2006 Utah Code - 59-14-205 — Stamping procedure -- Rules -- Exceptions.

     59-14-205.   Stamping procedure -- Rules -- Exceptions.
     (1) The taxes imposed on cigarettes by this chapter shall be paid by affixing stamps in the manner and at the time prescribed in this section.
     (2) All manufacturers, importers, distributors, wholesalers, and retail dealers shall securely affix the stamps to each individual package or container of cigarettes sold in the state, and may not sell or provide cigarette stamps to any other person.
     (3) Stamps shall be securely affixed to each individual package of cigarettes within 72 hours after any of the cigarettes are received by any wholesaler, distributor, or retailer within the state. All cigarettes shall be stamped before sale within the state. If products subject to this chapter are manufactured within the state they shall be stamped by the manufacturer when and as sold.
     (4) The commission may, where it is practical and reasonable for the enforcement of the collection of taxes, promulgate rules to permit any of the articles taxable under this chapter to remain unstamped in the hands of the wholesaler or distributor until the original case or crate is broken, unpacked, or sold.
     (5) The commission may permit any manufacturer, wholesaler, or distributor to sell and export to a regular dealer in these articles outside the state, any of the articles without affixing the stamps. Where the articles are allowed to remain unstamped in the hands of the wholesaler or distributor, the commission may require the wholesaler or distributor to secure a surety bond from a surety company authorized to do business in this state. The bond shall be conditioned to secure the payment of all taxes and penalties provided in this chapter.
     (6) No manufacturer, distributor, wholesaler, or retail dealer may remove, conceal, or obscure a cigarette package:
     (a) notice described under Subsection 59-14-210(1)(a)(i); or
     (b) warning label not in compliance with 15 U.S.C. 1333 of the Federal Cigarette Labeling and Advertising Act.
     (7) Any person failing to properly affix and cancel stamps to the cigarettes, under rules promulgated by the commission, may be required by the commission to pay as part of the tax, and in addition to any other penalty provided in this chapter, a penalty of $25 for each offense, to be assessed and collected by the commission as provided in Section 59-14-405. Each article, package, or container found not having proper stamps affixed to it shall be deemed a separate offense. The presence of any package or container in a place of business conducting retail sales shall be prima facie evidence that it is intended for sale and subject to taxes under this chapter.

Amended by Chapter 217, 2004 General Session