HB404 Summary

• Separates little cigars from filtered cigarette-sized cigars and sets tax at $0.015 per cigar for each category, while eliminating obsolete cigar tax brackets based on retail price.

• Requires wholesalers to issue computer or machine-generated invoices with seller's name and separately stated tobacco tax amounts; handwritten invoices are prohibited and considered invalid documentation.

• Mandates retailers maintain purchase invoices for 90 days at retail locations and keep records for three years; failure to maintain proper invoices may result in product confiscation.

• Adds new reporting requirements requiring wholesalers, jobbers, semijobbers, and retailers to file monthly activity reports to the Department of Revenue and establishes a public web site listing permitted and registered tobacco distributors.

• Establishes department-imposed civil penalties of $500-$5,000 (multiplied by number of violations) for record-keeping violations and reuse of stamped containers, replacing or supplementing criminal penalties; effective October 1, 2014.