H.B. 70

1

CIGARETTE TAX EXEMPTION AMENDMENTS
2 2009 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Evan J. Vickers
5 Senate Sponsor: Dennis E. Stowell
6
7 LONG TITLE
8 Committee Note:
9 The Revenue and Taxation Interim Committee recommended this bill.
10 General Description:
11 This bill amends the Cigarette and Tobacco Tax and Licensing Act relating to
12 exemptions from the state tax on cigarettes.
13 Highlighted Provisions:
14 This bill:
15 . amends a citation to the Internal Revenue Code relating to federal law exemptions
16 that also apply to the state tax on cigarettes; and
17 . makes technical changes.
18 Monies Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 59-14-204.5, as enacted by Laws of Utah 2004, Chapter 217
25
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 59-14-204.5 is amended to read:

28 59-14-204.5. Exemptions -- Application of excise tax on tribal lands.
29 (1) (a) Cigarettes sold to or received by members of a federally recognized Indian tribe
30 that are purchased or received on the tribal lands are not subject to the tax imposed by Section
31 59-14-204 .
32 (b) Cigarettes exempt from tax under [26 U.S.C. Sec. 5701] Section 5704, Internal
33 Revenue Code, and distributed in accordance with federal regulations are not subject to the tax
34 imposed by Section 59-14-204 .
35 (2) (a) (i) The tax applicable to cigarettes sold to or received by nontribal members on
36 tribal lands is equal to the state tax imposed by Section 59-14-204 , minus any tribal tax actually
37 paid.
38 (ii) For purposes of this section, nontribal members includes any person who is not a
39 member of the Indian tribe that is selling the cigarettes.
40 (b) If the application of the tax offset for tribal taxes permitted in Subsection (2)(a)
41 results in a negative balance, the taxes owed to the state are zero.
42 (c) (i) Cigarettes taxed pursuant to this Subsection (2) shall bear a tax stamp as
43 required by Section 59-14-205 in an amount equal to the tax imposed by Section 59-14-204 .
44 (ii) The commission shall at least semi-annually rebate to an Indian tribal entity that is
45 in compliance with this chapter the lesser of:
46 (A) an amount equal to the tribal tax imposed on sales under this Subsection (2); or
47 (B) the face value of the tax stamps affixed to cigarettes sold under this Subsection (2).




Legislative Review Note
as of 11-25-08 3:54 PM

Office of Legislative Research and General Counsel