§ 51:421 — Definitions

§421. Definitions
As used in this Subpart:
A. "Retailer" means any person engaged in the business of making
sales at retail within this state, or if any person is engaged in the business of
making sales both at retail and at wholesale, "retailer" shall apply only to the
retail portion of the business.
B. "Wholesaler" means any person engaged in the business of making
sales at wholesale within this state, or if any person is engaged in the business
of making sales both at wholesale and at retail, "wholesaler" shall apply only
to the wholesale portion of the business.
C. "Replacement cost" means the cost per unit at which the
merchandise sold or offered for sale could have been bought by the seller at
any time within thirty days prior to the date of sale or the date upon which it
is offered for sale by the seller if bought in the same quantity as the seller's last
purchase of the merchandise.
D. "Sell at retail," "sales at retail," and "retail sale" mean any transfer
for a valuable consideration, made in the ordinary course of trade or in the
usual prosecution of the seller's business, of title to tangible movable property
to the purchaser for consumption or use other than resale, further processing
or manufacturing.
E. "Sell at wholesale," "sales at wholesale," and "wholesale sales"
mean any transfer for a valuable consideration, made in the ordinary course of
trade or the usual conduct of the seller's business, of title to tangible movable
property to the purchaser for purposes of resale, further processing or
manufacturing.
F. "Cost to the retailer" means the invoice cost, or the replacement cost,
of the merchandise to the retailer, whichever is lower;
(1) Less all trade discounts except customary discounts for cash;
(2) Plus; in the following order:
(a) Freight charges not otherwise included in the invoice cost or the
replacement cost of the merchandise;
(b) Cartage to the retail outlet if done or paid by the retailer, which
cartage cost, in the absence of proof of a lesser cost, shall be three-fourths of
one per cent of the cost to the retailer after adding freight charges but before
adding cartage and markup; and,
(c) A markup to cover a proportionate part of the cost of doing
business, which markup, in the absence of proof of a lesser cost, shall be six
per cent of the cost to the retailer after adding freight charges and cartage.
G. "Cost to the wholesaler" means the invoice cost, or the replacement
cost, of the merchandise to the wholesaler, whichever is lower;
(1) Less all trade discounts except customary discounts for cash and
discounts from the state or any governmental agency allowed for the payment
of collection of any taxes;
(2) Plus; in the following order:
(a) Freight charges, not otherwise included in the invoice cost or the
replacement cost of the merchandise;
(b) Cartage cost which shall be three-fourths of one per cent of the cost
to the wholesaler after adding freight charges but before adding cartage, any
existing tobacco stamp excise tax and markup, and any motor fuels excise tax;
(c) Any existing tobacco stamp excise tax; and,
(d) A markup to cover a proportionate part of the cost of doing
business which markup, in the absence of proof of a lesser cost, shall be two
percent of the cost to the wholesaler after adding freight charges, cartage, any
existing tobacco stamp excise tax, and any motor fuels excise tax; and,
(e) Any motor fuels excise tax.
H. In determining "cost to the retailer" in those cases where the retailer
buys at wholesale and receives the wholesalers' profits and discounts on
merchandise to be sold at retail, both the wholesale markup of two per cent and
the retail markup of six percent, in the absence of proof of a lesser cost, shall
be added to cover a proportionate part of the cost of doing business.
I. When one or more items are advertised, offered for sale, or sold with
one or more other items at a combined price, or are advertised, offered as a
gift, or given with the sale of one or more items, each and all of the items shall
for the purposes of this Subpart be considered, advertised, offered for sale, or
sold, and the price of each item shall be governed by the provisions of
Subsections F, G, and H of this Section.
J. "Cost to the retailer" and "cost to the wholesaler" as defined by
Subsections F, G, and H of this Section means bona fide costs. Purchases
made by retailers and wholesalers at prices which cannot be justified by
prevailing market conditions within this state shall not be used in determining
"cost to the retailer" and "cost to the wholesaler."

Legislative History

Amended by Acts 1956, No. 121, §1; Acts 1999, No. 430, §1.