Ch. 284

LAWS OF MARYLAND

[(a) Except as provided in subsection (d) of this section,
the] THE tobacco tax rate is:

[(1) the base tobacco tax rate under subsection (b)
of this section; and

(2) if applicable, the supplemental tobacco tax rate
under subsection (c) of this section.

(b)  The base tobacco tax rate is:]

(1)  6.5 cents for each package of 10 or fewer
cigarettes;

(2)  13 cents for each package of at least 11 and not
more than 20 cigarettes; [and]

(3)  0.65 of a cent for each cigarette in a package of
more than 20 cigarettes[.

(c)   (1) If the federal tax rate for cigarettes under 26
United States Code § 5701(b)(1) is decreased to a rate that is
less than 0.8 of a cent for each cigarette, the supplemental
tobacco tax rate is:

(i) the amount of the federal tax rate decrease
below 0.8 of a cent for each cigarette multiplied by 10 for a
package of 10 or fewer cigarettes;

(ii) the amount of the federal tax rate
decrease below 0.8 of a cent for each cigarette multiplied by 20
for a package of at least 11 but not more than 20 cigarettes; and

(iii) the amount of the federal tax rate
decrease below 0.8 of a cent for each cigarette multiplied by the
number of cigarettes in a package of more than 20 cigarettes.

(2)  A supplemental tobacco tax rate under paragraph
(1) of this subsection is effective as of the 30th day after the
effective date of a change in the federal tax rate that imposes
or changes the supplemental tobacco tax rate.

(3)  All cigarettes in the possession of or sold by a
wholesaler on or after the effective date of a supplemental
tobacco tax rate under paragraph (2) of this subsection are taxed
at the increased rate.

(d)  The tobacco tax rate for a package of free sample
cigarettes is]; AND

(4)  0.65 of a cent for each cigarette IN A PACKAGE OF
FREE SAMPLE CIGARETTES.

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