SB401 Summary

• Separates little cigars from filtered cigars and eliminates obsolete cigar tax categories, establishing new tax rates of $0.015 per cigar for little cigars and filtered cigars.

• Requires wholesalers to issue computer or machine-generated invoices (not handwritten) that separately state the tobacco tax amount and identify the seller's name.

• Mandates retailers maintain invoices for 90 days at point of sale, then retain records for three years, with failure to do so resulting in confiscation of tobacco products.

• Establishes department-imposed penalties of $500-$1,000 (multiplied by number of violations) for failures to maintain records, reusing containers, or violating Chapter 25 provisions.

• Creates new Section 40-25-16.1 requiring all tobacco distributors to file monthly activity reports and establishes a Department of Revenue website listing permitted and registered distributors; purchases from unlisted entities are subject to confiscation.