Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 15 - Cigarette Tax
Part 1 - Cigarette Tax (280-RICR-20-15-1)
Section 280-RICR-20-15-1.10 - Purchasing and Applying Indicia

Universal Citation: 280 RI Code of Rules 20 15 1.10

Current through September 18, 2024

A. By Licensed Distributors or Dealers: Payment for indicia must be made at the time of purchase. However, if the purchaser wishes to use the provision for thirty (30) days' credit as provided by law, he or she must file a satisfactory surety bond with the Division of Taxation. The bond must be in an amount not less than the sale price of the indicia averaged over six (6) months' purchases and the bond must be written by a surety company authorized to do business in Rhode Island. A bond form will be supplied on request.

B. By a Nonresident:

1. The licensed nonresident cigarette distributor is required to affix all indicia to the individual packages of cigarettes at the location for which the license is issued. The indicia must be affixed before the packages of cigarettes are shipped into Rhode Island. The licensed nonresident must also agree to comply with all other parts of the Rhode Island cigarette tax law. The nonresident distributors must also file a bond in the amount of one thousand dollars ($1,000) to the Tax Administrator in accordance with all provisions of the law and regulations. The bond must be issued by a surety company licensed to do business in Rhode Island and must be in full force and effect for a period of one year and a day after the expiration of the bond unless a certificate is issued by the Tax Administrator to the effect that all taxes due the State have been paid. Cash will be accepted in lieu of a surety bond.

2. The licensed nonresident distributor must also agree in writing to submit his or her books, accounts and records to examination during reasonable business hours as well as appointing, in writing, the Secretary of State of the State of Rhode Island as his or her agent upon whom service of process may be made in any proceeding involving the administration of the cigarette tax law.

C. Returned Checks: In the event of returned check payments, or electronic payment reversals, the Tax Administrator reserves the right to revoke the license of the distributor or dealer or to require that future payments must be made by certified check or money order.

D. Affixing Indicia: Each distributor must affix, or cause to be affixed, indicia to each individual package of cigarettes in the proper denomination. This process shall be in the manner the Tax Administrator may specify in accordance with the provisions of R.I. Gen. Laws 44-20. The indicia must be applied to each package of cigarettes sold or distributed and the indicia may be applied by the distributor at any time before the cigarettes are transferred out of the distributor's possession.

Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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