MI SB1004

Caps the tax on individual cigars at 50 cents per cigar from November 1, 2012 through October 31, 2016, while maintaining the 32% wholesale price tax rate for other tobacco products.

Provides stamping agents with compensation of 0.5% of cigarette tax revenue until direct technology upgrade costs are reimbursed, and offers reimbursement of 5.55% of eligible equipment purchase costs for 18 months following digital stamp implementation.

Requires internet, telephone, and mail-order cigarette sellers to verify customer age through government-issued identification and commercially available databases before delivery, and mandates customers sign affidavits affirming legal age.

Mandates that cigarette packages shipped to Michigan customers clearly display "CIGARETTES" on all sides and include a notice informing buyers that the seller has reported the sale to the state tax agency and that buyers are responsible for unpaid state taxes.

Requires retailers selling cigars through catalog or internet sales to post a visible sign informing customers of their responsibility to pay applicable state taxes on those purchases.