whereabouts of any                             
12       person holding an interest, or an assignee of a person holding an interest, in the                                
13       property seized, including a right to possession, or a lien, mortgage, or conditional                             
14       sales contract.  The Department of Public Safety shall notify the person ascertained to                           
15       have an interest in the seized property of the impending forfeiture, and, before                                  
16       forfeiture, the Department of Law shall publish, once a week for four consecutive                                 
17       calendar weeks, a notice of the impending forfeiture in a newspaper of general                                    
18       circulation in the judicial district in which the seizure was made, or if a newspaper is                          
19       not published in that judicial district, in a newspaper published in the state and                                
20       distributed in that judicial district.                                                                            
21            (d)  Property subject to forfeiture under (a) of this section may be forfeited                               
22                 (1)  upon conviction of a person for a violation of AS 43.50.640; or                                    
23                 (2)  upon judgment by the superior court in a proceeding in rem that the                                
24       property was used in a manner subjecting it to forfeiture under (a) of this section.                              
25            (e)  The owner of property subject to forfeiture under (a) of this section is                                
26       entitled to relief from the forfeiture in the nature of remission of the forfeiture if, in an                     
27       action under (d) of this section,  the owner shows that the owner                                                 
28                 (1)  was not a party to the violation;                                                                  
29                 (2)  did not have actual knowledge or reasonable cause to believe that                                  
30       the property was used or was to be used in violation of the law; and                                              
31                 (3)  did not have actual knowledge or reasonable cause to believe that                                  
01       the person committing the violation had                                                                           
02                      (A)  a criminal record for violating this chapter; or                                              
03                      (B)  committed other violations of this chapter.                                                   
04            (f)  A person other than the owner holding, or the assignee of, a lien, mortgage,                            
05       or conditional sales contract on, or the right to possession of property subject to                               
06       forfeiture under (a) of this section is entitled to relief from the forfeiture in the nature                      
07       of remission of the forfeiture if, in an action under (d) of this section, the person shows                       
08       that the person                                                                                                   
09                 (1)  was not a party to the violation subjecting the property to                                        
10       forfeiture;                                                                                                       
11                 (2)  did not have actual knowledge or reasonable cause to believe that                                  
12       the property was used or was to be used in violation of the law; and                                              
13                 (3)  did not have actual knowledge or reasonable cause to believe that                                  
14       the person committing the violation had                                                                           
15                      (A)  a criminal record for violating this chapter; or                                              
16                      (B)  committed other violations of this chapter.                                                   
17            (g)  In an in rem forfeiture proceeding brought under (d)(2) of this section, it is                          
18       not a defense that a criminal proceeding is pending or has resulted in conviction or                              
19       acquittal of a person charged with violating AS 43.50.640.                                                        
20            (h)  Property forfeited under this section shall be placed in the custody of the                             
21       commissioner of public safety for disposition according to an order entered by the                                
22       court.  The court shall order destroyed any property forfeited under this section that is                         
23       harmful to the public and shall order any property forfeited under this section that was                          
24       seized in a municipality to be transferred to the municipality in which the property was                          
25       seized.  Other property shall be ordered sold and the proceeds used for payment of                                
26       expenses of the proceedings for forfeiture and sale, including expenses of seizure,                               
27       custody, and court costs.  The remainder of the proceeds shall be deposited in the                                
28       general fund.                                                                                                     
29            (i)  Upon conviction of a person for a violation of AS 43.50.640 or 43.50.650,                               
30       if an aircraft, vehicle, or vessel is subject to forfeiture under (a) of this section, subject                    
31       to remission to innocent parties under this section, the court shall order the forfeiture                         
01       of                                                                                                                
02                 (1)  the aircraft to the state;                                                                         
03                 (2)  the vehicle or vessel to the state if the defendant                                                
04                      (A)  has a prior felony conviction for a violation of AS 11.41;                                    
05                      (B)  is on felony probation or parole; or                                                          
06                      (C)  has a prior conviction for violation of AS 43.50.640 or                                       
07            43.50.650.                                                                                                   
08            (j)  Notwithstanding (i) of this section, a court is not required to order the                               
09       forfeiture of a vehicle or vessel if the court determines that                                                    
