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(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.
(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.
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.
(a) If a vendor does not pay the tobacco tax when due under Section 52-67(e), the vendor is subject to a Class C civil penalty for each taxable tobacco product for which a tax has not been paid.
(b) If a vendor does not display to the Director taxable products or records as required under this Article, the Vendor is subject to a Class A civil penalty.
(c) A violation of this Article is not subject to a criminal penalty.
(d) Section 52-21 applies to the tobacco tax imposed 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.
ARTICLE VIII. EXCISE TAX ON ELECTRONIC CIGARETTES.*
Editor’s note—Former Article XIII, Excise Tax on Major Emitters of Carbon Dioxide, consisting of Sections 52-95 through 52-100, derived from 2010 L.M.C., ch. 20, was repealed by 2011 L.M.C., ch. 15, wherein the Director of Finance was directed to return all taxes collected under former Chapter 52, Article XIII, to each taxpayer, along with interest at the rate of return realized by the County while the County held the funds. In GenOn Mid-Atlantic v. Montgomery County, 650 F.3d 1021 (2011), the Court quotes Section 52-95 and cites Section 52-100 in interpreting and declaring the carbon emissions tax in Sec. 52-96 to be a regulatory fee.
In this Article, the following terms have the meanings indicated:
Dealer means any person who engages in a retail business.
Director means the Director of Finance or the Director’s designee.
Distributor means:
(1) a person who supplies an electronic cigarette product to a dealer in the County; or
(2) a person who supplies and services a vending machine with an electronic cigarette product.
Electronic cigarette product means any product containing or delivering nicotine or any other substance intended for human consumption that can be used by a person to simulate smoking through inhalation of vapor or aerosol from the product. The term includes any such device, whether manufactured, distributed, marketed, or sold as an e-cigarette, e-cigar, e-pipe, e-hookah, or vape pen, or under any other product name or descriptor. Electronic cigarette product includes any component, part, or accessory of an electronic cigarette, whether or not sold separately, that is used during the operation of the electronic cigarette, but does not include any battery or battery charger that is sold separately.
Supplying or supplies means the act of providing, furnishing, delivering, distributing, or transmitting an electronic cigarette product by a distributor to a dealer in the County. Liability for the tax accrues when the electronic cigarette product is provided, distributed, or delivered to the dealer in the County. (2015 L.M.C., ch. 26, § 1; 2016 L.M.C., ch. 7, § 2.)
(a) A tax is levied and imposed on every distributor who supplies to a dealer in the County an electronic cigarette product.
(b) The tax rate for an electronic cigarette product is 30% of the wholesale price of the electronic cigarette product.
(c) The County Council by resolution, after a public hearing advertised under Section 52-17(c), may increase or decrease the rate set in subsection (b).
(d) The County Executive may further specify the administration of this tax by Method (2) regulation. (2015 L.M.C., ch. 26, § 1; 2016 L.M.C., ch. 7, § 2.)
(a) The tax levied under Section 52-73 is due and payable for each month on the last day of the next month.
(b) The Director may establish an alternative payment system. If an alternative payment system is established, the Director must require a pro-rated payment for any taxable period that ends before the system takes effect.
(c) If any dealer transports or causes to be transported into the County an electronic cigarette product, that dealer is liable for the payment of the tax imposed under Section 52-73 unless that dealer obtains from the supplier of the electronic cigarette product a written certification, in a form approved by the Director, that the supplier is liable for and is paying the tax. (2015 L.M.C., ch. 26, § 1; 2016 L.M.C., ch. 7, § 2.)
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