AB75,1280,2118
(b) No person may sell cigarettes to consumers in this state by direct marketing
19unless the cigarette brands are approved by the department and listed in the
20directory of certified tobacco product manufacturers and brands as provided under
21s. 995.12 (2) (b).
AB75, s. 2365
22Section
2365. 139.345 (9) of the statutes is created to read:
AB75,1281,223
139.345
(9) Except as provided in sub. (12), any person who, without having
24a valid permit under sub. (1), sells or solicits sales of cigarettes to consumers in this
25state by direct marketing shall pay a penalty to the department of $5,000 or an
1amount that is equal to $50 for every 200 cigarettes, or fraction of 200 cigarettes, sold
2to consumers in this state by direct marketing, whichever is greater.
AB75, s. 2366
3Section
2366. 139.345 (10) of the statutes is created to read:
AB75,1281,64
139.345
(10) (a) No sale of cigarettes to a consumer in this state by direct
5marketing may exceed 10 cartons for each invoice or 20 cartons in a 30-day period
6for each purchaser or address.
AB75,1281,117
(b) Except as provided in sub. (12), any person who sells cigarettes in an amount
8that exceeds the amounts allowed under par. (a) shall pay a penalty to the
9department of $5,000 or an amount that is equal to $50 for every 200 cigarettes, or
10fraction of 200 cigarettes, sold in excess of the amounts allowed under par. (a),
11whichever is greater.
AB75,1281,1612
(c) Except as provided in sub. (12), any person who purchases cigarettes in an
13amount that exceeds the amounts allowed under par. (a) shall apply for a permit
14under s. 139.34 and shall pay a penalty to the department of $25 for every 200
15cigarettes, or fraction of 200 cigarettes, purchased in excess of the amounts allowed
16under par. (a).
AB75, s. 2367
17Section
2367. 139.345 (11) of the statutes is created to read:
AB75,1282,218
139.345
(11) (a)
Any nonresident or foreign direct marketer that has not
19registered to do business in this state as a foreign corporation or business entity
20shall, as a condition precedent to obtaining a permit under s. 139.34 (1), appoint and
21continually engage the services of an agent in this state to act as agent for the service
22of process on whom all processes, and any action or proceeding against it concerning
23or arising out of the enforcement of this chapter, may be served in any manner
24authorized by law. That service shall constitute legal and valid service of process on
25the direct marketer. The direct marketer shall provide the name, address, phone
1number, and proof of the appointment and availability of the agent to the
2department.
AB75,1282,103
(b) A direct marketer described under par. (a) shall provide notice to the
4department no later than 30 calendar days before termination of the authority of an
5agent under par. (a) and shall provide proof to the satisfaction of the department of
6the appointment of a new agent no later than 5 calendar days before the termination
7of an existing appointment. In the event an agent terminates an appointment, the
8direct marketer shall notify the department of that termination no later than 5
9calendar days after the termination and shall include proof to the satisfaction of the
10department of the appointment of a new agent.
AB75,1282,1411
(c) The secretary of state is the agent in this state for the service of process of
12any direct marketer who has not appointed and engaged an agent as provided under
13par. (a), except that the secretary of state acting as the direct marketer's agent for
14the service of process does not satisfy the requirements imposed by par. (a).
AB75, s. 2368
15Section
2368. 139.345 (12) of the statutes is created to read:
AB75,1282,1716
139.345
(12) No penalty shall be imposed under subs. (9) and (10) if any of the
17following apply:
AB75,1282,2018
(a) The secretary of revenue determines that imposing a penalty would be
19inequitable because of inadvertent acts, mistakes, or unusual circumstances related
20to the violation.
AB75,1282,2221
(b) The person who is subject to a penalty under sub. (9) or (10) had good cause
22to violate sub. (9) or (10), and such violation did not result from the person's neglect.
AB75, s. 2369
23Section
2369. 139.37 (1) (a) of the statutes is amended to read:
AB75,1283,1824
139.37
(1) (a) No person shall sell
or
cigarettes, take orders for cigarettes for
25resale
, or solicit cigarette sales in this state
for any manufacturer or permittee
1without first obtaining a unless the person has filed an application for and obtained
2a valid certificate under s. 73.03 (50) and a salesperson's permit from the department
3of revenue. No
manufacturer or permittee shall authorize any person to sell
or 4cigarettes, take orders for cigarettes
, or solicit cigarette sales in this state
without
5first having such person secure unless the person has filed an application for and
6obtained a valid certificate under s. 73.03 (50) and a salesperson's permit.
