§ 47:843 — Use of stamps or meter impression required; limitations

Louisiana § 47:843

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§843. Use of stamps or meter impression required; limitations
A. Cigarette tax stamps. (1) In order to enforce the collection of the tax levied by
this Chapter, the secretary shall design and have printed or manufactured stamps of such size
and denomination as may be determined by him and so prepared as to permit them to be
easily affixed to or stamped on containers of cigarettes subject to the tax according to this
Chapter. As an alternative method to enforce the collection of the tax levied by this Chapter,
the secretary may permit dealers, as defined in this Chapter, to use metered stamping
machines or devices by which each container or package may be clearly and legibly stamped
with an impression showing the character and amount of the tax.
(2) No individual package of cigarettes shall be sold or distributed in, into, or from
the state in individual packages containing fewer than twenty cigarettes. No smoking
tobacco intended for use as roll-your-own smoking tobacco for cigarettes shall be sold or
distributed in individual packages containing less than six-tenths of one ounce of smoking
tobacco.
(3) Except as otherwise provided in this Chapter, all packages of cigarettes sold in
or into the state shall bear a stamp as required by this Chapter and no person may sell,
transport, or cause to be transported unstamped cigarettes in, into, or from, or possess
unstamped cigarettes in the state.
B. Discounts. The secretary of the Department of Revenue shall allow wholesale
tobacco dealers of other states who have a direct purchasing contract with a manufacturer and
serving a trade area of retail dealers in this state to purchase Louisiana stamps with benefit
of a five percent discount.
C. Purchase of stamps. (1) All cigarette stamps shall be purchased from and sold
by the secretary of the Department of Revenue.
(2) Any person other than the secretary of the Department of Revenue who sells or
traffics in cigarette tax stamps not affixed to cigarettes, whether the stamps are genuine or
counterfeit, shall be guilty of a felony and punishable as set out in R.S. 47:858.
(3) Cigarette tax stamps shall be sold by the secretary of the Department of Revenue
to bonded registered Louisiana tobacco dealers in the state of Louisiana who hold a valid
stamping agent designation in accordance with R.S. 26:902(2)(a) and who have a direct
purchasing contract with a manufacturer at a discount of five percent from the face value,
when purchased in quantities of not less than one hundred dollars face value, and the same
provisions and discount shall apply where the metered stamping machine or device is used.
(4) Except as otherwise provided in this Section, the stamps shall be sold by the
secretary of the Department of Revenue in less quantity at face value to any and all persons,
firms, partnerships, corporations, and associations of person who hold a valid stamping agent
designation in accordance with R.S. 26:902(2)(a) and are qualified to purchase stamps
hereunder.
(5) Every dealer registered with the state of Louisiana shall be entitled to receive
every month cigarette tax stamps in an amount equal to the amount of his bond furnished
pursuant to R.S. 47:848, without the necessity of paying for the stamps at the time of
purchase. All stamps so advanced shall be paid for not later than thirty days after the date
on which they were advanced.
(6) Any wholesale dealer who fails to timely file the reports and pay the taxes due
on an open account shall forfeit the discount allowed at the time of purchase of such tax
stamps and meter impressions and shall be subject to a penalty of five percent on the amount
of the tax due if the period of delinquency is ten days or less, or twenty percent on the
amount of the tax due if the period of delinquency is greater than ten days, plus any interest
due.
(7) Should any dealer fail to timely pay the tax due on any purchase of tax stamps
or meters as provided in R.S. 47:843(C)(5), all outstanding credit sales of tobacco stamps,
whether delinquent or not, shall become due and payable if the delinquent tax due on the
purchase is not paid within two days after the receipt by the taxpayer of a written demand
sent by the secretary by certified mail. Payment must be made with a cashier's check,
certified check, or cash. If payment is not received within ten days after the mailing of
written demand, the secretary may proceed to effect collection through the taxpayer's bonding
company, or as otherwise provided by Chapter 18, Subtitle II of this Title.
(8) Should any wholesale dealer fail to pay the taxes due as described above, the
secretary of the Department of Revenue may require such dealers to remit the tax due on
purchases of tax stamps and meter impressions upon receipt of such stamps.
(9) The transfer or disposal by a qualified dealer of any benefit herein conferred is
prohibited.
(10) As an additional method of refunding the cost of stamps affixed to damaged
goods as provided in R.S. 47:857, the secretary shall allow a wholesale dealer to present
affidavits evidencing the cost of stamps, less previous discount allowed, affixed to goods
returned to the manufacturer as payment for all or a portion of the price of tax stamps
purchased under this Section. The credit must be in an amount less than or equal to the cost
of stamps or meters purchased per individual invoice.
D. Affixing stamps. (1) No person other than a dealer holding a valid stamping
agent designation under R.S. 26:902(2) may affix a stamp to any package of cigarettes.
Stamps shall be affixed by the dealer, on the smallest container or package of cigarettes that
is subject to the tax, to permit the secretary to readily ascertain by an inspection of any
dealer's stock on hand, whether or not the tax has been paid. The dealer shall cause to be
affixed on every package of cigarettes on which a tax is due, stamps of an amount equaling
the tax due thereon, before any person, firm, partnership, corporation, or association of
persons sells, offers for sale, removes, or otherwise distributes the cigarettes. The stamps
shall be affixed in such a manner that their removal will require continued application of
steam or water and shall be canceled by placing thereon the license number of the dealer.
(2) A dealer shall not affix a stamp to a package of cigarettes if the package:
(a) Does not comply with the Federal Cigarette Labeling and Advertising Act (15
U.S.C. 1331 et seq.) for the placement of labels, warnings, or any other information for a
package of cigarettes to be sold within the United States.
(b) Is labeled "For Export Only", "U.S. Tax Exempt", "For Use Outside U.S.", or
other wording indicating that the manufacturer did not intend that the product be sold in the
United States.
(c) Has been altered by adding or deleting wording, labels, or warnings described in
Subparagraphs (a) and (b) of this Paragraph.
(d) Has been imported into the United States after January 1, 2000, in violation of
26 U.S.C. 5754.
(e) In any way violates federal trademark or copyright laws.
(f)(i) Is manufactured by a tobacco product manufacturer, pursuant to Part XIII of
Chapter 32 of Title 13 of the Louisiana Revised Statutes of 1950, who:
(aa) Is not a participating manufacturer in the Master Settlement Agreement as
defined in R.S. 13:5062; and
(bb) Failed to create a qualified escrow account in accordance with R.S. 13:5063, as
certified by the attorney general's office, for any cigarettes the dealer sold or distributed for
that tobacco product manufacturer.
(ii) For purposes of this Subparagraph, "tobacco product manufacturer" shall have
the meaning ascribed to that phrase by R.S. 13:5062.
(3) Selling a package of cigarettes described in Paragraph (2) of this Subsection, with
or without a stamp, shall be an unfair or deceptive act or practice under the Unfair Trade
Practices and Consumer Protection Law (R.S. 51:1401 et seq.).
(4) It shall be unlawful for any person to sell or distribute in this state, to acquire,
hold, own, possess, or transport, for sale or distribution in this state, or to import or cause
to be imported, into this state for sale or distribution in this state, any cigarettes that do not
comply with all applicable requirements imposed by or pursuant to federal law and federal
implementing regulations.
E. Disposition of funds. After all lawful revenues are paid over to the municipalities
as their portion of the tobacco tax, as provided by R.S. 47:869, and after deduction of the
costs of collection as provided by R.S. 47:868, the remainder of the avails of the tax,
increased by Act No. 252 of the 1970 Regular Session* of the Legislature of Louisiana, shall
be transmitted by the collector to the state treasurer for credit to the state general fund and,
notwithstanding any other provisions of law to the contrary, the amount so credited to the
state general fund shall be utilized for the implementation of the express purposes listed and
specifically enumerated in the provisions of House Bill No. 1643 adopted as Act No. 211 of
the 1970 Regular Session** of the Legislature of Louisiana.
F. Authority to issue rules and regulations. The secretary is hereby authorized to
issue rules and regulations not in conflict herewith in order to make effective the provisions
of this Section.
*Act No. 252 of the 1970 Regular Session amended R.S. 47:841 and 47:843.
**Act No. 211 of the 1970 Regular Session appropriated funds "for the ordinary
expenses of certain departments and purposes of the state and the implementation of certain
programs of state government . . .".

