AB100: Bill Text

AB100, s. 1952 Section 1952. 139.30 (2p) of the statutes is created to read:

AB100,930,2 139.30 (2p) "Direct marketing" means publishing or making accessible an offer for the sale of cigarettes to consumers in this state, or selling cigarettes to consumers in this state, using any means by which the consumer is not physically present at the time of sale on a premise that sells cigarettes.

AB100, s. 1953 Section 1953. 139.30 (3) of the statutes is amended to read:

AB100,930,8 139.30 (3) "Distributor" means any person who acquires unstamped cigarettes from the manufacturer thereof, affixes stamps to the packages or other containers, stores them and sells them to other permittees or to retailers for resale or and who acquires may acquire stamped cigarettes from another permittee manufacturers or distributors for such sales.

AB100, s. 1954 Section 1954. 139.30 (4n) of the statutes is created to read:

AB100,930,10 139.30 (4n) "Identification card" has the meaning given in s. 134.66 (1) (c).

AB100, s. 1955 Section 1955. 139.30 (7) of the statutes is amended to read:

AB100,930,14 139.30 (7) "Manufacturer" means any person who directly manufactures cigarettes for the purpose of sale, including the authorized agent of a person who directly manufactures cigarettes for the purpose of sale.

AB100, s. 1956 Section 1956. 139.30 (8d) of the statutes is created to read:

AB100,930,18 139.30 (8d) "Nonbonded direct marketer" means any person who acquires stamped cigarettes from the manufacturers or distributors, stores them, and sells them by direct marketing to consumers for their own personal use.

AB100, s. 1957 Section 1957. 139.30 (8s) of the statutes is created to read:

AB100,930,22 139.30 (8s) "Person" means any individual, sole proprietorship, partnership, limited liability company, corporation, or association, or any owner of a single-owner entity that is disregarded as a separate entity under ch. 71.

AB100, s. 1958 Section 1958. 139.30 (10) of the statutes is amended to read:

AB100,931,3 139.30 (10) "Retailer" means any person who sells, exposes for sale or possesses with intent to sell to consumers any cigarettes has the meaning given in s. 134.66 (1) (g).

AB100, s. 1959 Section 1959. 139.32 (1) of the statutes is amended to read:

AB100,931,11 139.32 (1) The tax imposed by s. 139.31 (1) shall be paid. To evidence the payment, the department shall provide stamps. A person who has paid the tax shall affix stamps of the proper denomination to each package in which cigarettes are packed, prior to the first sale within this state. First sale does not include a sale by a manufacturer to a distributor or to a bonded direct marketer or by a distributor to a permittee who has obtained department approval as provided for in s. 139.321 (1) (a) 2. The tax shall be paid only once on each package or container.

AB100, s. 1960 Section 1960. 139.32 (4) of the statutes is amended to read:

AB100,931,15 139.32 (4) In lieu of stamps the secretary may authorize impressions applied by the use of meter machines. The secretary shall prescribe by rule the type of impression and the kind of machines which may be used.

AB100, s. 1961 Section 1961. 139.32 (5) of the statutes is amended to read:

AB100,931,19 139.32 (5) Manufacturers, bonded direct marketers, and distributors having a permit from the secretary who are authorized by the department to purchase tax stamps shall receive a discount of 1.6% of the tax paid on stamp purchases.

AB100, s. 1962 Section 1962. 139.32 (5m) of the statutes is amended to read:

AB100,931,22 139.32 (5m) Distributors, bonded direct marketers, and manufacturers shall pay to the department the cost of printing and shipping those stamps.

AB100, s. 1963 Section 1963. 139.32 (6) of the statutes is amended to read:

AB100,932,3 139.32 (6) Manufacturers, bonded direct marketers, and distributors having a permit from the secretary who are authorized by the department to purchase tax stamps may purchase stamps on credit. The secretary may require manufacturers, bonded direct marketers, and distributors who purchase stamps on credit to file under the conditions prescribed by the secretary by rule.

