59-14-214. Nonparticipating manufacturer equity assessment.
(1) As used in this section, "nonparticipating manufacturer" means a tobacco product
manufacturer, as defined in Subsection 59-22-202(9), that is not a participating manufacturer
within the meaning of Subsection II(jj) of the Master Settlement Agreement, as defined in
Subsection 59-22-202(5).
(2) (a) There is levied an equity assessment, at the rate of 1.75 cents on each cigarette, for
all cigarette packages of nonparticipating manufacturers to which a stamp is affixed as required
under Section 59-14-205.
(b) The equity assessment imposed by this section is in addition to all other assessments,
fees, and taxes levied under existing law.
(c) The equity assessment imposed by this section shall be paid by affixing a stamp in the
manner and at the time described in Section 59-14-205.
(d) Except as otherwise provided in this section, the equity assessment shall be collected,
paid, administered, and enforced in the same manner as the tax on cigarettes levied by Section
59-14-204.
(3) The purposes of this equity assessment are:
(a) to recover health care costs to the state imposed by nonparticipating manufacturers;
(b) to prevent nonparticipating manufacturers from undermining the state's policy of
reducing underage smoking by offering cigarettes for sale substantially below the prices of
cigarettes of other manufacturers;
(c) to protect funding, which is reduced as a result of the growth of nonparticipating
manufacturer cigarette sales, for programs funded in whole or in part by payments to the state
under the Master Settlement Agreement, as defined in Subsection 59-22-202(5);
(d) to recoup settlement-payment revenue lost to the state as a result of nonparticipating
manufacturer cigarette sales; and
(e) to fund enforcement and administration of:
(i) Chapter 14, Part 6, Tobacco Manufacturer Stamping Enforcement Provisions;
(ii) Sections 59-22-201 through 59-22-203, related to nonparticipating manufacturers;
and
(iii) the equity assessment imposed by this section.
(4) (a) Each manufacturer, distributor, wholesaler, or retail dealer who under Section
59-14-205 affixes a stamp to a package of cigarettes, shall report monthly to the commission for
each place of business, the number and denominations of stamps affixed to individual packages
of nonparticipating manufacturer cigarettes sold by the manufacturer, distributor, wholesaler, or
retail dealer in the preceding month, including the manufacturer and brand family.
(b) A person required to file a report under this section is subject to the penalties under
Section 59-1-401 for failing to file a report in a timely manner, or for supplying false or
fraudulent information.
Amended by Chapter 204, 2005 General Session
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Last revised: Thursday, May 28, 2009