Legislative History

Amended by Acts 1950, No. 18, §1; Acts 1952, No. 107, §1; Acts 1958, No. 438, §2; Acts 1970, No. 252, §§2, 3; Acts 1972, No. 219, §1; Acts 1974, No. 415, §1, eff. Jan. 1, 1975; Acts 1980, No. 135, §1; Acts 1983, No. 166, §1, eff. Oct. 1, 1983; Acts 1984, 1st Ex. Sess., No. 14, §2, eff. March 27, 1984; Acts 1987, No. 378, §1, eff. Aug. 1, 1987; Acts 1990, No. 390, §3, eff. Aug. 1, 1990; Acts 1997, No. 658, §2; Acts 1999, No. 304, §1, eff. July 1, 1999; Acts 1999, No. 1265, §2, eff. July 12, 1999; Acts 2001, No. 652, §1, eff. June 22, 2001; Acts 2002, 1st Ex. Sess., No. 96, §1, eff. April 18, 2002; Acts 2006, No. 108, §2, eff. July 1, 2006; Acts 2006, No. 454, §2, eff. June 15, 2006; Acts 2007, No. 474, §1; Acts 2013, No. 221, §3; Acts 2016, 1 st Ex. Sess., No. 5, §1, eff. April 1, 2016; Acts 2016, No. 640, §1.