Definitions -- Credit or refund for tax paid on cigarette or tobacco product that is destroyed or returned to the manufacturer -- Interest -- Rulemaking authority

# (1)

As used in this section, "licensed person" means a person:

# (a)

licensed by the commission in accordance with Section 59-14-202; and

# (b)

that is a:

(i) distributor;

(ii) jobber;

(iii) manufacturer;

(iv) retailer;

(v) wholesaler; or

(vi) a person similar to a person described in Subsections (1)(b)(i) through (v) as determined by the commission by rule.

# (2)

A licensed person may apply to the commission for a credit or refund as provided in Subsection (3) if:

# (a)

on or after July 1, 2005, the following are removed from retail sale or from storage:

(i) a cigarette; or

(ii) a tobacco product;

# (b)

before a cigarette or tobacco product is removed from retail sale or from storage in accordance with Subsection (2)(a), the licensed person remits a tax:

(i) to the commission;

(ii) on the:

(A) cigarette; or

(B) tobacco product; and

(iii) in accordance with:

(A) Part 2, Cigarettes; or

(B) Part 3, Tobacco Products; and

# (c)

the licensed person verifies to the commission that the cigarette or tobacco product described in Subsection (2)(a) has been:

(i) returned to the manufacturer of the cigarette or tobacco product; or

(ii) destroyed.

# (3)

The amount of the credit or refund described in Subsection (2) is equal to:

# (a)

for a cigarette removed from retail sale or from storage, the amount of tax the licensed person paid on the cigarette in accordance with Part 2, Cigarettes; or

# (b)

for a tobacco product removed from retail sale or from storage, the amount of tax the licensed person paid on the tobacco product in accordance with Part 3, Tobacco Products.

# (4)

# (a)

The commission shall grant a credit or refund under this section if the commission determines that a licensed person meets the requirements of Subsection (2).

# (b)

In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules establishing procedures and requirements for a licensed person to verify to the commission that a cigarette or tobacco product described in Subsection (2)(a) has been:

(i) returned to the manufacturer of the cigarette or tobacco product; or

(ii) destroyed.

# (5)

# (a)

If the commission makes a credit or refund under this section within a 90-day period after the day on which a licensed person submits an application to the commission for the credit or refund, interest may not be added to the amount of credit or refund.

# (b)

If the commission makes a credit or refund under this section more than 90 days after the day on which a licensed person submits an application to the commission for the credit or refund, interest shall be added to the amount of credit or refund as provided in Section 59-1-402.

# (6)

# (a)

The commission may create a form for:

(i) a licensed person to:

(A) submit a claim for a credit or refund; or

(B) verify to the commission that a cigarette or tobacco product has been:

(I) returned to the manufacturer of the cigarette or tobacco product; or

(II) destroyed; or

(ii) processing a claim for a credit or refund for payment.

# (b)

In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining a person similar to a person described in Subsections (1)(b)(i) through (v).