Section R15-3-316. Sale of Unstamped Cigarettes

A.      Except as otherwise provided in A.R.S. Title 42, Chapter 3, Article 5, a cigarette distributor shall file the applicable monthly return with the Department, on the form furnished by the Department at www.azdor.gov or an office of the Department, showing that the cigarette distributor has purchased a sufficient number of cigarette tax stamps to be affixed to all cigarettes it distributes in this state during the period. If the cigarette distributor does not provide this information, the Department shall presume that the cigarette distributor sold unstamped cigarettes. In that case, the Department shall determine the amount of unstamped cigarettes sold by the cigarette distributor and shall issue a proposed deficiency assessment for any luxury tax found due. The proposed deficiency assessment becomes final unless the cigarette distributor protests the assessment within 45 days under A.R.S. § 42-1108 and 15 A.A.C. 10, Article 1.

B.       If a retailer maintains or possesses cigarettes at its place of business that, upon the Department’s inspection, are loose or otherwise repackaged in a manner different from that distributed for sale by the cigarette manufacturer, the Department shall presume, unless the retailer establishes the contrary, that the retailer is offering the cigarettes for sale in violation of A.R.S. § 42-3203(E).

Historical Note

Adopted effective March 18, 1981 (Supp. 81-2). Former Section R15-3-316 renumbered to R15-3-312, new Section R15-3-316 renumbered from R15-3-322 and amended effective June 20, 1990 (Supp. 90-2). Amended by final rulemaking at 5 A.A.R. 2168, effective June 15, 1999 (Supp. 99-2). Amended to correct typographical error in citation to Arizona Revised Statues (Supp. 00-1).

Amended by final rulemaking at 14 A.A.R. 4410, effective January 3, 2009 (Supp. 08-4).