Whereas, this Act must take effect before the expiration of the 90-day period in order to restore the law regarding cigarette tax stamps that was previously in effect as soon as possible; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 36 MRSA §4366-A, sub-§2, as repealed and replaced by PL 2001, c. 439, Pt. SSSS, §3, is repealed and the following enacted in its place:

2.__Provided to sellers.__The State Tax Assessor shall provide stamps suitable to be affixed to packages of cigarettes as evidence of the payment of the tax imposed by this chapter.__The assessor shall sell cigarette stamps to licensed distributors at a discount of 2.5% of their face value.__The assessor may permit a licensed distributor to pay for the stamps within 30 days after the date of purchase, if a bond satisfactory to the assessor in an amount not less than the sale price of the stamps has been filed with the assessor conditioned upon payment for the stamps.

Sec. 2. Retroactivity. This Act applies retroactively to July 1, 2001.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill changes the law regarding cigarette tax stamps enacted by the First Regular Session of the 120th Legislature by replacing it with the law that was previously in effect. Current law requires the State Tax Assessor to sell cigarette stamps to licensed cigarette distributors at a discount of 2.16% from face value for stamps sold prior to July 1, 2002 and 2.03% for stamps sold on or after July 1, 2002. This bill requires the State Tax Assessor to sell these stamps at a discount of 2.5% from face value and applies this change retroactively to July 1, 2001.