AB481,2
1Section 2. 134.66 (2) (f) of the statutes is created to read:
AB481,4,72 134.66 (2) (f) A retailer may place cigarettes or tobacco products only in
3locations that are inaccessible to customers without the assistance of the retailer or
4the retailer's employee or agent, including behind the counter or in a locked case.
5This paragraph does not apply to cigarettes or tobacco products sold from a vending
6machine or at a business where individuals who are less than 18 years old are
7prohibited from entering.
AB481,3 8Section 3. 134.66 (4) (a) 1. of the statutes is amended to read:
AB481,4,119 134.66 (4) (a) 1. In this paragraph, "violation" means a violation of sub. (2) (a),
10(am), (cm), or (e), or (f) or a local ordinance which strictly conforms to sub. (2) (a), (am),
11(cm), or (e), or (f).
AB481,4 12Section 4. 139.30 (1m) of the statutes is amended to read:
AB481,4,1913 139.30 (1m) "Cigarette" means any roll of tobacco weighing not more than 4.5
14pounds per thousand that is
wrapped in paper or any substance other than tobacco
15or that is wrapped in any substance containing tobacco that, because of the type of
16tobacco used in the filter or because of its appearance, size, packaging, pricing, or
17marketing, is likely to be offered to, purchased by, or consumed by individuals as a
18cigarette, regardless of how the roll of tobacco is labeled, but not including any roll
19of tobacco that is wrapped in whole tobacco leaf and does not have a filter
.
AB481,5 20Section 5. 139.75 (4b) of the statutes is created to read:
AB481,4,2321 139.75 (4b) "Dry pipe tobacco" means tobacco that is labeled as pipe tobacco
22but, because of its moisture content and pricing, is likely to be offered to, purchased
23by, or consumed by individuals as tobacco for rolling cigarettes.
AB481,6 24Section 6. 139.75 (5d) of the statutes is amended to read:
AB481,5,4
1139.75 (5d) "Moist snuff" means any finely cut, ground, or powdered smokeless
2tobacco, or blend containing tobacco, that is intended to be placed or dipped in the
3mouth
for oral consumption without being lit, not including any single-unit tobacco
4product
.
AB481,7 5Section 7. 139.75 (9n) of the statutes is created to read:
AB481,5,96 139.75 (9n) "Single-unit tobacco product" means any tobacco product other
7than a cigarette or cigar that is is offered in discrete single-use tablets, lozenges,
8pouches, pills, or other single dose or single unit, or in packages of such single-use
9doses or units.
AB481,8 10Section 8. 139.75 (12) of the statutes is amended to read:
AB481,5,2311 139.75 (12) "Tobacco products" means cigars; cheroots; stogies; periques;
12granulated, plug cut, crimp cut, ready-rubbed and other smoking tobacco; snuff,
13including moist snuff; single-unit tobacco products; snuff flour; cavendish; plug and
14twist tobacco; fine cut and other chewing tobaccos; shorts; refuse scraps, clippings,
15cuttings and sweepings of tobacco and other kinds and forms of tobacco prepared in
16such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both
17for chewing and smoking
any other product containing, or made or derived from,
18tobacco that is intended for human consumption, regardless of whether it is chewed,
19smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by other means
;
20but "tobacco products" does not include cigarettes, as defined under s. 139.30 (1m),
21or any tobacco product that the federal Food and Drug Administration has approved
22for sale as a tobacco cessation or tobacco dependence product, or for another medical
23purpose, and that is being marketed and sold solely for the approved purpose
.
AB481,9 24Section 9. 139.75 (14) of the statutes is created to read:
AB481,6,3
1139.75 (14) "Wet pipe tobacco" means tobacco that is intended for smoking in
2a pipe and that is not suitable or practical for use in rolling cigarettes because of its
3moisture content and pricing.
AB481,10 4Section 10. 139.76 (1) of the statutes is amended to read:
AB481,6,245 139.76 (1) An Except as provided in sub. (3), an excise tax is imposed upon the
6sale, offering or exposing for sale, possession with intent to sell or removal for
7consumption or sale or other disposition for any purpose of tobacco products by any
8person engaged as a distributor of them at the rate, for tobacco products, not
9including moist snuff, of 71 84 percent of the manufacturer's established list price
10to distributors without diminution by volume or other discounts on domestic
11products and, for moist snuff, at the rate of 100 percent of the manufacturer's
12established list price to distributors without diminution by volume or other discounts
13on domestic products. The tax imposed under this subsection on cigars shall not
14exceed an amount equal to 50 cents for each cigar.