AB100, s. 1964 Section 1964. 139.321 (1) (intro.) of the statutes is amended to read:

AB100,932,7 139.321 (1) (intro.) It is unlawful for any person to possess in excess of 400 cigarettes unless the required stamps are properly affixed as provided in ss. 139.32 (1) and 139.33 (4).

AB100, s. 1965 Section 1965. 139.321 (1) (a) 1. of the statutes is amended to read:

AB100,932,10 139.321 (1) (a) 1. Manufacturers, bonded direct marketers, distributors or warehouse operators possessing valid permits issued by the secretary.

AB100, s. 1966 Section 1966. 139.33 (3) of the statutes is amended to read:

AB100,933,2 139.33 (3) No person other than a member of the armed forces, as specified in this subsection, a licensed distributor, or a bonded direct marketer who is authorized by the department to purchase and affix tax stamps may import into this state more than 400 cigarettes on which the excise tax imposed by s. 139.31 has not been paid and the container of which does not bear proper stamps. Within 15 days, any such person importing cigarettes shall file a declaration of such cigarettes imported and shall remit therewith the tax on such cigarettes imposed by this section. Members of the armed forces shall not be required to report or pay the tax on cigarettes in their possession if such cigarettes are issued to them by the U.S. government or any of its subdivisions or were purchased in any armed forces post exchange or service store for their personal use or consumption. If the use tax imposed by this section is not paid when due, it shall become delinquent and the person liable for it shall pay, in addition, a penalty of $25 for each 200 cigarettes. Interest on the delinquent tax and penalty shall accrue at the rate of 1.5% per month or each fraction of a month from the date the tax became due until paid.

AB100, s. 1967 Section 1967. 139.34 (1) (a) of the statutes is amended to read:

AB100,933,9 139.34 (1) (a) No person may manufacture cigarettes in this state or sell cigarettes in this state as a distributor, manufacturer, jobber, vending machine operator, direct marketer, or multiple retailer and no person may operate a warehouse in this state for the storage of cigarettes for another person without first filing an application for and obtaining the proper permit to perform such operations from the department.

AB100, s. 1968 Section 1968. 139.34 (1) (b) of the statutes is repealed.

AB100, s. 1969 Section 1969. 139.34 (1) (c) (intro.) of the statutes is amended to read:

AB100,933,13 139.34 (1) (c) (intro.) Subject to ss. 111.321, 111.322 and 111.335, no No permit under this section may be granted to any person to whom any of the following applies:

AB100, s. 1970 Section 1970. 139.34 (1) (c) 1. to 6. of the statutes are repealed.

AB100, s. 1971 Section 1971. 139.34 (1) (c) 1m. of the statutes is created to read:

AB100,933,17 139.34 (1) (c) 1m. Subject to ss. 111.321, 111.322, and 111.335, the person has an arrest record or a conviction record.

AB100, s. 1972 Section 1972. 139.34 (1) (c) 2m. of the statutes is created to read:

AB100,933,20 139.34 (1) (c) 2m. Subject to ss. 111.321, 111.322, and 111.335, the person has been convicted of a felony, or as a repeat or habitual offender, unless pardoned.

AB100, s. 1973 Section 1973. 139.34 (1) (c) 3m. of the statutes is created to read:

AB100,933,23 139.34 (1) (c) 3m. The person has not submitted proof as provided under s. 77.61 (11).

AB100, s. 1974 Section 1974. 139.34 (1) (cm) of the statutes is created to read:

AB100,934,7 139.34 (1) (cm) The requirements under par. (c) apply to all partners of a partnership, all members of a limited liability company, all agents, director, and shareholders, of a limited liability company or corporation, and all officers of a corporation. Subject to ss. 111.321, 111.322, and 111.335, if a business entity has been convicted of a crime, the entity may not be issued a permit under this subsection unless the entity has terminated its relationship with the individuals whose actions directly contributed to the conviction.

AB100, s. 1975 Section 1975. 139.34 (3) of the statutes is amended to read:

AB100,934,13 139.34 (3) No distributor or bonded direct marketer may affix stamps to cigarette packages, as provided in s. 139.32, unless the distributor or bonded direct marketer certifies to the department, in a manner prescribed by the department, that the distributor or bonded direct marketer purchases cigarettes directly from a manufacturer.

