§ 5305 — Levy of tax, limitation; exemption [For application of this section, see 81 Del. Laws, c. 55, § 28(a)]

Delaware § 5305

• Jurisdiction: Delaware
• Title: 30
• Part: Commodity Taxes
• Ch. 53: Tobacco Product Taxation and Licensing
• Subch.: Levy and Collection of Tax; License, Stamps

Text

(a) An excise tax is imposed and assessed upon the sale or use of cigarettes within this State at the rate of 105 mills per cigarette. This tax applies only once to the same pack of cigarettes. In the event the tax computed according to this subsection results in a tax per pack or other unit of sale to which this tax applies involving a fraction of a cent, the tax applicable to that pack or other unit must be computed by rounding the tax to the next higher whole cent.

(b) A tax is imposed and assessed upon the sale or use of all tobacco products, except those tobacco products taxed under subsection (a) or (c) of this section, within this State at the rate of 30% of the wholesale price on such products.

(c) (1) A tax is imposed and assessed upon the sale or use of moist snuff within this State at the rate of 92 cents per ounce and a proportionate tax at the like rate on any fractional parts of an ounce. The per ounce tax imposed under this subsection must be computed based on the net weight as listed by the manufacturer.

(2) An excise tax is imposed and assessed upon the sale or use of vapor products within this State at the rate of 5 cents per fluid milliliter of vapor product. The tax imposed by this paragraph (c)(2) of this section must be computed based on the amount of vapor product in milliliters as listed by the manufacturer. All invoices for vapor products issued by a manufacturer must state the amount of vapor product in milliliters.

(d) No tax imposed by this chapter may be levied upon the possession or sale of tobacco products which this State is prohibited from taxing under the Constitution or statutes of the United States.

(e) If the seller and purchaser have registered with the Department and obtained exemption certificates, the following sales are exempt:

(1) Sales to veterans’ organizations approved by the Department, if the tobacco products are being purchased by the organization for gratuitous issue to veteran patients in federal, state, or state-aided hospitals;

(2) Sales to patients in Veterans’ Administration Hospitals by retail dealers located in such hospitals.

(f) [Transferred definitions for “cigar” and “wholesale price”, appearing in former (f)(1) and (2), to § 5301 of this title.]

Legislative History

30 Del. C. 1953, § 5305; 54 Del. Laws, c. 296, § 1 ; 55 Del. Laws, c. 111, § 1 ; 57 Del. Laws, c. 136, § 21 ; 58 Del. Laws, c. 291, § 1 ; 64 Del. Laws, c. 231, § 1 ; 65 Del. Laws, c. 441, § 1 ; 66 Del. Laws, c. 3, §§ 1, 2 ; 67 Del. Laws, c. 280, §§ 1, 5, 6 ; 74 Del. Laws, c. 54, §§ 1, 2 ; 76 Del. Laws, c. 74, §§ 3, 4 ; 76 Del. Laws, c. 75, § 1 ; 77 Del. Laws, c. 73, § 1 ; 81 Del. Laws, c. 55, § 3