§ 12-105

# (a)

The tobacco tax rate for cigarettes is:

(1) $5.00 for each package of 20 cigarettes; and

(2) 25 cents for each cigarette in a package of more than 20 cigarettes.

# (b)

# (1)

Except as provided in paragraph (2) of this subsection, the tobacco tax rate for other tobacco products is 60% of the wholesale price of the tobacco products.

# (2)

(i) In this paragraph, “pipe tobacco” and “premium cigars” have the meanings stated in § 16.5–101 of the Business Regulation Article.

(ii) 1. Except as provided in subsubparagraph 2 of this subparagraph, the tobacco tax rate for cigars is 70% of the wholesale price of the cigars.
2. The tobacco tax rate for premium cigars is 15% of:
A. the wholesale price of the premium cigars; or
B. for premium cigars sold by an out–of–state seller, the price determined under subsection (c) of this section.

(iii) The tobacco tax rate for pipe tobacco is 30% of:
1. the wholesale price of the pipe tobacco; or
2. for pipe tobacco sold by an out–of–state seller, the price determined under subsection (c) of this section.

# (c)

# (1)

For premium cigars and pipe tobacco sold by an out–of–state seller, the tobacco tax rate applies to:

(i) the actual price paid by an out–of–state seller for a stock keeping unit; or

(ii) if the actual price paid by an out–of–state seller for a stock keeping unit is not available, the average of the actual price paid by an out–of–state seller for a stock keeping unit over the 12 calendar months before January 1 of the year in which the sale occurs.

# (2)

The Comptroller shall adopt regulations to implement this subsection.