Florida Senate - 2016                                     SB 758
       
       
        
       By Senator Clemens
       
       
       
       
       
       27-00962-16                                            2016758__
    1                        A bill to be entitled                      
    2         An act relating to cigarette surcharge and tax;
    3         amending ss. 210.011 and 210.02, F.S.; revising
    4         provisions relating to the surcharge and tax on the
    5         sale, receipt, purchase, possession, consumption,
    6         handling, distribution, and use of cigarettes;
    7         defining the term “standard package of cigarettes”;
    8         amending s. 210.04, F.S.; deleting a provision that
    9         authorizes the Division of Alcoholic Beverages and
   10         Tobacco of the Department of Business and Professional
   11         Regulation to authorize manufacturers to distribute
   12         free sample packages of cigarettes; amending ss.
   13         210.06, 210.085, and 215.5602, F.S.; conforming
   14         provisions; providing an effective date.
   15          
   16  Be It Enacted by the Legislature of the State of Florida:
   17  
   18         Section 1. Section 210.011, Florida Statutes, is amended to
   19  read:
   20         210.011 Cigarette surcharge levied; collection.—
   21         (1) A surcharge of $2, in addition to all other taxes of
   22  every kind levied by law, is levied upon the sale, receipt,
   23  purchase, possession, consumption, handling, distribution, and
   24  use of cigarettes in this state, in the following amounts,
   25  except as otherwise provided in subsections (2)-(5), for a
   26  standard package of cigarettes. For purposes of this section,
   27  the term “standard package of cigarettes” means a package of 20
   28  cigarettes, pursuant to 21 C.F.R. s. 1140.16(b) of standard
   29  dimensions:
   30         (a) Upon all cigarettes weighing not more than 3 pounds per
   31  thousand, 5 cents on each cigarette.
   32         (b) Upon all cigarettes weighing more than 3 pounds per
   33  thousand and not more than 6 inches long, 10 cents on each
   34  cigarette.
   35         (c) Upon all cigarettes weighing more than 3 pounds per
   36  thousand and more than 6 inches long, 20 cents on each
   37  cigarette.
   38         (2) An additional surcharge of 4.2 cents is levied upon
   39  each The descriptions of cigarettes contained in subsection (1)
   40  are declared to be standard as to dimensions for the purpose of
   41  levying a surcharge as provided in this section. If any
   42  cigarette that is received, purchased, possessed, sold, offered
   43  for sale, given away, or used in which is of a package size
   44  other than a those standard package of cigarettes dimensions,
   45  the cigarette is subject to a surcharge at the rate of 4.2 cents
   46  on each cigarette.
   47         (3) When cigarettes as described in paragraph (1)(a) are
   48  packed in varying quantities of 20 cigarettes or fewer, except
   49  the manufacturer’s free samples authorized under s. 210.04(9),
   50  the following rates shall govern:
   51         (a) Packages containing 10 cigarettes or fewer require a
   52  surcharge of 50 cents.
   53         (b) Packages containing more than 10 but not more than 20
   54  cigarettes require a surcharge of $1.
   55         (4) When cigarettes as described in paragraph (1)(b) are
   56  packed in varying quantities of 20 cigarettes or fewer, except
   57  the manufacturer’s free samples authorized under s. 210.04(9),
   58  the following rates shall govern:
   59         (a) Packages containing 10 cigarettes or fewer require a
   60  surcharge of $1.
   61         (b) Packages containing more than 10 but not more than 20
   62  cigarettes require a surcharge of $2.
   63         (5) When cigarettes as described in paragraph (1)(c) are
   64  packed in varying quantities of 20 cigarettes or fewer, except
   65  the manufacturer’s free samples authorized under s. 210.04(9),
   66  the following rates shall govern:
   67         (a) Packages containing 10 cigarettes or fewer require a
   68  surcharge of $2.
   69         (b) Packages containing more than 10 but not more than 20
   70  cigarettes require a surcharge of $4.
   71         (3)(6) This surcharge shall be paid by the dealer to the
   72  division for deposit and distribution as hereinafter provided
   73  upon the first sale or transaction within the state, whether
   74  such sale or transfer is to the ultimate purchaser or consumer.
   75  The seller or dealer shall collect the surcharge from the
   76  purchaser or consumer, and the purchaser or consumer shall pay
   77  the surcharge to the seller. The seller or dealer is responsible
   78  for the collection of the surcharge and payment of the surcharge
   79  to the division. All surcharges are due not later than the 10th
   80  day of the month following the calendar month in which they were
   81  incurred, and thereafter shall bear interest at the rate of 1
