Mich. Admin. Code R 205.452 — Prescribed markings on ciga rette boxes and shipping cases;

resale and refund of returned cigarettes.
Rule 2. (1) Licensed wholesalers and unclassified acquirers shall submit stamp
orders on the form prescribed by the department. The department shall establish
guidelines for ordering and the timing of shipments, and shall determine the mode of
shipment of an order. On the day of shipment, the department shall fax notice of
shipment to the wholesaler or unclassified acquirer.
(2) Stamps given to a wholesaler or unclassified acquirer are on assignment from the
department to the specific wholesaler or unclassified acquirer.
(3) A licensed wholesaler of cigarettes who receives cigarettes from the
manufacturer at a Michigan location from which deliveries to other states will be made
will report all cigarettes received into its unstamped Michigan inventory. When
cigarettes destined for another state are pulled from
inventory for stamping and export, the cigarettes will be reported as a deduction
on schedule C of the multiple schedule. Such licensed wholesaler may have in its
possession stamps from other states as needed to perform its multistate stamping duties.
The stamps for other states are to be segregated
from Michigan stamps , and the wholesaler must be able to provide
documentation to the department and its representatives of the unaffixed stamps that
are in the wholesaler's possession.
(4) A wholesaler or unclassified acquirer who possesses unaffixed stamps at the time
its license is revoked or expired or at the time it discontinues the business of selling

cigarettes shall return all unaffixed stamps to the department within 14 calendar days
of the date of license revocation, license expiration, or discontinuance of its business.
(5) Beginning September 1, 1998, the refund to wholesalers and unclassified
acquirers of the tax on cigarettes returned to manufacturers is allowed if all of the
following conditions are met:
(a) A cigarette pack returned to a wholesaler or unclassified acquirer by a secondary
wholesaler, retailer, or vending machine operator before September
1, 1998, for return to a manufacturer shall be kept separate from cigarettes returned
to wholesalers on or after September 1, 1998.
(b) A cigarette pack returned to a wholesaler or unclassified acquirer by a secondary
wholesaler, retailer, or vending machine operator on or after September 1, 1998, for
return to the manufacturer must bear the stamp prescribed by the department in order
to qualify for refund or credit of the tax paid.
(c) A refund claim for cigarettes held for return as of September 1, 1998, shall be
submitted separately from any claims for cigarettes received for return on or after
September 1, 1998.
(6) A wholesaler or unclassified acquirer is liable for the amount of the face value
of any stamps which are lost through negligence, theft, or mysterious disappearance
or which are not otherwise accounted for in the records of the wholesaler or
unclassified acquirer. The tax due shall be less the percentage compensation under
section 7(3) of the act. The tax due shall be assessed in accordance with the provisions of
Act No. 122 of the Public Acts of 1941, as amended, being §205 .1 et seq. of the
Michigan Compiled Laws.If identifiable stamps that have been lost through negligence,
theft, or mysterious disappearance are recovered within 4 years of the date of mailing by
the department, then credit will be given against the ta x due, less the percentage
compensation under section 7(3) of the act, if adequate proofs are submitted to the
department.
(7) Relating to the tax liability described under item (6) above, credit may be given
against the tax due, less the percentag e compensation, for the denominated value of
stamps affixed to packs that have been destroyed by fire, flood, or other c asualty
before distribution. The wholesaler or unclassified acquirer must establish by clear and
convincing evidence th at the cigarettes were destroyed by fire, flood, or other
casualty before distribution and must establish the denominated value of the affixed
stamps. "Destroyed," as used in this subrule, refers t o unaffixed stamps which can no
longer be identifie d and affixed to cigarette packs, or stamps which are affixed to
cigarette packs that no longer qualify for return to the manufacturer.