H.B. 213

1

CIGARETTE TAX EXEMPTION AMENDMENTS
2 2010 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Evan J. Vickers
5 Senate Sponsor: Dennis E. Stowell
6
7 LONG TITLE
8 General Description:
9 This bill amends the Cigarette and Tobacco Tax and Licensing Act relating to
10 exemptions from the state tax on cigarettes.
11 Highlighted Provisions:
12 This bill:
13 . amends a citation to the Internal Revenue Code relating to federal law exemptions
14 that also apply to the state tax on cigarettes; and
15 . makes technical and conforming changes.
16 Monies Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 None
20 Utah Code Sections Affected:
21 AMENDS:
22 59-14-204.5, as enacted by Laws of Utah 2004, Chapter 217
23
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 59-14-204.5 is amended to read:
26 59-14-204.5. Application of excise tax on tribal lands.
27 (1) (a) Cigarettes sold to or received by members of a federally recognized Indian tribe

28 that are purchased or received on the tribal lands are not subject to the tax imposed by Section
29 59-14-204 .
30 (b) Cigarettes exempt from tax under [26 U.S.C. Sec. 5701] Section 5704, Internal
31 Revenue Code, and distributed in accordance with federal regulations are not subject to the tax
32 imposed by Section 59-14-204 .
33 (2) (a) (i) The tax applicable to cigarettes sold to or received by nontribal members on
34 tribal lands is equal to the state tax imposed by Section 59-14-204 , minus any tribal tax actually
35 paid.
36 (ii) For purposes of this section, nontribal members includes any person who is not a
37 member of the Indian tribe that is selling the cigarettes.
38 (b) If the application of the tax offset for tribal taxes permitted in Subsection (2)(a)
39 results in a negative balance, the taxes owed to the state are zero.
40 (c) (i) Cigarettes taxed pursuant to this Subsection (2) shall bear a tax stamp as
41 required by Section 59-14-205 in an amount equal to the tax imposed by Section 59-14-204 .
42 (ii) The commission shall at least semi-annually rebate to an Indian tribal entity that is
43 in compliance with this chapter the lesser of:
44 (A) an amount equal to the tribal tax imposed on sales under this Subsection (2); or
45 (B) the face value of the tax stamps affixed to cigarettes sold under this Subsection (2).




Legislative Review Note
as of 12-4-09 3:01 PM

Office of Legislative Research and General Counsel