CHAPTER 280

FORMERLY

HOUSE BILL NO. 774

AN ACT TO AMEND CHAPTER 53, TITLE 30 OF THE DELAWARE CODE RELATING TO THE TOBACCO PRODUCT TAX.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (two-thirds of all members elected to each House thereof concurring therein):

Section 1. Amend Section 5305(a), Chapter 53, Title 30 of the Delaware Code by striking the figure "7" as it appears in said subsection and substituting in lieu thereof the figure "9.5".

Section 2. Amend Section 5317, Chapter 53, Title 30 of the Delaware Code by designating Section 5317 as subsection (a) of said section and adding thereto a new subsection (b) to read as follows:

"(b) Between noon local time and midnight on each July 31, and December 31, no affixing agent shall have in its possession cigarettes without the stamps affixed as herein provided or not segregated or marked as exempt from the requirement of Delaware tobacco product tax stamps and shall accurately report to the Director of Revenue the quantity of cigarettes bearing stamps and the balance remaining in any device used for affixation of stamps at that time. Failure to comply with this provision shall be prima facie cause for suspension or revocation of licenses under §5313 of this Chapter."

Section 3. Amend Section 5342, Chapter 53, Title 30 of the Delaware Code by adding to said section a new subsection (c) to read as follows:

"(c) Notwithstanding the provisions of subsection (b) of this section, any violation of §5317(b) of this Chapter shall be punishable as a violation of subsection (b) of this section, except that the Superior Court in and for the county in which any element of the offense occurred shall have exclusive original jurisdiction over offenses under this subsection."

Section 4. Sections 1 and 5 of this Act shall establish the rate of tax to pay or to have been paid for any first possession of cigarettes (within the meaning of 30 Del. C. §5306) in Delaware which may occur on or after August 1, 1990 (and before January 1, 1991), and on or after January 1, 1991, respectively. In addition, and not by way of limitation, there shall be imposed on all cigarette wholesaler dealers a tax on all cigarettes in the possession of such wholesaler dealers at midnight, July 31, 1990, (in the case of Section 1 of this Act) and December 31, 1990 (in the case of Section 5 of this Act) which shall as of that time and date have been affixed with Delaware metered impressions or other indicia of payment of the tax in effect prior to the effectiveness of the appropriate section of this Act. Such additional tax shall be at the rate specified in Section 1 or Section 5 of this Act, as appropriate, less the tax previously paid with respect to such cigarettes. For purposes of this Section, possession shall include possession within or without Delaware and possession within any facility of the wholesale dealer, including any retail facility. The Director of Revenue shall have the authority to promulgate such regulation, which shall have the force and effect of law, and to require such information from any dealer or to conduct such audits, examinations or inspections, as he may deem appropriate for the purpose of implementing these provisions.

Section 5. Amend §5305(a), Chapter 53, Title 30 of the Delaware Code by striking the figure "9.5" as it appears in said subsection and substitute in lieu thereof the figure "12".

Section 6. Amend §5305(a), Chapter 53, Title 30 of the Delaware Code by adding at the end thereof a new sentence to read as follows: In the event the tax computed according to this subsection results in a tax per pack involving a fraction of a cent, the tax applicable to that pack shall be computed by rounding the tax to the next higher whole cent."

Approved July 2, 1990.