Legislature(2003 - 2004)
02/10/2004 01:31 PM Senate L&C
Audio | Topic |
---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 291-UNSTAMPED CIGARETTES CHAIR CON BUNDE called the Senate Labor and Commerce Standing Committee meeting to order at 1:31 p.m. Present were Senators Stevens, French and Chair Bunde. The first order of business to come before the committee was SB 291. MS. JOHANNA BALES, Auditor, Department of Revenue (DOR), explained that last session a bill passed requiring a tax stamp (showing tax had been paid) on all packs of cigarettes. A transition period of 90 days was allowed during which any product brought into the state prior to January 1 could be sold until March 31 without having that stamp. However, after the bill was signed into law, the major manufacturers changed their returned goods policy. Formerly, full credit was given for all returned cigarettes no matter what the reason, but now none are being taken back. Originally, the department had assumed that 90 days was a sufficient transition time, but with the manufacturers' new return policy, distributors need more. SB 291 extends the transition period from March 31 to June 30, 2004. The Department of Revenue supports this bill, but would not extend the period for affixing stamps on cigarettes that were not in the state prior to January 1, 2004. SENATOR GARY STEVENS asked if she was sure the additional 90 days would be enough to sell all the cigarettes. MS. BALES replied that 90 days should be sufficient as the normal shelf time for cigarettes is four to six months. DOR is also working with the manufacturers to get all of the distributors' products stamped as quickly as possible. SENATOR FRENCH asked what prevents a merchandiser from getting a stamp on the cigarettes he has in stock now. MS. BALES said the problem is one of duplicate taxation because the statute says the department must sell the stamp and the excise tax [on in-stock cigarettes] was already paid through return filings. They researched other ways of providing stamps with the Department of Law, but found that stamps couldn't be given away. MR. MIKE ELERDING, owner, Northern Sales Distribution Co., said he had submitted written testimony in support of SB 291. SENATOR STEVENS moved to pass SB 291 from committee with individual recommendations and attached fiscal note. Senators Stevens, French and Bunde voted yes and SB 291 passed from committee.
Document Name | Date/Time | Subjects |
---|