§ 44-19-10.1. Prepayment of sales tax on cigarettes. (a) Every distributor and dealer licensed pursuant to chapter 20 of this title shall pay, as a prepayment for the taxes imposed by chapter 18 of this title, a tax on cigarettes possessed for sale or use in this state and upon which the distributor or dealer is required to affix cigarette stamps pursuant to chapter 20 of this title. The tax shall be computed annually by multiplying the minimum price of standard brands of cigarettes in effect as of April 1, 2005 and each April 1 thereafter, by the tax rate imposed by §§ 44-18-18 and 44-18-20. The minimum price of standard brands of cigarettes shall be determined in accordance with chapter 6 of title 13 and the regulations promulgated by the tax administrator. The tax shall be prepaid at the time the distributor or dealer purchases such stamps from the tax administrator. However, the tax administrator may, in his or her discretion, permit a licensed distributor or licensed dealer to pay for the prepayment within thirty (30) days after the date of purchase, provided that a bond satisfactory to the tax administrator in an amount not less than the prepayment due shall have been filed with the tax administrator conditioned upon payment for the prepayment of sales tax. The tax administrator shall keep accurate records of all stamps sold to each distributor and dealer.

(b) The provisions of § 44-20-12 relating to the use of stamps to evidence payment of the tax imposed by chapter 20 of this title shall be applicable to the prepayment requirement of the sales/use tax imposed by this section. Provided, however, no sales/use tax is required to be prepaid on sales of cigarettes sold to the United States, its agencies and instrumentalities or the armed forces of the United States, this state (including any city, town, district or other political subdivision) and any other organization qualifying as exempt under § 44-18-30(5).

(c) Except as otherwise provided in this section, all other provisions of chapters 18 and 19 of this title applicable to administration and collection of sales/use tax shall apply to the prepayment requirement pursuant to this section.

(d) All taxes paid pursuant to this section are conclusively presumed to be a direct tax on the retail consumer, precollected for the purpose of convenience and facility only.

History of Section. (P.L. 2005, ch. 117, art. 16, § 7.)