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H.625

Introduced by   Representative Louras of Rutland City

Referred to Committee on

Date:

Subject:  Tobacco products; reduced ignition propensity cigarettes; nonconforming cigarettes; inventory rights; refunds

Statement of purpose:  This bill proposes to permit some refunds for inventories of cigarettes that are not reduced ignition propensity cigarettes.

AN ACT RELATING TO SHORT‑TERM REFUNDS FOR CIGARETTES THAT ARE NOT REDUCED IGNITION PROPENSITY CIGARETTES

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  REDUCED IGNITION PROPENSITY CIGARETTES; REFUND

             RIGHTS; TAX DEPARTMENT

(a)  Notwithstanding any agreement between a retail dealer and a wholesale dealer, until November 1, 2006, a retail dealer shall be entitled to a refund from the wholesale dealer for any money paid for cigarettes acquired by the retail dealer prior to May 1, 2006, that do not comply with subchapter 2A of chapter 173 of Title 20 and are still in the possession of the retail dealer.

(b)  Notwithstanding any agreement between a stamping agent and a manufacturer, a stamping agent shall be entitled to a refund from the manufacturer for any money paid for cigarettes purchased from the manufacturer that do not comply with subchapter 2A of chapter 173 of Title 20.  The tax commissioner shall refund to a stamping agent any taxes paid pursuant to chapter 205 of Title 32 for cigarette inventory for which the stamping agent received a refund pursuant to this subsection.

(c)  Notwithstanding any agreement between a wholesale dealer and a manufacturer, a wholesale dealer shall be entitled to a refund from the manufacturer for cigarettes purchased from the manufacturer that do not comply with subchapter 2A of chapter 173 of Title 20.  The attorney general shall remove from the directory any manufacturer who fails to make refunds as required pursuant to this section.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us