On products imported from
15another country, not including moist snuff, the rate of tax is 71 84 percent of the
16amount obtained by adding the manufacturer's list price to the federal tax, duties
17and transportation costs to the United States. On moist snuff imported from another
18country, the rate of the tax is 100 percent of the amount obtained by adding the
19manufacturer's list price to the federal tax, duties, and transportation costs to the
20United States. The tax attaches at the time the tobacco products are received by the
21distributor in this state. The tax shall be passed on to the ultimate consumer of the
22tobacco products. All tobacco products received in this state for sale or distribution
23within this state, except tobacco products actually sold as provided in sub. (2), shall
24be subject to such tax.
AB481,11 25Section 11. 139.76 (3) of the statutes is created to read:
AB481,7,3
1139.76 (3) Beginning on the effective date of this subsection .... [LRB inserts
2date], a person who is subject to the tax imposed under sub. (1) shall pay the greater
3of the amount determined under sub. (1) or the following:
AB481,7,74 (a) For a package of 4 cigars, an amount equal to the amount of the tax imposed
5under s. 139.31 (1) (a) on a pack of 20 cigarettes, and at a proportionate rate for any
6other quantity. No cigars with a wholesale price of less than $1 per cigar may be sold
7in this state in a package containing fewer than 5 such cigars.
AB481,7,118 (b) For single-unit tobacco products, on each single-use unit, an amount equal
9to the amount of the tax imposed under s. 139.31 (1) (a) on one cigarette. No
10single-unit tobacco products may be sold in this state in packages containing fewer
11than 20 single-use units.
AB481,7,1512 (c) For any smokeless tobacco product that consists of loose tobacco, including
13moist snuff, or that is otherwise not a product described under par. (b), on 1.2 ounces,
14an amount equal to the tax imposed under s. 139.31 (1) (a) on a pack of 20 cigarettes,
15and at a proportionate rate for any other quantity.
AB481,7,1916 (d) For any loose tobacco that is intended for smoking, including dry pipe
17tobacco, but not including wet pipe tobacco, on 0.65 ounces, an amount equal to the
18tax imposed under s. 139.31 (1) (a) on a pack of 20 cigarettes, and at a proportionate
19rate for any other quantity.
AB481,7,2420 (e) For any tobacco product other than that listed in pars. (a) to (d), on each
21package or container, an amount equal to the tax imposed under s. 139.31 (1) (a) on
22a pack of 20 cigarettes. For purposes of this paragraph, the tax applies to the
23smallest, discrete package or container in any larger package or container intended
24for sale to consumers that contains multiple smaller packages or containers.
AB481,12 25Section 12. 139.761 of the statutes is created to read:
AB481,8,10
1139.761 Tobacco products inventory tax imposed; procedures. (1)
2Inventory tax imposed. On the effective date of any increase in the rates under s.
3139.76 (1) and (3), including any increase in the rates calculated under s. 139.76 (3)
4resulting from an increase in the rate imposed under s. 139.31 (1) (a), an inventory
5tax is imposed on tobacco products held in inventory for sale or resale on which the
6tobacco products tax has been paid at the prior rate. Any person who is in possession
7of any such tobacco products shall pay the tax imposed under this section. Any
8person liable for this tax shall determine the amount of the tobacco products in the
9person's possession on the effective date of the increase and shall file a return, and
10pay the tax due, on or before the 30th day after the effective date of the increase.
AB481,8,13 11(2) Inventory tax computation. The tobacco products inventory tax under this
12section is computed by multiplying the amount of tobacco products held in inventory
13for sale or resale by the difference between the prior tax rate and the new tax rate.
AB481,8,16 14(3) Administration. Sections 71.74 (1), (2), (10), (11), (13) and (14), 71.75 (4)
15to (7), 71.80 (12), 71.82 (2), 71.83 (2) (b) 3., 71.88 (1) (a) and (2) (a), 71.89, 71.90, 71.91
16(1) (a) and (c) and (2) to (7), 71.92, 73.01, 73.015 and 73.0301 apply to this section.
AB481,9,2 17(4) Late filing fee. Any person who fails to file a tobacco products inventory
18tax return when due shall pay a late filing fee of $50. A return that is mailed is timely
19if it is mailed in a properly addressed envelope with postage prepaid, if the envelope
20is postmarked, or marked or recorded electronically as provided under section 7502
21(f) (2) (c) of the Internal Revenue Code, on the due date and if the return is actually
22received by the department or at the destination that the department prescribes
23within 5 days of the due date. A return that is not mailed is timely if it is received
24on or before the due date by the department or at the destination that the department

1prescribes. For purposes of this subsection, "mailed" includes delivery by a delivery
2service designated under section 7502 (f) of the Internal Revenue Code.
AB481,9,6 3(5) Interest on delinquent payments. If any person does not timely pay the
4tax imposed under this section, that person is liable for interest at the rate of 2
5percent per month or fraction of a month from the date on which the tax is due until
6the date when the tax is paid.
AB481,9,9 7(6) Penalty. If any person who is liable for the tax under this section files a false
8or fraudulent return, that person is also liable, in addition to the tax due, for an
9amount equal to the amount of tax the person evaded or attempted to evade.