10                 (1)  the vehicle or vessel is the sole means of transportation for a family                             
11       residing in a village;                                                                                            
12                 (2)  the members of the family                                                                          
13                      (A)  would be entitled to remission under this section if they                                     
14            were owners of or held security interests in the vehicle or vessel; or                                       
15                      (B)  were unable as a practical matter to stop the violation of                                    
16            this chapter making the vehicle or vessel subject to forfeiture; and                                         
17                 (3)  the court can impose conditions that will effectively prevent the                                  
18       defendant's use of the vehicle or vessel.                                                                         
19            (k)  The title to a vehicle or vessel forfeited to the state under this section may                          
20       be transferred by the state to a municipality or the local governing body of a village                            
21       for official use by the municipality or village, on condition that the vehicle or vessel                          
22       not be available for use by the defendant.                                                                        
23            (l)  In this section, "village" means a community of less than 1,000 persons                                 
24       located off the interconnected state road system.                                                                 
25    * Sec. 22.  AS 43.50.640(a) is amended to read:                                                                    
26            (a)  A person commits the crime of misconduct involving unstamped cigarettes                                 
27       or stamps in the first degree if the person                                                                       
28                 (1)  with reckless disregard that the cigarettes are unstamped                                          
29                      (A)  sells or distributes 5,000  [1,000] or more unstamped                                     
30            cigarettes in a single transaction;                                                                          
31                      (B)  owns or possesses 5,000 [1,000] or more unstamped                                         
01            cigarettes with the intent to sell; or                                                                       
02                      (C)  acquires, holds, transports, imports, or possesses 10,000 or                                  
03            more unstamped cigarettes; or                                                                                
04                 (2)  with reckless disregard that the stamp was previously affixed to                                   
05       another cigarette package[;]                                                                                      
06                      (A)  affixes a previously used stamp to a cigarette package; or                                    
07                      (B)  possesses, sells, or distributes a previously used stamp.                                     
08 * Sec. 23.  AS 43.50.650(a) is amended to read:                                                                       
09            (a)  A person commits the crime of misconduct involving unstamped cigarettes                                 
10       or stamps in the second degree if the person                                                                      
11                 (1)  with reckless disregard that the cigarettes are unstamped                                          
12                      (A)  sells or distributes at least one but fewer than 5,000 [1,000]                            
13            unstamped cigarettes in a single transaction;                                                                
14                      (B)  owns or possesses at least one but fewer than  5,000                                      
15            [1,000] unstamped cigarettes, with intent to sell; or                                                        
16                      (C)  acquires, holds, transports, imports, or possesses at least                                   
17            one but fewer than 10,000 unstamped cigarettes; or                                                           
18                 (2)  is not licensed under this chapter or otherwise authorized by the                                  
19       department to possess stamps and possesses a stamp that is not affixed to a cigarette                             
20       package.                                                                                                          
21    * Sec. 24.  AS 43.50.710 is amended by adding a new subsection to read:                                            
22            (e)  Nothing in this section prohibits a manufacturer from offering promotions                               
23       to a wholesaler or a retailer provided the wholesale promotion is the same for all                                
24       participating wholesalers and the retail promotion is the same for all participating                              
25       retailers.                                                                                                        
26    * Sec. 25.  AS 43.50.720 is amended to read:                                                                       
27            Sec. 43.50.720.  Sale at less than cost; with gift or concession. In all                                   
28       advertisements, offers for sale, or sales involving two or more items when at least one                           
29       of the items is cigarettes at a combined price, and in all advertisements, offers for sale,                       
30       or sales involving the giving of any gift, concession, or coupon of any kind in                                   
31       conjunction with the sale of cigarettes, the wholesaler's or retailer's combined selling                          
01       price may not be below the actual cost to the wholesaler or the actual cost to the                                
02       retailer, respectively, of the total of all articles, products, commodities, gifts, and                           
03       concessions included in the transactions, except that, if any articles, products,                                 
04       commodities, gifts, or concessions are not cigarettes, the actual [BASIC] cost shall be                       
05       determined as provided under AS 43.50.800.                                                                        
06    * Sec. 26.  AS 43.50.760(b) is amended to read:                                                                    
07            (b)  The presumptive wholesale and presumptive retail cost of cigarettes as                                  
