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H.B. 213





Chief Sponsor: Evan J. Vickers

Senate Sponsor: Dennis E. Stowell

             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
             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

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