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LAWS OF MARYLAND

Ch. 121

revenues derived from the supplemental tobacco tax imposed
by this Act to fund an Asbestos Removal Fund; making this
Act a supplementary appropriation; making conforming and
clarifying changes; and generally relating to tobacco taxes.

BY repealing and reenacting, with amendments,

Article 81 - Revenue and Taxes

Section 433 and 460

Annotated Code of Maryland

(1980 Replacement Volume and 1984 Supplement)

BY adding to

Article - Education

Section 5-308

Annotated Code of Maryland

(1978 Volume and 1984 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 81 - Revenue and Taxes

433.

(A)  The rate or amount of tax levied and imposed shall be 6
1/2 cents for each ten cigarettes or fractional part thereof when
such cigarettes are in packages containing 20 or fewer cigarettes
each. On packs of cigarettes containing more than 20 cigarettes
each, the first 20 cigarettes in each pack shall be taxed at the
rate of 6 1/2 cents for each 10 cigarettes, and, the tax shall be
6.5 mills per cigarette on each cigarette in excess of 20
contained in each pack.

(B)  (1) AT ANY TIME THE FEDERAL TAX IMPOSED UNDER 26 UNITED
STATES CODE § 5701 (B)(1), AS AMENDED, IS LESS THAN $8 PER
THOUSAND CIGARETTES, THERE SHALL BE A SUPPLEMENTAL STATE TAX FOR
EACH 10 CIGARETTES OR FRACTIONAL PART THEREOF WHEN SUCH
CIGARETTES ARE IN PACKAGES CONTAINING 20 OR FEWER CIGARETTES EACH
AND ON EACH CIGARETTE IN EXCESS OF 20 CONTAINED IN EACH PACK.
THE AMOUNT OR RATE OF THE SUPPLEMENTAL TAX SHALL BE EQUIVALENT TO
THE AMOUNT THE FEDERAL TAX IS LESS THAN $8 PER THOUSAND
CIGARETTES.

(2) ANY SUPPLEMENTAL TAX IMPOSED OR ANY CHANGE IN THE
SUPPLEMENTAL TAX IMPOSED BY THIS SUBSECTION SHALL APPLY TO ALL
CIGARETTES SOLD OR POSSESSED BY A DISTRIBUTOR 10 OR MORE DAYS
AFTER THE EFFECTIVE DATE OF ANY MODIFICATION IN THE FEDERAL TAX
UNDER 26 UNITED STATES CODE § 5701 (B)(1) THAT RESULTS IN THE
IMPOSITION OR CHANGE OF A SUPPLEMENTAL TAX UNDER THIS SUBSECTION.

460.