§ 59-14-409. 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).

Amended by Chapter 382, 2008 General Session