No person
7shall authorize the sale of cigarettes or the solicitation of cigarette sales in this state
8unless the person has filed an application for and obtained a valid certificate under
9s. 73.03 (50) and a valid permit under s. 139.34. The department shall issue the
10required number of permits to
manufacturers and permittees who hold a valid
11certificate issued under s. 73.03 (50). Each application for a
salesperson's permit
12shall disclose the name and address of the employer
or the person for whom the
13salesperson is selling or soliciting and such permit shall remain effective only while
14the salesperson represents such named employer
or person. If such salesperson is
15thereafter employed by another
manufacturer or permittee person, the salesperson
16shall obtain a new salesperson's permit.
Each manufacturer and The permittee
of
17any such salesperson shall notify the department within 10 days after the
18resignation or dismissal of
any such the salesperson
holding a permit.
AB75, s. 2370
19Section
2370. 139.40 (1) of the statutes is amended to read:
AB75,1283,2420
139.40
(1) All cigarettes acquired, owned, imported, possessed, kept, stored,
21made, sold, distributed or transported in violation of this chapter
or s. 134.65, and
22all personal property used in connection therewith is unlawful property and subject
23to seizure by the secretary or any peace officer. All cigarettes seized for violating s.
24139.31 (4) or (5) shall be destroyed
, except as provided in sub. (2).
AB75, s. 2371
25Section
2371. 139.40 (2) of the statutes is amended to read:
AB75,1284,10
1139.40
(2) If cigarettes which do not bear the proper tax stamps or on which
2the tax has not been paid Cigarettes that are
so seized
they as provided under sub.
3(1) may be given to law enforcement officers to use in criminal investigations or sold
4to qualified buyers by the secretary, without notice. If the cigarettes are sold, after
5deducting the costs of the sale and
the keeping of
storing the property, the proceeds
6of the sale shall be paid into the state treasury. If the secretary finds that such
7cigarettes may deteriorate or become unfit for use in criminal investigations or for
8sale or that those uses would otherwise be impractical, the secretary may order them
9destroyed
or give them to a charitable or penal institution for free distribution to
10patients or inmates.
AB75, s. 2372
11Section
2372. 139.44 (1m) of the statutes is amended to read:
AB75,1284,1412
139.44
(1m) Any person who falsely or fraudulently tampers with a cigarette
13meter tax impression machine or tax indicia in order to evade the tax under s. 139.31
14is guilty of a Class G felony.
AB75, s. 2373
15Section
2373. 139.44 (2) of the statutes is amended to read:
AB75,1284,1916
139.44
(2) Any person who makes or signs any false or fraudulent report or who
17attempts to evade the tax imposed by s. 139.31 or 139.76, or who aids in or abets the
18evasion or attempted evasion of that tax
may be fined not more than $10,000 or
19imprisoned for not more than 9 months or both, is guilty of a Class H felony.
AB75, s. 2374
20Section
2374. 139.44 (3) of the statutes is amended to read:
AB75,1284,2521
139.44
(3) Any permittee
or licensee who fails to keep the records required by
22ss.
134.65, 139.30 to 139.42
, or 139.77 to 139.82 shall be fined not less than
$100
$500 23nor more than
$500 $1,000 for the first offense and shall be fined not less than $1,000
24nor more than $5,000 or imprisoned not more than
6 months 180 days or both
for a
252nd or subsequent offense.
AB75, s. 2375
1Section
2375. 139.44 (4) of the statutes is amended to read:
AB75,1285,52
139.44
(4) Any person who refuses to permit the examination or inspection
3authorized in s. 139.39 (2) or 139.83 may be fined not
more less than $500
nor more
4than $1,000 or imprisoned not more than
90 180 days or both. Such refusal shall be
5cause for immediate
suspension or revocation of permit
or license by the secretary.
