Section R15-3-302. Tobacco Products from Manufacturers Not Participating in the Master Settlement Agreement

A.      In this Section:

1.        “Cigarette” has the same meaning as prescribed in A.R.S.

§ 44-7101, Section 2(d).

2.        “Department”   means   the   Arizona    Department   of Revenue.

3.        “Excise taxes” means taxes imposed on cigarettes under

A.R.S. Title 42, Chapter 3.

4.        “Master Settlement Agreement” has the meaning prescribed in A.R.S. § 44-7101, Section 2(e).

5.        “Non-participating manufacturer” means a tobacco product manufacturer that is not a participating manufacturer.

6.        “Original participating manufacturers” means Brown & Williamson Tobacco Corporation, Lorillard Tobacco Company, Philip Morris Incorporated, and R.J. Reynolds Tobacco Company, and the respective successors of each of them.

7.        “Participating manufacturer” means the original participating manufacturers and subsequent participating manufacturers.

8.        “Subsequent participating manufacturers” means tobacco product manufacturers that have become signatories to the Master Settlement Agreement but that are not original participating manufacturers, and the  respective successors of each of them.

9.        “Tobacco distributor” means a distributor as prescribed in

A.R.S. § 42-3001.

10.     “Tobacco product manufacturer” has the same meaning as prescribed in A.R.S. § 44-7101, Section 2(i).

B.       The Department shall maintain a current list of participating manufacturers and make it available to tobacco distributors.

C.      A tobacco distributor shall report monthly to the Department on a form provided by the Department:

1.        The brand names of each non-participating manufacturer’s cigarettes received by the tobacco distributor in Arizona;

2.        The brand names of each non-participating manufacturer’s cigarettes received by the tobacco distributor outside Arizona and sold by the tobacco distributor in Arizona;

3.        The name and address of the non-participating manufacturer of each brand of cigarettes identified by the tobacco distributor;

4.        The number of individual cigarettes of each brand of each non-participating manufacturer sold in Arizona by the tobacco distributor during the preceding month, separately stating:

a.        The number of cigarette packages sold and the number of individual cigarettes in each package; and

b.        The number of “roll-your-own” tobacco containers sold and the number of individual cigarettes in each container;

5.        The amount of excise taxes paid or to be paid on the cigarettes addressed in subsection (C)(4), separately stating:

a.        The amount of excise taxes paid by purchasing and affixing tax stamps to cigarette packages;

b.        The amount of excise taxes to be paid with the tobacco distributor’s tax return for “roll-your-own” tobacco containers; and

c.        Any other amount of excise taxes paid or to be paid on the cigarettes not addressed in subsections (C)(5)(a) or (b);

6.        The number of individual cigarettes of each brand of each non-participating manufacturer received by the tobacco distributor in Arizona, separately stating:

a.        The number of cigarette packages received and the number of individual cigarettes in each package; and

b.        The number of “roll-your-own” tobacco containers received and the number of individual cigarettes in each container;

7.        The number of individual cigarettes of each brand of each non-participating manufacturer that the tobacco distributor exported from Arizona without payment of excise taxes, separately stating;

a.        The number of cigarette packages exported and the number of individual cigarettes in each package; and

b.        The number of “roll-your-own” tobacco containers exported and the number of individual cigarettes in each container;

8.        The number of individual cigarettes of each brand of each non-participating manufacturer for which the tobacco distributor obtained a tax refund under A.R.S. § 42-3008, separately stating:

a.        The number of cigarette packages for which the tobacco distributor obtained a tax refund and the number of individual cigarettes in each package; and

b.        The number of “roll-your-own” tobacco containers for which the tobacco distributor obtained a tax refund and the number of individual cigarettes in each container; and

9.        The invoice number (and if subsequently requested by the Department, a copy of each invoice) relating to the tobacco distributor’s:

a.        Purchase or acquisition of any non-participating manufacturer’s cigarettes received or sold by the tobacco distributor in Arizona; and

b.        Export, if any, of any non-participating manufacturer’s cigarettes from Arizona.

D.      A tobacco distributor shall file the report required under subsection (C) with the Department by the 20th day of the month following the month for which the report is made. Reports for cigarettes sold in Arizona after April 24, 2000, and before the effective date of this Section are due 60 days after the effective date of this Section.

E.       A tobacco distributor shall maintain all records relating to or reflecting its purchase and sale of non-participating manufacturers’ cigarettes after April 24, 2000, for a period of four years after the date of sale. The tobacco distributor shall make the records available to the Department upon request by the Department.

F.       Subject to the requirements of R15-3-308, the Department may revoke a license issued to a tobacco distributor under

A.R.S. § 42-3201 if the tobacco distributor fails to comply with this Section, based on the severity of the violations.

Historical Note

Adopted effective March 18, 1981 (Supp. 81-2). Former Section R15-3-302 renumbered to R15-3-301, new Section R15-3-302 renumbered from R15-3-304 and amended effective June 20, 1990 (Supp. 90-2). Section repealed by final rulemaking at 5 A.A.R. 2168, effective June 15, 1999 (Supp. 99-2). New Section made by final rulemaking at 8 A.A.R. 459, effective January 10, 2002 (Supp. 02-1). Amended by final rulemaking at 14 A.A.R.

4410, effective January 3, 2009 (Supp. 08-4).