AB100, s. 1976 Section 1976. 139.34 (4) of the statutes is amended to read:

AB100,934,20 139.34 (4) A separate permit shall be required of and issued to each class of permittee and the holder of any permit shall perform only the operations thereby authorized. Such permit shall not be transferable from one person to another or from one premises to another. A separate permit shall be required for each place where cigarettes are stamped or where cigarettes are stored for sale at wholesale or, through vending machines or multiple retail outlets, or by direct marketing.

AB100, s. 1977 Section 1977. 139.34 (6) of the statutes is amended to read:

AB100,934,25 139.34 (6) A vending machine operator or a multiple retailer may acquire unstamped cigarettes from the manufacturers thereof and affix the stamps to packages or other containers only if the vending machine operator or multiple retailer also holds a permit as a distributor or bonded direct marketer.

AB100, s. 1978 Section 1978. 139.34 (8) of the statutes is amended to read:

AB100,935,7 139.34 (8) The holder of a warehouse permit is entitled to store cigarettes on the premises described in the permit. The warehouse permit shall not authorize the holder to sell cigarettes. Unstamped cigarettes stored in a warehouse for a manufacturer, bonded direct marketer, or distributor may be delivered only to a person holding a permit as a manufacturer or, distributor, or bonded direct marketer who is authorized by the department to purchase and affix tax stamps.

AB100, s. 1979 Section 1979. 139.345 of the statutes is created to read:

AB100,935,14 139.345 Direct marketing. (1) (a) (intro.) No person may sell cigarettes to consumers in this state as a direct marketer or solicit sales of cigarettes to consumers in this state by direct marketing unless the person has obtained a permit from the department to make such sales or solicitations. The person shall file an application for a permit under this subsection with the department, in the manner prescribed by the department, and shall submit the following fee with the application:

AB100,935,16 1. If the person sells less than 600,000 cigarettes annually to consumers in this state by direct marketing, $500.

AB100,935,18 2. If the person sells 600,000 or more cigarettes annually to consumers in this state by direct marketing, $1,000.

AB100,935,19 (b) A permit issued under par. (a) expires on December 31 of each year.

AB100,936,4 (c) The department may not issue a permit to a person under par. (a) unless the person certifies to the department, in the manner prescribed by the department, that the person shall acquire stamped cigarettes from a licensed distributor or unstamped cigarettes from the manufacturer thereof, pay the tax imposed under this subchapter on all unstamped cigarettes and affix stamps to the cigarette packages or containers as provided under s. 139.32 (1), store such packages or containers, and sell only such packages or containers to consumers in this state by direct marketing; or acquire cigarettes from a distributor, to the packages or containers of which stamps have been affixed as provided under s. 139.32 (1), and sell only such packages or containers to consumers in this state by direct marketing.

AB100,936,11 (d) No person may be issued a permit under this subsection unless the person certifies to the department, in the manner prescribed by the department, that all cigarette sales to consumers in this state shall be credit card transactions; that the invoices and all means of solicitation for all shipments of cigarette sales from the person shall bear the person's name and address and permit ultimately issued under this subsection; and that the person shall provide the department any information the department considers necessary to administer this section.

AB100,936,14 (2) (a) No person may purchase tax stamps in excess of the number of cigarette sales specified in his or her permit under sub. (1) (a) unless the person pays the permit fee under sub. (1) (a) that is applicable to the excess amount.

AB100,936,20 (b) No person may sell cigarettes in excess of the number of cigarette sales specified in his or her permit under sub. (1) (a) unless the person pays the permit fee under sub. (1) (a) that is applicable to the excess sales. Any person who sells cigarettes in excess of the number of cigarette sales specified in his or her permit shall pay a penalty to the department of $1,000 or an amount that is equal to $50 for every 200 cigarettes, or fraction of 200 cigarettes, whichever is greater.

AB100,936,24 (3) (a) No person may sell cigarettes to consumers in this state by direct marketing unless the tax imposed under s. 139.31 (1) is paid on such cigarettes and stamps are affixed to the cigarette packages or containers as provided under s. 139.32.

