Senate Bill 40 Summary

• Amends Ohio's cigarette minimum pricing law by modifying definitions of "cost to the retailer" and "cost to the wholesaler" to include specific overhead costs and allow the tax commissioner to approve alternative cost calculations with certified public accountant verification.

• Requires wholesaler markup to be 3.5% of invoice cost (plus full face value of cigarette tax stamps), with option for cash and carry discount up to 0.75% if approved by tax commissioner.

• Establishes that retailers cannot sell cigarettes below cost with intent to injure competitors or destroy competition, and wholesalers cannot do so unless the lower cost has been approved by the tax commissioner.

• Creates new section allowing one wholesaler to sell to another wholesaler without including the selling wholesaler's cost, with the purchasing wholesaler then governed by standard pricing requirements upon resale to retailers.

• Permits retailers and wholesalers to meet competitor pricing made in good faith at cost, provided any below-cost sales by wholesalers have tax commissioner approval.