AB75, s. 2376
6Section
2376. 139.44 (5) of the statutes is amended to read:
AB75,1285,107
139.44
(5) Any person who violates any of the provisions of ss. 139.30 to 139.41
8or 139.75 to 139.83 for which no other penalty is prescribed shall be fined not
less
9than $100 nor more than
$1,000 $10,000 or imprisoned not
less than 10 days nor 10more than
90 days 9 months or both.
AB75, s. 2377
11Section
2377. 139.44 (6) of the statutes is amended to read:
AB75,1285,1412
139.44
(6) Any person who violates any of the rules of the department shall be
13fined not less than
$100 $500 nor more than
$500 $1,000 or be imprisoned not more
14than
6 9 months or both.
AB75, s. 2378
15Section
2378. 139.44 (6m) of the statutes is created to read:
AB75,1285,1816
139.44
(6m) Any person who manufactures or sells cigarettes in this state
17without holding the proper permit or license issued under this subchapter is guilty
18of a Class I felony.
AB75, s. 2379
19Section
2379. 139.44 (7) of the statutes is amended to read:
AB75,1285,2420
139.44
(7) In addition to the penalties imposed for violation of ss. 139.30 to
21139.41 or 139.75 to 139.83 or any of the rules of the department, the permit of any
22person convicted
of a 2nd or subsequent offense shall be automatically revoked and
23he or she the person shall not be granted another permit for a period of
2 5 years
24following such revocation.
AB75, s. 2380
25Section
2380. 139.44 (13) of the statutes is created to read:
AB75,1286,2
1139.44
(13) Notwithstanding subs. (1) to (8), no penalty shall be imposed under
2subs. (1) to (8) if any of the following apply:
AB75,1286,53
(a) The secretary of revenue determines that imposing a penalty would be
4inequitable because of inadvertent acts, mistakes, or unusual circumstances related
5to the violation.
AB75,1286,86
(b) The person who is subject to a penalty under subs. (1) to (8) had good cause
7to commit the violation to which the penalty applies, and such violation did not result
8from the person's neglect.
AB75, s. 2381
9Section
2381. 139.46 of the statutes is amended to read:
AB75,1286,15
10139.46 Lists List
. The department shall compile and maintain a list of direct
11marketers who have complied with the requirements of s. 139.345
and a list of direct
12marketers who the department knows have not complied with such requirements.
13The department shall provide copies of the
lists described under this section list to
14the attorney general and to each person who delivers cigarettes to consumers in this
15state that are sold by direct marketing under s. 139.345.
AB75, s. 2382
16Section
2382. 139.75 (2) of the statutes is amended to read:
AB75,1286,2017
139.75
(2) "Consumer" means
any individual who receives tobacco products for
18his or her personal use or consumption or any
person individual who has title to or
19possession of tobacco products
in storage for
use or other consumption in this state 20any purpose other than for sale or resale.
AB75, s. 2383
21Section
2383. 139.75 (3g) of the statutes is created to read:
AB75,1286,2322
139.75
(3g) "Direct marketer" means any person who solicits sales of or sells
23tobacco products to consumers in this state by direct marketing.
AB75, s. 2384
24Section
2384. 139.75 (3r) of the statutes is created to read:
AB75,1287,4
1139.75
(3r) "Direct marketing" means publishing or making accessible an offer
2for the sale of tobacco products to consumers in this state, or selling tobacco products
3to consumers in this state, using any means by which the consumer is not physically
4present on a premise that sells tobacco products.
AB75, s. 2385
5Section
2385. 139.75 (4) (a) of the statutes is amended to read:
AB75,1287,86
139.75
(4) (a) Any person
in this state engaged in the business of selling tobacco
7products
in this state who brings, or causes to be brought, into this state from outside
8the state any tobacco products for sale
or resale;
AB75, s. 2386
9Section
2386. 139.75 (4) (c) of the statutes is amended to read:
AB75,1287,1210
139.75
(4) (c) Any person
outside this state engaged in the business of selling
11tobacco products
outside this state who ships or transports tobacco products to
12retailers in this state to be sold by those retailers.
AB75, s. 2387
13Section
2387. 139.75 (4) (cm) of the statutes is created to read:
AB75,1287,1514
139.75
(4) (cm) Any person outside this state engaged in the business of selling
15tobacco products who ships or transports tobacco products to consumers in this state.
