HRS § 245-22 — Affixation; required prior to distribution; method and manner


§245-22 Affixation; required prior to
distribution; method and manner. (a) Beginning January 1, 2001, a
licensee or the authorized agent or designee of a licensee shall affix a stamp
to the bottom of each individual package of cigarettes prior to distribution.
(b) Beginning April 1, 2001, no individual
package of cigarettes may be sold or offered for sale to the general public
unless affixed with the stamp required under this section.
(c) Beginning April 1, 2001, no cigarette
package may be placed or stored in a vending machine unless affixed with the
stamp required under subsection (a).
(d) The department shall adopt rules
describing the method and manner in which stamps are to be affixed to packages
of cigarettes.
(e) For the purpose of allowing compensation
for the costs necessarily incurred in affixing the proper tax stamps to each
package of cigarettes prior to distribution, each licensee or authorized agent
or a designee of a licensee purchasing stamps from the department may purchase
the stamps at a reduction of 0.4 per cent of the denominated value of each
stamp purchased. The reduction shall be the only discount allowed to
purchasers from the department. If a purchaser does not comply with all of the
provisions of title 14, the licensee shall pay the full denominated value of
the stamps purchased until the licensee has complied. The department may
increase or decrease the 0.4 per cent reduction by rule under chapter 91.