   82  percent per month. If the amount of surcharge due for a given
   83  period is assessed without allocating it to any particular
   84  month, the interest begins accruing on the date of the
   85  assessment. Whenever cigarettes are shipped from outside the
   86  state to anyone other than a distributing agent or wholesale
   87  dealer, the person receiving the cigarettes is responsible for
   88  the surcharge on the cigarettes and payment of the surcharge to
   89  the division.
   90         (4)(7) It is the legislative intent that the surcharge on
   91  cigarettes be uniform throughout the state.
   92         (5)(8) The surcharge levied under this section shall be
   93  administered, collected, and enforced in the same manner as the
   94  tax imposed under s. 210.02.
   95         (6)(9) Revenue produced from the surcharge levied under
   96  this section shall be deposited into the Health Care Trust Fund
   97  within the Agency for Health Care Administration.
   98         Section 2. Section 210.02, Florida Statutes, is amended to
   99  read:
  100         210.02 Cigarette tax imposed; collection.—
  101         (1) An excise or privilege tax of 33.9 cents, in addition
  102  to all other taxes of every kind imposed by law, is imposed upon
  103  the sale, receipt, purchase, possession, consumption, handling,
  104  distribution, and use of cigarettes in this state, in the
  105  following amounts, except as hereinafter otherwise provided, for
  106  a standard package of cigarettes. For purposes of this section,
  107  the term “standard package of cigarettes” means a package of 20
  108  cigarettes, pursuant to 21 C.F.R. s. 1140.16(b) of standard
  109  dimensions:
  110         (a) Upon all cigarettes weighing not more than 3 pounds per
  111  thousand, 16.95 mills on each cigarette.
  112         (b) Upon all cigarettes weighing more than 3 pounds per
  113  thousand and not more than 6 inches long, 33.9 mills on each
  114  cigarette.
  115         (c) Upon all cigarettes weighing more than 3 pounds per
  116  thousand and more than 6 inches long, 67.8 mills on each
  117  cigarette.
  118         (2) An additional tax of 1.41 cents is imposed upon each
  119  The description of cigarettes contained in paragraphs (a), (b),
  120  and (c) of subsection (1) are hereby declared to be standard as
  121  to dimensions for taxing purposes as provided in this law and
  122  Should any cigarette that is be received, purchased, possessed,
  123  sold, offered for sale, given away, or used in of a package size
  124  other than a of standard package of cigarettes dimensions, the
  125  same shall be taxed at the rate of 1.41 cents on each such
  126  cigarette.
  127         (3) When cigarettes as described in paragraph (1)(a) are
  128  packed in varying quantities of 20 cigarettes or less, except
  129  manufacturer’s free samples authorized under s. 210.04(9), the
  130  following rate shall govern:
  131         (a) Packages containing 10 cigarettes or less require a
  132  16.95-cent tax.
  133         (b) packages containing more than 10 but not more than 20
  134  cigarettes require a 33.9-cent tax.
  135         (4) When cigarettes as described in paragraph (1)(b) are
  136  packed in varying quantities of 20 cigarettes or less, except
  137  manufacturer’s free samples authorized under s. 210.04(9), the
  138  following rates shall govern:
  139         (a) Packages containing 10 cigarettes or less require a
  140  33.9-cent tax.
  141         (b) Packages containing more than 10 but not more than 20
  142  cigarettes require a 67.8-cent tax.
  143         (5) When cigarettes as described in paragraph (1)(c) are
  144  packed in varying quantities of 20 cigarettes or less, except
  145  manufacturer’s free samples authorized under s. 210.04(9), the
  146  following rates shall govern:
  147         (a) Packages containing 10 cigarettes or less require a
  148  67.8-cent tax.
  149         (b) Packages containing more than 10 but not more than 20
  150  cigarettes require a 135.6-cent tax.
  151         (3)(6) This tax shall be paid by the dealer to the division
  152  for deposit and distribution as hereinafter provided upon the
  153  first sale or transaction within the state, whether or not such
  154  sale or transfer is be to the ultimate purchaser or consumer.
  155  The seller or dealer shall collect the tax from the purchaser or
  156  consumer, and the purchaser or consumer shall pay the tax to the
  157  seller. The seller or dealer is shall be responsible for the
  158  collection of the tax and the payment of the tax same to the
  159  division. All taxes are due not later than the 10th day of the
  160  month following the calendar month in which they were incurred,
  161  and thereafter shall bear interest at the rate of 1 percent per
  162  month. If the amount of tax due for a given period is assessed
  163  without allocating it to any particular month, the interest
  164  begins accruing on shall begin with the date of the assessment.
  165  Whenever cigarettes are shipped from outside the state to anyone
