Sec. 52-65. Reserved.

   Editor’s note—Former Section 52-65, Collection and administration; interest and penalties; violation; lien; annual report; use of funds, derived from 1997 L.M.C., ch. 34, §1 and 2016 L.M.C., ch. 7, §2, was repealed by 2021 L.M.C., ch. 3, §1.

ARTICLE VII. TOBACCO TAX.

Sec. 52-66. Definitions .

   Unless the context indicates otherwise, in this Article the following terms have the meanings indicated:

   (a)   Cigar means a roll of tobacco wrapped in leaf tobacco or any other substance containing tobacco. A cigar does not include a cigarette.

   (b)   Cigarette has the meaning stated in Section 12-101, Tax-General Article of the Maryland Code.

   (c)   Cigarette tobacco means any loose-leaf tobacco that, because of its appearance, type, packaging, or labeling, is suitable or intended to be smoked in a cigarette but which is not wrapped in paper or any other non-tobacco material. Cigarette tobacco does not include a cigarette.

   (d)   Consumer means a person who buys a cigar, cigarette tobacco, pipe tobacco, snuff, or spit tobacco to use the product or give the product to another for personal use.

   (e)   Director means the Director of Finance or a designee of the Director.

   (f)   Pipe tobacco means any tobacco that, because of its appearance, type, packaging, or labeling, is suitable or intended to be smoked in a pipe.

   (g)   Snuff means any finely cut, ground, or powdered tobacco that is not intended to be smoked.

   (h)   Spit tobacco means leaf tobacco that is intended to be chewed and not smoked.

   (i)   Vendor means a person who receives a cigar, cigarette tobacco, pipe tobacco, snuff, or spit tobacco for sale to a consumer. (1998 L.M.C., ch. 34, § 1; 2001 L.M.C., ch. 28, §§ 13, 15 and 16; 2016 L.M.C., ch. 7, § 2.)

   Editor’s note­The effective date of the amendments made to this section by 2001 L.M.C., ch. 28, § 13, is the same effective date as 1998 L.M.C., ch. 34, § 1.

Sec. 52-67. Imposition of tax.

   (a)   Each vendor must pay to the Director a tax in the amount listed in subsection (c) for cigars, cigarette tobacco, pipe tobacco, snuff, or spit tobacco that the vendor receives at a site in Montgomery County from which the vendor intends to sell the taxable tobacco product to a consumer.

   (b)   The Director must calculate the tax on each cigar and package of cigarette tobacco, pipe tobacco, snuff, and spit tobacco that the vendor intends to offer for sale to a consumer. If the vendor does not intend to offer to sell the taxable tobacco product in a pre-packaged quantity, the Director must calculate the tax on the smallest packages in which the vendor receives the taxable tobacco product.

   (c)   The tax rate on:

      (1)   Cigars is:

         (A)   3 cents for each cigar that weighs 3 pounds or less per 1000 cigars; and

         (B)   6 cents for each cigar that weighs more than 3 pounds per 1000 cigars.

      (2)   Cigarette tobacco is:

         (A)   36 cents for each package containing 1.5 ounces or less; or

         (B)   for each package containing more than 1.5 ounces, 36 cents for each unit or fraction or a unit containing 1.5 ounces.

      (3)   Pipe tobacco is:

         (A)   36 cents for each package containing 1.5 ounces or less; or

         (B)   for each package containing more than 1.5 ounces, 36 cents for each unit or fraction or a unit containing 1.5 ounces.

      (4)   Snuff is:

         (A)   36 cents for each package containing 1.5 ounces or less; or

         (B)   for each package containing more than 1.5 ounces, 36 cents for each unit or fraction of a unit containing 1.5 ounces.

      (5)   Spit tobacco is:

         (A)   36 cents for each package containing 3 ounces or less; or

         (B)   for each package containing more than 3 ounces, 36 cents for each unit or fraction of a unit containing 3 ounces.

      The County Council, by resolution, after holding a public hearing advertised under Section 52-17(c), may increase or decrease the tax rate on any product taxed under this Article.

   (d)   The tax imposed under this Article is due when the vendor takes physical possession of the taxable tobacco product.

   (e)   Each vendor must pay to the Director the tax imposed under this Article, along with a monthly report of all tobacco products subject to tax under this Article that the vendor received during a calendar month, by the 25th day of the next month. The monthly report must be submitted on a form approved by the Director, and must identify the quantity and number of items of each taxable product which the vendor received during the preceding calendar month.

   (f)   If a vendor sells the business from which taxable products are sold or otherwise stops doing business, the vendor must pay all taxes due under this Article, and submit any monthly report not previously submitted, within 3 days.

   (g)   If a vendor does not pay all taxes due under this Article, or does not keep accurate records as required by this Article, the Director may obtain other information on which the Director may base an estimate of the tax due. The Director may then calculate the tax due and assess that amount, and all applicable interest and penalties, against the vendor or any other person liable for the tax. The Director must notify the person from whom the tax is due by mail to that person's last known address, and the person must pay all tax due within 10 days after receiving the notice. (1998 L.M.C., ch. 34, § 1; 2001 L.M.C., ch. 28, §§ 13, 15 and 16; 2016 L.M.C., ch. 7, § 2.)

   Editor’s note­The effective date of the amendments made to this section by 2001 L.M.C., ch. 28, § 13, is the same effective date as 1998 L.M.C., ch. 34, § 1.

Sec. 52-68. Tobacco Tax - Exemption.

   (a)   Any agency of the State or the United States is not subject to the tobacco tax imposed under this Article.

   (b)   The tax imposed under this Article applies to any tobacco product that is not subject to the State tobacco tax. (1998 L.M.C., ch. 34, § 1; 2001 L.M.C., ch. 28, §§ 13, 15 and 16; 2016 L.M.C., ch. 7, § 2.)

   Editor’s note­The effective date of the amendments made to this section by 2001 L.M.C., ch. 28, § 13, is the same effective date as 1998 L.M.C., ch. 34, § 1.

Sec. 52-69. Enforcement.

   (a)   A vendor must display to the Director, or another person designated by the County Executive, packages of tobacco products taxable under this Article to allow the County to decide if the vendor has paid the tax due under this Article.

   (b)   A vendor must keep complete and accurate records of all transactions involving tobacco products that are taxable under this Article, as required by the Director. A vendor must display to the Director records of the vendor's business to allow the Director to decide if the vendor has paid the tax due under this Article. The Director may audit the vendor's records.

   (c)   The Director, or another person designated by the County Executive, may issue a subpoena to inspect the records of a vendor to decide if the vendor has paid the tax due under this Article. (1998 L.M.C., ch. 34, § 1; 2001 L.M.C., ch. 28, §§ 13, 15 and 16; 2016 L.M.C., ch. 7, § 2.)

   Editor’s note­The effective date of the amendments made to this section by 2001 L.M.C., ch. 28, § 13, is the same effective date as 1998 L.M.C., ch. 34, § 1.

Sec. 52-70. Overdue tax - interest.

   If the vendor does not pay the tax when due under Section 52-67(e), the vendor must pay to the Director, in addition to the tax due, interest at the rate of one percent for each month or fraction of a month that the tax is overdue. (1998 L.M.C., ch. 34, § 1; 2001 L.M.C., ch. 28, §§ 13, 15 and 16; 2016 L.M.C., ch. 7, § 2.)

   Editor’s note­The effective date of the amendments made to this section by 2001 L.M.C., ch. 28, § 13, is the same effective date as 1998 L.M.C., ch. 34, § 1.