AB75, s. 2388
16Section
2388. 139.75 (4n) of the statutes is created to read:
AB75,1287,1717
139.75
(4n) "Identification card" has the meaning given in s. 134.66 (1) (c).
AB75, s. 2389
18Section
2389. 139.75 (5s) of the statutes is created to read:
AB75,1287,2119
139.75
(5s) "Person" means any individual, sole proprietorship, partnership,
20limited liability company, corporation, or association, or any owner of a single-owner
21entity that is disregarded as a separate entity under ch. 71.
AB75, s. 2390
22Section
2390. 139.75 (7) of the statutes is amended to read:
AB75,1287,2423
139.75
(7) "Retail outlet" means each place of business from which tobacco
24products are sold to consumers
by a retailer.
AB75, s. 2391
25Section
2391. 139.75 (8) of the statutes is amended to read:
AB75,1288,2
1139.75
(8) "Retailer"
means any person engaged in the business of selling
2tobacco products to ultimate consumers has the meaning given in s. 134.66 (1) (g).
AB75, s. 2392
3Section
2392. 139.76 (1) of the statutes is amended to read:
AB75,1288,224
139.76
(1) An excise tax is imposed upon the sale, offering or exposing for sale,
5possession with intent to sell or removal for consumption or sale or other disposition
6for any purpose of tobacco products by any person engaged as a distributor of them
7at the rate, for tobacco products, not including moist snuff, of
50 71 percent of the
8manufacturer's established list price to distributors without diminution by volume
9or other discounts on domestic products and, for moist snuff, at the rate of
$1.31 $1.87 10per ounce, and at a proportionate rate for any other quantity or fractional part
11thereof, of the moist snuff's net weight, as listed by the manufacturer. The tax
12imposed under this subsection on cigars shall not exceed an amount equal to
50 71 13cents for each cigar. On products imported from another country, not including moist
14snuff, the rate of tax is
50 71 percent of the amount obtained by adding the
15manufacturer's list price to the federal tax, duties and transportation costs to the
16United States. The tax attaches at the time the tobacco products are received by the
17distributor in this state. The tax shall be passed on to the ultimate consumer of the
18tobacco products. All tobacco products received in this state for sale or distribution
19within this state, except tobacco products actually sold as provided in sub. (2), shall
20be subject to such tax.
The weight-based tax imposed under this subsection on moist
21snuff does apply to moist snuff that is the inventory of a distributor on January 1,
222008, and for which the tax levied under this subsection, 2005, stats., has been paid.
AB75, s. 2393
23Section
2393. 139.76 (3) of the statutes is created to read:
AB75,1289,3
1139.76
(3) Except as provided in sub. (2), no person may possess tobacco
2products in this state unless the tax imposed under sub. (1) is paid on such tobacco
3products.
AB75, s. 2394
4Section
2394. 139.765 of the statutes is created to read:
AB75,1289,11
5139.765 Moist snuff inventory tax imposed. (1) On the effective date of
6any increase in the sum of the rate under s. 139.76 (1), an inventory tax is imposed
7upon moist snuff held in inventory for sale or resale on which the moist snuff tax has
8been paid at the prior rate and in the possession of distributors. Any person liable
9for this tax shall determine the ounces of moist snuff in the person's possession on
10the effective date of the increase, and by the 30th day after the effective date of the
11increase the person shall file a return and shall by that date pay the tax due.
AB75,1289,14
12(2) The moist snuff inventory tax under this section is computed by multiplying
13the ounces of moist snuff held in inventory for sale by the difference between the prior
14tax rate and the new tax rate.
AB75,1289,18
15(3) Sections 71.74 (1), (2), (10), (11), (13) and (14), 71.75 (4) to (7), 71.80 (12),
1671.82 (2), 71.83 (2) (b) 3., 71.88 (1) (a) and (2) (a), 71.89, 71.90, 71.91 (1) (a) and (c)
17and (2) to (7), 71.92, 73.01, 73.015, and 73.0301, as they apply to income and
18franchise taxes, apply to the tax imposed under this section.