  166  other than a distributing agent or wholesale dealer, the person
  167  receiving the cigarettes is shall be responsible for the tax on
  168  the said cigarettes and the payment of the tax same to the
  169  division.
  170         (4)(7) It is the legislative intent that the tax on
  171  cigarettes shall be uniform throughout the state.
  172         Section 3. Subsection (9) of section 210.04, Florida
  173  Statutes, is amended to read:
  174         210.04 Construction; exemptions; collection.—
  175         (9) Agents, located within or without the state, shall
  176  purchase stamps and affix such stamps in the manner prescribed
  177  to packages or containers of cigarettes to be sold, distributed,
  178  or given away within the state, in which case any dealer
  179  subsequently receiving such stamped packages of cigarettes will
  180  not be required to purchase and affix stamps on such packages of
  181  cigarettes. However, the division may, in its discretion,
  182  authorize manufacturers to distribute in the state free sample
  183  packages of cigarettes containing not less than 2 or more than
  184  20 cigarettes without affixing any surcharge and tax stamps
  185  provided copies of shipping invoices on such cigarettes are
  186  furnished, and payment of all surcharges and taxes imposed on
  187  such cigarettes by law is made, directly to the division not
  188  later than the 10th day of each calendar month. The surcharge
  189  and tax on cigarettes in sample packages shall be based on a
  190  unit in accordance with the surcharges levied under s.
  191  210.011(1) and the taxing provisions of s. 210.02(1).
  192         Section 4. Subsection (5) of section 210.06, Florida
  193  Statutes, is amended to read:
  194         210.06 Affixation of stamps; presumption.—
  195         (5) Except as provided in s. 210.04(9) or s. 210.09(1), no
  196  person, other than a dealer or distributing agent that receives
  197  unstamped cigarette packages directly from a cigarette
  198  manufacturer or importer in accordance with this section and s.
  199  210.085, shall hold or possess an unstamped cigarette package.
  200  Dealers shall be permitted to set aside, without application of
  201  stamps, only such part of the dealer’s stock that is identified
  202  for sale or distribution outside this state. If a dealer
  203  maintains stocks of unstamped cigarette packages, such unstamped
  204  packages shall be stored separately from stamped product
  205  packages. No unstamped cigarette packages shall be transferred
  206  by a dealer to another facility of the dealer within this state
  207  or to another person within this state.
  208         Section 5. Section 210.085, Florida Statutes, is amended to
  209  read:
  210         210.085 Transactions only with permitted manufacturers,
  211  importers, distributing agents, dealers, and retail dealers.
  212  Except as otherwise provided in s. 210.04(9), A manufacturer or
  213  importer, or a distributing agent representing a manufacturer or
  214  importer, may sell or distribute cigarettes to a person located
  215  or doing business within this state only if such person is a
  216  dealer or importer with a valid, current permit under s. 210.15.
  217  A distributing agent may accept cigarettes from a manufacturer
  218  or importer with a valid, current permit for transfer to a
  219  dealer with a valid, current permit but may not own or sell
  220  cigarettes. A dealer may sell or distribute cigarettes to a
  221  person located or doing business within this state only if such
  222  person is a dealer or retail dealer with a valid, current permit
  223  under s. 569.003. A dealer may obtain cigarettes only from a
  224  manufacturer or importer or from a distributing agent or dealer
  225  with a valid, current permit under s. 210.15. A retail dealer
  226  may obtain cigarettes only from a dealer with a valid, current
  227  permit under s. 210.15.
  228         Section 6. Paragraph (a) of subsection (12) of section
  229  215.5602, Florida Statutes, is amended to read:
  230         215.5602 James and Esther King Biomedical Research
  231  Program.—
  232         (12)(a) Beginning in the 2011-2012 fiscal year and
  233  thereafter, $25 million from the revenue deposited into the
  234  Health Care Trust Fund pursuant to ss. 210.011(6) 210.011(9) and
  235  210.276(7) shall be reserved for research of tobacco-related or
  236  cancer-related illnesses. Of the revenue deposited in the Health
  237  Care Trust Fund pursuant to this section, $25 million shall be
  238  transferred to the Biomedical Research Trust Fund within the
  239  Department of Health. Subject to annual appropriations in the
  240  General Appropriations Act, $5 million shall be appropriated to
  241  the James and Esther King Biomedical Research Program, and $5
  242  million shall be appropriated to the William G. “Bill” Bankhead,
  243  Jr., and David Coley Cancer Research Program created under s.
  244  381.922.
  245         Section 7. This act shall take effect July 1, 2016.