| Be it enacted by the People of the State of Maine as follows: |
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| | Sec. 2. 36 MRSA §4365, as amended by PL 1997, c. 643, Pt. T, §3 and | affected by §6 and c. 750, Pt. D, §1, is repealed and the | following enacted in its place: |
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| | 1.__Tax beginning November 1, 1997.__Beginning November 1, | 1997, as a public health measure, the tax imposed under this | section is 37 mills per cigarette. |
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| | 2.__Tax beginning November 1, 1999.__Beginning November 1, | 1999, the tax imposed under this section is 68.5 mills per | cigarette. |
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| | Sec. 3. 36 MRSA §4365-E is enacted to read: |
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| §4365-E.__Rate of tax beginning November 1, 1999 |
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| | Beginning November 1, 1999, the following provisions apply to | cigarettes held for resale on that date. |
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| | 1.__Stamped rate.__Cigarettes stamped at the rate of 37 mills | per cigarette and held for resale after October 31, 1999 are | subject to tax at the rate of 68.5 mills per cigarette. |
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| | 2.__Liability.__A person possessing cigarettes for resale is | liable for the difference between the tax rate of 68.5 mills per | cigarette and the tax rate of 37 mills per cigarette in effect | before November 1, 1999.__Stamps indicating payment of the tax | imposed by this section must be affixed to all packages of | cigarettes held for resale as of November 1, 1999, except that | cigarettes held in vending machines as of that date do not | require that stamp. |
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| | 3.__Vending machines.__Notwithstanding any other provisions of | this chapter, it is presumed that all cigarette vending machines | are filled to capacity on November 1, 1999 and the tax imposed by | this section must be reported on that basis.__A credit against | this inventory tax must be allowed for cigarettes stamped at the | 68.5 mill rate placed in vending machines before November 1, | 1999. |
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| | 4.__Payment.__Payment of the tax imposed by this section must | be made to the State Tax Assessor by February 1, 2000, | accompanied by forms prescribed by the assessor. |
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