AB75,1290,3
19(4) Any person who fails to file a moist snuff tax return when due shall pay a
20late filing fee of $10. A return that is mailed is timely if it is mailed in a properly
21addressed envelope with postage prepaid, if the envelope is postmarked, or marked
22or recorded electronically as provided under section
7502 (f) (2) (c) of the Internal
23Revenue Code, on the due date and if the return is actually received by the
24department or at the destination that the department prescribes no later than 5 days
25after the due date. A return that is not mailed is timely if it is received on or before
1the due date by the department or at the destination that the department prescribes.
2For purposes of this subsection, "mailed" includes delivery by a delivery service
3designated under section
7502 (f) of the Internal Revenue Code.
AB75,1290,6
4(5) If any person does not timely pay the tax imposed under this section, that
5person is liable for interest at the rate of 1.5 percent per month or fraction of a month
6from the date the tax is due until the date when the tax is paid.
AB75,1290,9
7(6) If any person who is liable for the tax under this section files a false or
8fraudulent return, that person is also liable, in addition to the tax due, for an amount
9equal to the amount of tax the person evaded or attempted to evade.
AB75, s. 2395
10Section
2395. 139.78 (1) of the statutes is amended to read:
AB75,1290,1911
139.78
(1) A tax is imposed upon the use or storage by consumers of tobacco
12products in this state at the rate, for tobacco products, not including moist snuff, of
1350 71 percent of the cost of the tobacco products and, for moist snuff, at the rate of
14$1.31 $1.87 per ounce, and at a proportionate rate for any other quantity or fractional
15part thereof, of the moist snuff's net weight, as listed by the manufacturer. The tax
16imposed under this subsection on cigars shall not exceed an amount equal to
50 71 17cents for each cigar. The tax does not apply if the tax imposed by s. 139.76 (1) on the
18tobacco products has been paid or if the tobacco products are exempt from the tobacco
19products tax under s. 139.76 (2).
AB75, s. 2396
20Section
2396. 139.78 (1m) of the statutes is created to read:
AB75,1290,2421
139.78
(1m) Except as provided in s. 139.76 (2), no person other than a
22distributor with a valid permit under s. 139.79 may import, ship, or transport into
23this state tobacco products for which the tax imposed under s. 139.76 (1) has not been
24paid.
AB75, s. 2397
25Section
2397. 139.79 (title) of the statutes is amended to read:
AB75,1291,1
1139.79 (title)
Permits; distributor; subjobber.
AB75, s. 2398
2Section
2398. 139.79 (1) of the statutes is amended to read:
AB75,1291,63
139.79
(1) No person may engage in the business of a distributor
, direct
4marketer, or subjobber of tobacco products at any place of business unless that
5person has filed an application for and obtained a permit from the department to
6engage in that business at such place.
AB75, s. 2399
7Section
2399. 139.79 (2) of the statutes is amended to read:
AB75,1291,98
139.79
(2) Section 139.34 (1)
(b)
(c) to (f),
(1s), (4) and (9) applies to the permits
9under this section.
AB75, s. 2400
10Section
2400. 139.795 of the statutes is created to read:
AB75,1291,16
11139.795 Direct marketing. (1) (a) No person may sell tobacco products by
12direct marketing to consumers in this state as a direct marketer or solicit sales of
13tobacco products to consumers in this state by direct marketing unless the person has
14obtained a permit from the department to make such sales or solicitations. The
15person shall file an application for a permit under this subsection with the
16department, in the manner prescribed by the department.
AB75,1291,2017
(b) No person may be issued a permit under this subsection unless the person
18holds a valid distributor's permit under s. 139.79. Section 139.34 (1) (c) to (f), (4), and
19(9), as it applies to permits issued under s. 139.34, applies to permits issued under
20this subsection.
AB75,1292,321
(c) No person may be issued a permit under this subsection unless the person
22certifies to the department, in the manner prescribed by the department, that the
23person shall register with credit card and debit card companies; that the invoices and
24all means of solicitation for all shipments of tobacco product sales from the person
25shall bear the person's name and address and the permit number of the permit
1ultimately issued under this subsection; and that the person shall provide the
2department any information the department considers necessary to administer this
3section.
AB75,1292,6
4(2) No person may sell tobacco products to consumers in this state by direct
5marketing unless the tax imposed under s. 139.76, and under s. 77.52 or 77.53, has
6been paid with regard to such products.