FINAL BILL REPORT

HB 209

                                  C 496 L 87

BYRepresentatives Appelwick, Taylor, Sayan and Holland; by request of Department of Revenue

Expanding enforcement provisions on cigarette taxes.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

The Department of Revenue is responsible for investigation and enforcement of cigarette tax violations and for seizure of contraband cigarettes.  The department has encountered enforcement problems.

Cigarette wholesalers and retailers are allowed compensation for purchasing and affixing stamps to cigarettes at the rate of 2 percent of the first mill, 1 percent of the next mill, and one-half of 1 percent of the next one-half mill.

SUMMARY:

Criminal penalties based upon the volume of seized contraband cigarettes are imposed.  Procedures are altered and updated to conform with current guidelines on search and seizure, to provide consistency and uniformity with federal tax laws on bootlegging of cigarettes and to provide for forfeiture of vehicles and other personal property used to transport or conceal contraband goods.

In addition, cigarette wholesalers and retailers are allowed compensation at the rate of $4 per 1,000 cigarette stamps purchased and affixed.

VOTES ON FINAL PASSAGE:

      House 96   0

      Senate    48     0(Senate amended)

      House 98   0(House concurred)

EFFECTIVE:July 26, 1987