The Florida Senate

¹210.011  Cigarette surcharge levied; collection.--

(1)  A surcharge, in addition to all other taxes of every kind levied by law, is levied upon the sale, receipt, purchase, possession, consumption, handling, distribution, and use of cigarettes in this state, in the following amounts, except as otherwise provided in subsections (2)-(5), for cigarettes of standard dimensions:

(a)  Upon all cigarettes weighing not more than 3 pounds per thousand, 5 cents on each cigarette.

(b)  Upon all cigarettes weighing more than 3 pounds per thousand and not more than 6 inches long, 10 cents on each cigarette.

(c)  Upon all cigarettes weighing more than 3 pounds per thousand and more than 6 inches long, 20 cents on each cigarette.

(2)  The descriptions of cigarettes contained in subsection (1) are declared to be standard as to dimensions for the purpose of levying a surcharge as provided in this section. If any cigarette is received, purchased, possessed, sold, offered for sale, given away, or used which is of a size other than those standard dimensions, the cigarette is subject to a surcharge at the rate of 4.2 cents on each cigarette.

(3)  When cigarettes as described in paragraph (1)(a) are packed in varying quantities of 20 cigarettes or fewer, except the manufacturer's free samples authorized under s. 210.04(9), the following rates shall govern:

(a)  Packages containing 10 cigarettes or fewer require a surcharge of 50 cents.

(b)  Packages containing more than 10 but not more than 20 cigarettes require a surcharge of $1.

(4)  When cigarettes as described in paragraph (1)(b) are packed in varying quantities of 20 cigarettes or fewer, except the manufacturer's free samples authorized under s. 210.04(9), the following rates shall govern:

(a)  Packages containing 10 cigarettes or fewer require a surcharge of $1.

(b)  Packages containing more than 10 but not more than 20 cigarettes require a surcharge of $2.

(5)  When cigarettes as described in paragraph (1)(c) are packed in varying quantities of 20 cigarettes or fewer, except the manufacturer's free samples authorized under s. 210.04(9), the following rates shall govern:

(a)  Packages containing 10 cigarettes or fewer require a surcharge of $2.

(b)  Packages containing more than 10 but not more than 20 cigarettes require a surcharge of $4.

(6)  This surcharge shall be paid by the dealer to the division for deposit and distribution as hereinafter provided upon the first sale or transaction within the state, whether such sale or transfer is to the ultimate purchaser or consumer. The seller or dealer shall collect the surcharge from the purchaser or consumer, and the purchaser or consumer shall pay the surcharge to the seller. The seller or dealer is responsible for the collection of the surcharge and payment of the surcharge to the division. All surcharges are due not later than the 10th day of the month following the calendar month in which they were incurred, and thereafter shall bear interest at the rate of 1 percent per month. If the amount of surcharge due for a given period is assessed without allocating it to any particular month, the interest begins accruing on the date of the assessment. Whenever cigarettes are shipped from outside the state to anyone other than a distributing agent or wholesale dealer, the person receiving the cigarettes is responsible for the surcharge on the cigarettes and payment of the surcharge to the division.

(7)  It is the legislative intent that the surcharge on cigarettes be uniform throughout the state.

(8)  The surcharge levied under this section shall be administered, collected, and enforced in the same manner as the tax imposed under s. 210.02

(9)  Revenue produced from the surcharge levied under this section shall be deposited into the Health Care Trust Fund within the Agency for Health Care Administration.

History.--s. 3, ch. 2009-79.

¹Note.--Section 8, ch. 2009-79, provides that:

"(1)  The additional surcharges imposed by ss. 210.011 and 210.276, Florida Statutes, are levied upon existing inventory on July 1, 2009. On July 1, 2009, each manufacturer, distributing agent, wholesale dealer, retail dealer, as defined in s. 210.01, Florida Statutes, and manufacturer, distributor, and retailer, as defined in s. 210.25, Florida Statutes, in the state shall take an inventory of the cigarettes and other tobacco products in its possession before opening for business. The amount of inventory shall be certified to the Division of Alcoholic Beverages and Tobacco of the Department of Business and Professional Regulation on or before July 21, 2009, and shall include documentation accompanied by certified check, money order, or an electronic funds transfer for the amount of the additional surcharge due on the inventory. For the purpose of calculating the tax due by a retailer on the inventory of tobacco products other than cigarettes under s. 210.276, Florida Statutes, the wholesale sales price shall equal 75 percent of the price paid by the retailer to a distributor or manufacturer. The manufacturer, distributing agent, wholesale dealer, retail dealer, distributor, or retailer may pay the surcharge in four equal installments of 25 percent of the total amount due. If the manufacturer, distributing agent, wholesale dealer, retail dealer, distributor, or retailer chooses to pay in installments, it must pay the first installment by July 21, 2009, along with the required documentation; the second installment by August 10, 2009; the third installment by August 30, 2009; and the fourth installment by September 9, 2009. Chapter 210, Florida Statutes, relating to penalties and interest for delinquent payments, applies to this section. The proceeds of the additional surcharge on the existing inventory shall be deposited into the Health Care Trust Fund within the Agency for Health Care Administration.

"(2)  For the purpose of compensating each manufacturer, distributing agent, wholesale dealer, retail dealer, distributor, and retailer for taking an inventory of the cigarettes and other tobacco products in its possession and remitting the surcharge levied on these products, each manufacturer, distributing agent, wholesale dealer, retail dealer, distributor, and retailer may deduct 5 percent of the amount of the surcharge due and certified and remitted to the Division of Alcoholic Beverages and Tobacco of the Department of Business and Professional Regulation as a collection allowance.

"(a)  The collection allowance may not be granted, nor may any deduction be permitted, if the required documentation or surcharge is delinquent at the time of payment.

"(b)  The Division of Alcoholic Beverages and Tobacco of the Department of Business and Professional Regulation may deny the collection allowance if a manufacturer, distributing agent, wholesale dealer, retail dealer, distributor, or retailer of products files incomplete documentation. For the purposes of the surcharge on inventory, a return is incomplete if it is lacking the information necessary to ascertain the surcharge due."