When used in any part of this chapter, the following words, terms and phrases shall have
the meaning ascribed to them except where the context clearly indicates a different meaning:
1.“Basic cost of cigarettes” shall mean whichever of one of the two following amounts is
lower, less, in either case, all trade discounts and customary discounts for cash, plus one-half
ofthefullfacevalueofanystampswhichmayberequiredbyanycigarettetaxactofthisstate:
a.The true invoice cost of cigarettes to the wholesaler or retailer, as the case may be.
b.The lowest replacement cost of cigarettes to the wholesaler or retailer in the quantity
last purchased.
2.“Cigarettes” shall mean and include any roll for smoking, made wholly or in part of
tobacco, irrespectiveofsizeorshapeandwhetherornotsuchtobaccoisflavo
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When used in any part of this chapter, the following words, terms and phrases shall have
the meaning ascribed to them except where the context clearly indicates a different meaning:
1. “Basic cost of cigarettes” shall mean whichever of one of the two following amounts is
lower, less, in either case, all trade discounts and customary discounts for cash, plus one-half
ofthefullfacevalueofanystampswhichmayberequiredbyanycigarettetaxactofthisstate:
a. The true invoice cost of cigarettes to the wholesaler or retailer, as the case may be.
b. The lowest replacement cost of cigarettes to the wholesaler or retailer in the quantity
last purchased.
2. “Cigarettes” shall mean and include any roll for smoking, made wholly or in part of
tobacco, irrespectiveofsizeorshapeandwhetherornotsuchtobaccoisflavored, adulterated
or mixed with any other ingredient, the wrapper or cover of which is made of paper or any
other substance or material except tobacco.
3. a. “Costtotheretailer”shallmeanthebasiccostofthecigarettesinvolvedtotheretailer
plus the cost of doing business by the retailer as defined in this chapter.
b. The cost of doing business by the retailer is presumed to be eight percent of the basic
cost of cigarettes in the absence of proof of a lesser or higher cost plus the full face value
of any stamps which may be required by any cigarette tax act of this state to the extent not
already included in the basic cost of cigarettes.
c. If any retailer in connection with the retailer’s purchase of any cigarettes shall receive
thediscountsordinarilyalloweduponpurchasesbyaretailerandinwholeorinpartdiscounts
ordinarily allowed upon purchases by a wholesaler, the cost of doing business by the retailer
with respect to the said cigarettes shall be, in the absence of proof of a lesser or higher cost
of doing business, the sum of the cost of doing business by the retailer and, to the extent that
the retailer shall have received the full discounts allowed to a wholesaler, the cost of doing
business by a wholesaler as hereinabove defined in subsection 4, paragraph “b”.
4. a. “Cost to wholesaler” shall mean the basic cost of the cigarettes plus the cost of doing
business by the wholesaler, as defined in this chapter.
b. Thecostofdoingbusinessbythewholesalerispresumedtobefourpercentofthebasic
cost of cigarettes in the absence of proof of a lesser or higher cost, which includes cartage to
the retail outlet, plus the full face value of any stamps which may be required by any cigarette
tax act of this state to the extent not already included in the basic cost of cigarettes.
5. “Person” shall mean and include any individual, firm, association, company,
partnership, corporation, joint stock company, club agency, syndicate, or anyone engaged
in the sale of cigarettes.
6. “Retailer” means any person who is engaged in this state in the business of selling, or
§421B.2, CIGARETTE SALES 2
offering to sell, cigarettes at retail. For purposes of this chapter, a person who does not meet
the definition of retailer or wholesaler but who is engaged in the business of selling cigarettes
in this state to a retailer or final consumer shall be considered a retailer and subject to the
minimum pricing requirements of this chapter.
7. “Sale” and “sell” shall mean and include any transfer for a consideration, exchange,
barter, gift, offer for sale and distribution in any manner or by any means whatsoever.
8. “Sell at retail”, “sale at retail” and “retail sales” shall mean and include any sale or offer
for sale for consumption or use made in the ordinary course of trade of the seller’s business.
9. “Sell at wholesale”, “sale at wholesale”, and “wholesale sales” shall mean and include
any sale or offer for sale made in the course of trade or usual conduct of the wholesaler’s
business to a retailer for the purpose of resale.
10. “Wholesaler” means and includes any person who acquires cigarettes for the purpose
of sale to retailers or to other persons for resale, and who maintains an established place
of business when any part of the business is the sale of cigarettes at wholesale to persons
licensedunderthischapter, andwhereatalltimesastockofcigarettesisavailabletoretailers
for resale.