CHAPTER 10A – COLLECTION OF STATE CIGARETTE TAXES
§ 375. Definitions.
§ 376. Reports to State tobacco tax administrator.
(b) Presumptive evidence.
§ 377. Penalties.
§ 378. Jurisdiction to prevent and restrain violations
Sec. 375. Definitions
For the purposes of this chapter –
(1) The term ”person” includes corporations, companies,
associations, firms, partnerships, societies, and joint stock
companies, as well as individuals.
(2) The term ”cigarette” means any roll for smoking made
wholly or in part of tobacco, irrespective of size or shape and
whether or not such tobacco is flavored, adulterated, or mixed
with any other ingredient, the wrapper or cover of which is made
of paper or any other substance or material except tobacco.
(3) The term ”distributor licensed by or located in such
State” means –
(A) in the case of any State which by State statute or
regulation authorizes the distribution of cigarettes at
wholesale or retail, any person so authorized, or
(B) in the case of any other State, any person located in
such State who distributes cigarettes at wholesale or retail;
but such term in no case includes a person who acquires
cigarettes for purposes other than resale.
(4) The term ”use”, in addition to its ordinary meaning,
means the consumption, storage, handling, or disposal of
(5) The term ”tobacco tax administrator” means the State
official duly authorized to administer the cigarette tax law of a
(6) The term ”State” includes the District of Columbia,
Alaska, Hawaii, and the Commonwealth of Puerto Rico.
(7) The term ”transfers for profit” means any transfer for
profit or other disposition for profit, including any transfer or
disposition by an agent to his principal in connection with which
the agent receives anything of value.
Sec. 376. Reports to State tobacco tax administrator
Any person who sells or transfers for profit cigarettes in interstate commerce, whereby such cigarettes are shipped into a State taxing the sale or use of cigarettes, to other than a distributor licensed by or located in such State, or who advertises or offers cigarettes for such a sale or transfer and shipment, shall –
(1) first file with the tobacco tax administrator of the State
into which such shipment is made or in which such advertisement
or offer is disseminated a statement setting forth his name and
trade name (if any), and the address of his principal place of
business and of any other place of business; and
(2) not later than the 10th day of each calendar month, file
with the tobacco tax administrator of the State into which such
shipment is made, a memorandum or a copy of the invoice covering
each and every shipment of cigarettes made during the previous
calendar month into such State; the memorandum or invoice in each
case to include the name and address of the person to whom the
shipment was made, the brand, and the quantity thereof.
(b) Presumptive evidence
The fact that any person ships or delivers for shipment any cigarettes shall, if such shipment is into a State in which such person has filed a statement with the tobacco tax administrator under subsection (a)(1) of this section, be presumptive evidence
(1) that such cigarettes were sold, or transferred for profit, by such person, and (2) that such sale or transfer was to other than a distributor licensed by or located in such State.
Sec. 377. Penalties
Whoever violates any provision of this chapter shall be guilty of a misdemeanor and shall be fined not more than $1,000, or imprisoned not more than 6 months, or both.
Sec. 378. Jurisdiction to prevent and restrain violations
The United States district courts shall have jurisdiction to prevent and restrain violations of this chapter.
The Jenkins Act
There has been a lot of talk lately about the Jenkins Act. The Jenkins Act requires anyone who sells cigarettes into any state, to report those sales to each state monthly. This would include your name and order information. Native Americans are exempt from the Jenkins Act because we are independent nations under our federal treaties. That is the reason that we do not pay, or collect, state taxes.