Purpose; liability for tax; separation of price and tax
Sec. 1. It is the intent and purpose of this chapter to levy a tax on
all cigarettes sold, used, consumed, handled, or distributed within
this state, and to collect the tax from the person who first sells, uses,
consumes, handles, or distributes the cigarettes. It is further the intent
and purpose of this chapter that whenever any cigarettes are given for
advertising or any purpose whatsoever, they shall be taxed in the
same manner as if they were sold, used, consumed, handled, or
distributed in this state. Notwithstanding any other provisions
contained in this chapter, the liability for the excise taxes imposed by
this chapter shall be conclusively presumed to be on the retail
purchaser or ultimate consumer, precollected for convenience and
facility only. When such taxes are paid by any other person, such
payment shall be considered as an advance payment and shall be
added to the price of the cigarettes and recovered from the ultimate
consumer or user. Distributors, wholesalers, or retailers may state the
amount of the tax separately from the price of such cigarettes on all
price display signs, sales or delivery slips, bills, and statements
which advertise or indicate the price of such cigarettes.
(Formerly: Acts 1947, c.222, s.1; Acts 1963(ss), c.37, s.1.) As
amended by P.L.2-1988, SEC.20.
Last modified: May 28, 2006