AB100,937,2 (b) No person may sell cigarettes to consumers in this state by direct marketing unless the tax imposed under s. 77.52 or 77.53 is paid on the sale of such cigarettes.

AB100,937,6 (c) No person may sell cigarettes to consumers in this state by direct marketing unless the cigarette brands are approved by the department and listed in the directory of certified tobacco product manufacturers and brands as provided under s. 895.12 (2) (b).

AB100,937,9 (4) No person may sell cigarettes to a consumer in this state by direct marketing unless the person verifies the consumer's identity and that the consumer is at least 18 years of age by any of the following methods:

AB100,937,11 (a) The person uses a database, approved by the department, that includes information based on public records to verify the consumer's age and identity.

AB100,937,15 (b) The person receives from the consumer, at the time of purchase, a notarized copy of an identification card, the name specified on the identification matches the name of the consumer, and the birth date on the identification verifies that the purchaser is at least 18 years of age.

AB100,937,17 (c) The person uses a mechanism, other than a mechanism under par. (a) or (b), for verifying the age and identity of a consumer that is approved by the department.

AB100,937,22 (5) Any person who, without having a valid permit under sub. (1), sells or solicits sales of cigarettes to consumers in this state by direct marketing shall pay a penalty to the department of $5,000 or an amount that is equal to $50 for every 200 cigarettes, or fraction of 200 cigarettes, sold to consumers in this state by direct marketing, whichever is greater.

AB100,937,25 (6) (a) No sale of cigarettes to a consumer in this state by direct marketing may exceed 10 cartons for each invoice or 20 cartons in a 30-day period for each purchaser or address.

AB100,938,4 (b) Any person who sells cigarettes that exceed the maximum amounts under par. (a) shall pay a penalty to the department of $5,000 or an amount that is equal to $50 for every 200 cigarettes, or major fraction of 200 cigarettes, sold above the maximum amounts, whichever is greater.

AB100,938,8 (c) Any person who purchases cigarettes that exceed the maximum amounts under par. (a) shall apply for a permit under s. 139.34 and shall pay a penalty to the department of $25 for every 200 cigarettes, or fraction of 200 cigarettes, purchased above the maximum amounts.

AB100,938,13 (7) No cigarettes may be shipped to a person who is under 18 years of age and no cigarettes may be shipped to a post-office box. Every package used to ship cigarettes that are sold as provided under this section and delivered to a person in this state shall be clearly labeled to indicate that the package contains cigarettes and may not be delivered to a person who is under 18 years of age.

AB100, s. 1980 Section 1980. 139.35 (1) of the statutes is amended to read:

AB100,938,19 139.35 (1) Transfers. No person may give, sell or lend any stamps to another and no person may accept, purchase or borrow any stamps from another. All sales and transfers of stamps may be made only by the secretary to permit holding manufacturers and, distributors, and bonded direct marketers who are authorized by the department to purchase and affix tax stamps.

AB100, s. 1981 Section 1981. 139.37 (1) (a) of the statutes is amended to read:

AB100,939,14 139.37 (1) (a) No person shall sell cigarettes or take orders for cigarettes for resale solicit cigarette sales in this state for any manufacturer or permittee without first obtaining a unless the person has filed an application for and obtained a valid certificate under s. 73.03 (50) and a salesperson's permit from the department of revenue. No manufacturer or permittee shall authorize any person to sell cigarettes or take orders for cigarettes solicit cigarette sales in this state without first having such person secure unless the person has filed an application for and obtained a valid certificate under s. 73.03 (50) and a salesperson's permit. No person shall authorize the sale or solicitation of cigarettes in this state unless the person has filed an application for and obtained a valid certificate under s. 73.03 (50) and a valid permit under s. 139.34. The department shall issue the required number of permits to manufacturers and permittees who hold a valid certificate issued under s. 73.03 (50). Each application for a permit shall disclose the name and address of the employer or the person for whom the sales person is soliciting and such permit shall remain effective only while the salesperson represents such named employer or person. If such salesperson is thereafter employed by another manufacturer or permittee person, the salesperson shall obtain a new salesperson's permit. Each manufacturer and permittee shall notify the department within 10 days after the resignation or dismissal of any such salesperson holding a permit.