08       determined by the department [FROM THE MANUFACTURER'S PRICE LIST] is                                              
09       considered competent evidence in a court action or proceeding as tending to prove                                 
10       actual cost to the wholesaler or retailer complained against.  A party against whom the                           
11       presumptive wholesale or presumptive retail cost as determined by the department is                               
12       introduced in evidence has the right to offer evidence tending to prove any inaccuracy                            
13       of the presumptive wholesale or presumptive retail cost or any statement of facts that                            
14       would impair its probative value.                                                                                 
15    * Sec. 27.  AS 43.50.770 is amended to read:                                                                       
16            Sec. 43.50.770.  Determination of cost of cigarettes purchased outside of                                  
17       ordinary channels of trade.  In establishing the actual [BASIC] cost of cigarettes to                       
18       a wholesaler or retailer, the invoice cost [OR THE ACTUAL COST] of cigarettes                                     
19       purchased at a forced, bankrupt, or closeout sale, or other sale outside the ordinary                             
20       channels of trade may not be used.                                                                                
21    * Sec. 28.  AS 43.50.800 is repealed and reenacted to read:                                                        
22            Sec. 43.50.800.  Presumptions applicable to determination of cost.  (a)  The                               
23       actual cost of cigarettes to a wholesaler is presumed for purposes of AS 43.50.710 -                              
24       43.50.849 to be the presumptive wholesale cost as calculated by the department plus                               
25       an amount equal to four and one-half percent of the presumptive wholesale cost to                                 
26       account for business costs.  For purposes of this section, the presumptive wholesale                              
27       cost is the manufacturer's list price, less trade discounts, plus the full face value of all                      
28       cigarette taxes.                                                                                                  
29            (b)  The actual cost of cigarettes to a retailer is presumed for purposes of                                 
30       AS 43.50.710 - 43.50.849 to be the presumptive wholesale cost as calculated by the                                
31       department under (a) of this section, plus an amount equal to six percent of the                                  
01       presumptive wholesale cost to account for business costs.                                                         
02            (c)  A wholesaler or retailer that wishes to advertise, offer to sell, or sell                               
03       cigarettes at less than the presumptive actual cost to the wholesaler or retailer as                              
04       calculated under (a) or (b) of this section must first obtain approval from the                                   
05       department.  The department may grant approval only if the wholesaler or retailer                                 
06       provides proof satisfactory to the department that the wholesaler or retailer's actual                            
07       cost is lower than presumed.  Approval for cigarette sales at less than the presumptive                           
08       actual cost as determined under (a) or (b) of this section may not be granted for a                               
09       period longer than one year.  In reviewing proof of actual wholesale or retail cost, the                          
10       department may consider the costs reflected on the actual invoice, but may not                                    
11       consider cash discounts.  In reviewing proof of actual business costs, the department                             
12       may consider the standards and methods of accounting regularly employed, and must                                 
13       include labor costs, rent, depreciation, selling costs, maintenance of equipment,                                 
14       delivery costs, all types of licenses, taxes, insurance, advertising, preopening                                  
15       expenses, provision for impaired assets and closing costs, interest expenses, and                                 
16       provision for merger and restructuring expenses.                                                                  
17    * Sec. 29.  AS 43.50.790(a)(3), 43.50.849(1), 43.50.849(6), and 43.50.849(7) are repealed.                         
18    * Sec. 30.  The uncodified law of the State of Alaska is amended by adding a new section to                        
19 read:                                                                                                                   
20       TRANSITION:  FLOOR STOCK TAX FOR CERTAIN CIGARETTES IN THE                                                        
21 STATE ON THE EFFECTIVE DATE OF THIS ACT.  (a)  Notwithstanding any other                                                
22 provision to the contrary, a floor stock tax is imposed at 12:01 a.m. on the effective date of                          
23 this Act upon every person in control or possession of cigarettes for sale or distribution in the                       
24 state that were taxed at the rate in effect before the effective date of this Act.  The floor stock                     
25 tax is the difference between the tax computed on each cigarette as provided in AS 43.50.190,                           
26 as amended by sec. 8 of this Act, on the effective date of this Act and the tax actually paid on                        
27 each cigarette as required by AS 43.50.190 as it read on the day before the effective date of                           
28 this Act.  The person subject to the floor stock tax under this section must provide proof that                         
29 the tax required by AS 43.50.190, as it read on the day before the effective date of this Act, on                       
30 each cigarette was previously paid or the tax actually paid on each cigarette is considered to                          
31 be zero.                                                                                                                
01       (b)  A person subject to the floor stock tax under this section shall file a report on a                          
02 form prescribed by the Department of Revenue and pay the tax to the Department of Revenue                               
03 in six sequential monthly installments.  The first installment shall be paid not later than the                         
04 last day of the month in which the Act takes effect.  The penalty, interest, and taxpayer                               
05 remedy provisions of AS 43.05 apply to the floor stock tax under this section.                                          
06    * Sec. 31.  This Act takes effect July 1, 2004.