3.__Interest and penalties.__The amount of Maine estate tax deferred under this section is subject to interest pursuant to section 186.__Interest payable on the unpaid tax attributable to a 5-year deferral period pursuant to Section 6166 of the Code must be paid annually.__Interest payable on any unpaid tax attributable to any period after the 5-year deferral period must be paid annually at the same time as, and as part of, each installment payment of the tax.__If any payment of principal or interest under this section is not made on or before the due date, the penalities provided by section 187-B apply.

Sec. 35. 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 D, §1, is repealed and the following enacted in its place:

§4365.__Rate of tax

A tax is imposed on all cigarettes imported into this State or held in this State by any person for sale at the rate of 37 mills per cigarette.__Payment of the tax is evidenced by the affixing of stamps to the packages containing the cigarettes.__In the case of an individual who purchases unstamped cigarettes in a quantity greater than 2 cartons from a person other than a licensed distributor or dealer, the tax may be assessed directly by the State Tax Assessor within 3 years from the date of the purchase.

Sec. 36. 36 MRSA §4365-D, as amended by PL 1997, c. 643, Pt. T, §4 and affected by §6 and c. 750, Pt. D, §1, is repealed.

Sec. 37. 36 MRSA §4697, as amended by PL 1997, c. 706, §10 and affected by §17, is further amended to read:

§4697. Reports of production and payment of tax

Every packer shall, on or before the last day of each month, report to the State Tax Assessor the quantity of sardines, kippers, steaks or other canned herring products packed by the packer during the preceding calendar month, on forms furnished by the State Tax Assessor assessor, and pay to the State Tax