AB100, s. 1982 Section 1982. 139.38 (1) of the statutes is amended to read:

AB100,940,4 139.38 (1) Every manufacturer located out of the state shall keep records of all sales of cigarettes shipped into this state. Every manufacturer located in the state shall keep records of production, sales and withdrawals of cigarettes. Every distributor and direct marketer shall keep records of purchases and sales of cigarettes. Every manufacturer, bonded direct marketer, and distributor holding a permit from the secretary with the right who is authorized by the department to purchase and apply stamps shall also keep records of purchases and disposition of stamps. Every jobber, multiple retailer, and vending machine operator shall keep records of all purchases and disposition of cigarettes. Every warehouse operator shall keep records of receipts and withdrawals of cigarettes. All such records shall be accurate and complete and be kept in a manner prescribed by the secretary. These records shall be preserved on the premises described in the permit or license in such a manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized personnel of the department.

AB100, s. 1983 Section 1983. 139.38 (1m) of the statutes is created to read:

AB100,940,13 139.38 (1m) Records of purchases and sales of cigarettes under sub. (1) that are kept by direct marketers shall indicate, for each shipment of cigarettes into this state in the month preceding the report under sub. (2), the invoice date and number; the quantity of cigarettes shipped; the brand name of the cigarettes shipped; the manufacturer of the cigarettes shipped and the point of origin; the purchaser's name, address, and birth date; the name of the person to whom the cigarettes were shipped; the address to which the cigarettes were shipped; and any other information the department requires.

AB100, s. 1984 Section 1984. 139.38 (2) of the statutes is amended to read:

AB100,940,19 139.38 (2) (a) Except as provided in par. (b), every permittee manufacturer, distributor, jobber, and direct marketer shall render a true and correct invoice of every sale of cigarettes at wholesale and every permittee shall on or before the 15th day of each calendar month file a verified report of all cigarettes purchased, sold, received, warehoused or withdrawn during the preceding calendar month.

AB100,940,25 (b) The department may allow any jobber, multiple retailer, nonbonded direct marketer, or vending machine operator permittee who does not sell cigarettes, except for those on which the tax under this chapter is paid, to file a quarterly report. The quarterly report shall be filed on or before the 15th day of the next month following the close of each calendar quarter. The report shall specify the number of cigarettes purchased and sold during the preceding calendar quarter.

AB100, s. 1985 Section 1985. 139.39 (6) of the statutes is amended to read:

AB100,941,10 139.39 (6) Sections 71.74 (1), (2), (10), (11) and (14), 71.77, 71.80 (12), 71.91 (1) (a) and (c) and (2) to (7), 71.92 and 73.0301 as they apply to the taxes under ch. 71 apply to the taxes under this subchapter. Section 71.74 (13) as it applies to the collection of the taxes under ch. 71 applies to the collection of the taxes under this subchapter, except that the period during which notice of an additional assessment shall be given begins on the due date of the report under this subchapter. Section 78.70 (6) as it applies to personal liability for paying taxes, interest, penalties, and other charges under ch. 78 applies to personal liability for paying taxes, interest, penalties, and other charges under this subchapter.

AB100, s. 1986 Section 1986. 139.395 of the statutes is amended to read:

AB100,941,20 139.395 Theft of tax moneys. All cigarette tax moneys received by a distributor, bonded direct marketer, or manufacturer for the sale of cigarettes on which the tax under this subchapter has become due and has not been paid are trust funds in the hands of the distributor, bonded direct marketer, or manufacturer and are the property of this state. Any distributor, bonded direct marketer, or manufacturer who fraudulently withholds, appropriates or otherwise uses cigarette tax moneys that are the property of this state is guilty of theft under s. 943.20 (1), whether or not the distributor, bonded direct marketer, or manufacturer has or claims to have an interest in those moneys.

AB100, s. 1987 Section 1987. 139.40 (2) of the statutes is amended to read: