Ch. 2

LAWS OF MARYLAND

(3) 0.65 OF A CENT FOR EACH CIGARETTE IN A PACKAGE OF
MORE THAN 20 CIGARETTES.

(C)  SUPPLEMENTAL RATE.

(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)  RATE FOR SAMPLE CIGARETTES.

THE TOBACCO TAX RATE FOR A PACKAGE OF FREE SAMPLE CIGARETTES
IS 0.65 OF A CENT FOR EACH CIGARETTE.

REVISOR'S NOTE: Subsection (a) of this section is new
language added to clarify the applicability of the
various rates set forth in this section.

Subsections (b) through (d) of this section are new
language derived without substantive change from
former Art. 81, §§ 432(b)(1) and 433.

In subsections (b) through (d) of this section, the
defined term "tobacco tax" is substituted for the
former references to the tax "levied and imposed" and
to a supplemental "State tax", for clarity.

In subsections (b)(3) and (d) of this section, the
references to a rate of "0.65 cent" are substituted
for the former references to "6.5 mills" and "6 1/2
mills", for clarity.

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