§ 42-3008 — Refunds; definitions

A. Except as provided in subsection C of this section, the tax imposed by this chapter on any luxury shall be refunded when the amount of the tax has been paid and when one of the following applies:

1. Proof is made to the department that the luxuries were exported from this state or that the stamps have been affixed to luxuries on which stamps are not required.

2. Proof is made to the department that the luxury becomes unfit for sale due to breakage or spoilage within either six months from the date that the distributor originally receives the luxury for sale or two months from the date that the luxury was returned to the distributor by a retailer, whichever occurs later.

3. Within six months after a distributor returns a luxury to the manufacturer or importer, proof of the return is made to the department.

B. The manner of making proof shall be in accordance with rules adopted by the department.

C. The department shall not refund the tax for stamps that are affixed to luxuries that are deemed contraband under this chapter.

D. Except as otherwise provided in section 42-1123, interest is calculated sixty days after receipt by the department of a claim for refund under this section.

E. For the purposes of this section:

1. "Breakage" means damage to the outer wrapping or container of a tobacco product.

2. "Importer" and "manufacturer" have the same meanings prescribed in section 42-3451.

3. "Spoilage" means mutilation, product expiration or unfit for intended consumption.