Instructions For Form M-19 - Cigarette And Tobacco Products Monthly Tax Return

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INSTRUCTIONS
STATE OF HAWAII—DEPARTMENT OF TAXATION
FORM M-19
INSTRUCTIONS FOR FORM M-19
(Rev. 2011)
CIGARETTE AND TOBACCO PRODUCTS MONTHLY TAX RETURN
Changes to Note for 2011
For sales, use, or possession of little cigars
who during the month preceding the accrual of
on and after July 1, 2011, the tax is imposed
the tax made substantial sales to retailers of
Act 59, SLH 2010, increases the tax on
at the rate of $.16 per little cigar.
like tobacco products, the average price of the
sales, and (2) If made by any other person, the
cigarettes and little cigars to $.16 for
Definition of Certain Terms
each cigarette or little cigar sold, used, or
average price of sales to retailers of like tobacco
products made by other taxpayers in the same
possessed by a wholesaler or dealer on and
Used in Chapter 245, HRS
after July 1, 2011.
county during the month preceding the accrual
of the tax.
“Cigarette” means any roll for smoking made
General Instructions
“Wholesaler” means a person rendering
wholly or in part of tobacco, irrespective of the
a distribution service who buys and maintains,
size and shape and whether or not the tobacco
Form M-19 is used to report the monthly sales,
at the person’s place of business, a stock of
is flavored, adulterated, or mixed with any other
use, or possession (as defined in section 245-1,
cigarettes, little cigars, or tobacco products that
ingredient, the wrapper or cover of which is made
Hawaii Revised Statutes (HRS)) of cigarettes and
the person uses, possesses, or distributes only to
of paper or any other substance or material
tobacco products.
retailers, or other wholesalers, or both.
except tobacco.
Caution: Use Form M-19 (Rev. 2011) for
“Dealer” means any person coming into the
Export and Foreign Cigarettes
sales, use, or possession of cigarettes and
possession of cigarettes, little cigars, or tobacco
tobacco products after June 30, 2011. For sales,
Prohibited
products which have not been acquired from
use, or possession of cigarettes and tobacco
an authorized permit holder or licensee under
products occurring after June 30, 2010, and
It is unlawful for an entity to possess, keep,
chapter 245, HRS, or any person rendering a
before July 1, 2011, use Form M-19 (Rev. 2010).
store, retain, transport, sell, or offer to sell,
distribution service who buys and maintains,
distribute, acquire, hold, own, import, or cause to
at the person’s place of business, a stock of
Cigarette Tax
be imported into the State any of the cigarettes
cigarettes, little cigars, or tobacco products that
described in section 245-51, HRS.
have not been acquired from a licensee and who
Sections 245-21 and 245-22, HRS, provide
distributes or uses such cigarettes, little cigars, or
that licensees, as defined in section 245-1,
Stamping or Sale of
tobacco products.
HRS, shall pay the cigarette tax through the use
Cigarettes Not Listed in the
of cigarette tax stamps and that licensees are
“Distribute”, “distributes”, or “distribution”
required to place cigarette tax stamps on packs
means to sell, ship, transfer, give, or deliver to
Directory Prohibited
of cigarettes prior to distribution, as defined in
another, or to leave, barter, or exchange with
section 245-1, HRS.
another, or to offer or agree to do the same.
Beginning December 1, 2003, unless the
Section 245-3, HRS, increases the cigarette
cigarette package is exempted under section 245-
“Large cigar” means any roll for smoking
tax from $.15 per cigarette to $.16 per cigarette
3(b), HRS, it is unlawful (a) to affix a cigarette tax
made wholly or in part of tobacco if such
beginning on July 1, 2011. Licensees, as defined
stamp to any cigarette package whose tobacco
product is wrapped in any substance containing
in section 245-1, HRS, may continue to use their
product manufacturer or brand family is not
tobacco and weighs more than four pounds per
existing inventory of cigarette tax stamps with the
listed in the directory established under chapter
thousand.
denominated value of $3.00 (yellow stamps) after
486P, HRS, or (b) to import, sell, offer, keep,
“Little cigar” means any roll for smoking
June 30, 2011 if licensees pay the price difference
store, acquire, transport, distribute, receive, or
made wholly or in part of tobacco if such product
between the yellow stamps and the cigarette tax
possess for sale or distribution cigarettes of a
is wrapped in any substance containing tobacco,
stamps with the denominated value of $3.20 (light
tobacco product manufacturer or brand family
other than natural leaf tobacco, and weighs not
gray stamps) on all affixed and/or unused yellow
not included in the directory. Any violation will be
more than four pounds per thousand rolls.
stamps in their ending inventory at the close of
guilty of a class C felony.
“Possession” means knowingly having direct
business on June 30, 2011. Form M-107 (Rev.
To
determine
whether
the
cigarette
physical control at a given time or knowingly
2011), Cigarette Tax Stamps Floor Stock Return,
manufacturer or brand family is listed in such
having the power and the intention, at a given
is used to pay the price difference. All licensees
directory, please visit the Tobacco Enforcement
time, to exercise dominion or control, either
approved to purchase cigarette tax stamps are
Unit, Department of the Attorney General’s
directly or through another entity.
required to submit Form M-107 (Rev. 2011)
website at:
The
along with any amount due to the Department
“Sale” includes every act of selling and
Tobacco Enforcement Unit also may be contacted
of Taxation by July 20, 2011. Failure to do so
includes any sale or act of selling that originates
as follows:
may result in the suspension of the licensees’
from any order that is placed or submitted by
approval to purchase cigarette tax stamps. Once
means of a telephonic or other method of voice
Correspondence:
Form M-107 (Rev. 2011) and all amounts due
transmission, the mail, or any other delivery
TOBACCO ENFORCEMENT UNIT
and payable are remitted in July 2011, the yellow
service, or the Internet or other online service.
Department of the Attorney General
stamps will be valued at the denominated value
425 Queen Street
“Ship”, or “causes to be shipped” means to
of $3.20 per stamp.
Honolulu, Hawaii 96813
send by any means of transportation, including
by vessel, vehicle, or aircraft.
Tobacco Tax
Telephone: (808) 586-1203
“Tobacco products” means tobacco in any
Section 245-3, HRS, imposes the tobacco tax
form other than cigarettes or little cigars, that
Retail Tobacco Permit
as follows:
is prepared or intended for consumption or for
personal use by humans, including large cigars
For sales, use, or possession of tobacco
Every retailer engaged in the retail sale of
and any substitutes thereof other than cigarettes
products (other than cigarettes, large cigars,
cigarettes and other tobacco products upon
that bear the semblance thereof, snuff, chewing
and little cigars) on and after September 30,
which the cigarette and tobacco tax is required
or smokeless tobacco, and smoking or pipe
2009, the tax is imposed at the rate of 70
to be paid shall obtain a retail tobacco permit. An
tobacco.
percent of the wholesale price of the tobacco
entity that operates as a dealer or wholesaler and
products.
“Use” means the exercise of any right or
also sells cigarettes or other tobacco products to
power incident to ownership or possession, other
For sales, use, or possession of large cigars of
consumers at retail shall acquire a separate retail
than the sale, or the keeping or retention for the
any length on and after September 30, 2009,
tobacco permit.
purpose of sale.
the tax is imposed at the rate of 50 percent of
Who Must File
“Wholesale price”, in addition to any other
the wholesale price of the large cigars.
meaning of the term, means in the case of a tax
Every wholesaler or dealer as defined above
upon the use of tobacco products, or upon a sale
must file Form M-19.
not made at wholesale: (1) If made by a person

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