AB481,13 10Section 13. 139.78 (1) of the statutes is amended to read:
AB481,9,1911 139.78 (1) A Except as provided in sub. (3m), a tax is imposed upon the use or
12storage by consumers of tobacco products in this state at the rate, for tobacco
13products, not including moist snuff, of 71 84 percent of the cost of the tobacco products
14and, for moist snuff, at the rate of 100 percent of the manufacturer's established list
15price to distributors without diminution by volume or other discounts on domestic
16products. The tax imposed under this subsection on cigars shall not exceed an
17amount equal to 50 cents for each cigar.
The tax does not apply if the tax imposed
18by s. 139.76 (1) on the tobacco products has been paid or if the tobacco products are
19exempt from the tobacco products tax under s. 139.76 (2).
AB481,14 20Section 14. 139.78 (2) of the statutes is amended to read:
AB481,9,2521 139.78 (2) On or before the 15th day of each month, every consumer who during
22the preceding month has acquired title to or possession for use or storage in this state
23of tobacco products upon which the tax imposed by s. 139.76 (1) and (3) has not been
24paid shall file a return showing the quantity of tobacco products acquired. At the
25time when the return is filed, the consumer shall pay the tax.
AB481,15
1Section 15. 139.78 (3m) of the statutes is created to read:
AB481,10,52 139.78 (3m) Beginning on the effective date of this subsection .... [LRB inserts
3date], a person who is subject to the tax imposed under sub. (1) shall pay the greater
4of the amount determined under sub. (1) or the amount determined under s. 139.76
5(3).
AB481,16 6Section 16. 139.803 (intro.) of the statutes is amended to read:
AB481,10,11 7139.803 Refunds to Indian tribes. (intro.) The department may refund the
8taxes collected under s. 139.76 (1) and (3) in respect to sales on reservations or trust
9lands of an Indian tribe to the tribal council of the tribe having jurisdiction over the
10reservation or trust land on which the sale is made only if all of the following
11conditions are fulfilled:
AB481,17 12Section 17. 139.805 of the statutes is amended to read:
AB481,10,20 13139.805 Agreements with Indian tribes. The department may enter into
14agreements with Indian tribes to provide for the refunding of the tobacco products
15tax imposed under s. 139.76 (1) and (3). If the department enters into an agreement
16with an Indian tribe, the agreement may provide for refunding 100% of that tax on
17tobacco products sold on the tribal reservation to enrolled members of the tribe
18residing on the tribal reservation and may provide for refunding 50% of that tax on
19tobacco products sold on the tribal reservation to persons who are not enrolled
20members of the tribe residing on the tribal reservation.
AB481,18 21Section 18. 139.82 (8) of the statutes is amended to read:
AB481,10,2422 139.82 (8) Each distributor shall collect and remit the excise tax imposed by
23s. 139.76 (1) and (3) on tobacco products not exempt from the tobacco products tax
24under s. 139.76 (2), with the reports required to be filed under this section.
AB481,19 25Section 19. Nonstatutory provisions.
AB481,11,7
1(1) Tobacco products inventory tax. Any person who is in possession of
2tobacco products in inventory for sale or resale on the effective date of this subsection
3is subject to the tobacco products inventory tax imposed under section 139.761 of the
4statutes, as created by this act, based on the difference between the prior tax rate
5imposed under section 139.76 (1) of the statutes and the new tax rates imposed under
6section 139.76 (1), 2011 stats., as affected by this act, and section 139.76 (3) of the
7statutes, as created by this act.
AB481,11,158 (2) Cigarette inventory tax. Any person who is in possession of tobacco
9products in inventory for sale or resale on the effective date of this subsection is
10subject to the cigarette inventory tax imposed under section 139.315 of the statutes
11for any such tobacco products that are considered cigarettes under section 139.30
12(1m) of the statutes, as affected by this act. The calculation of the cigarette inventory
13tax is based on the difference between the tax rate imposed under section 139.76 (1)
14of the statutes, as affected by this act, and the tax rate imposed under section 139.31
15(1) of the statutes.
AB481,20 16Section 20. Effective dates. This act takes effect on the day after publication,
17except as follows:
AB481,11,2118 (1) The treatment of sections 73.01 (4) (a), 139.30 (1m), 139.75 (4b), (5d), (9n),
19(12), and (14), 139.76 (1) and (3), 139.761, 139.78 (1), (2), and (3m), 139.803 (intro.),
20139.805, and 139.82 (8) of the statutes takes effect on the first day of the 3rd month
21beginning after publication.
AB481,11,2322 (2) The treatment of section 134.66 (2) (f) and (4) (a) 1. of the statutes takes
23effect on the first day of the 7th month beginning after publication.
AB481,11,2424 (End)
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