Ch. 2                                    LAWS OF MARYLAND

12-301. "LICENSED WHOLESALER" DEFINED.

IN THIS SUBTITLE, "LICENSED WHOLESALER" MEANS A WHOLESALER
WHO IS LICENSED UNDER ARTICLE 56, § 613 OF THE CODE TO ENGAGE IN
THE BUSINESS OF A WHOLESALER.

REVISOR'S NOTE: This section is new language added to avoid
repetition of phrases such as a "person licensed under
Article 56, § 613 of the Code to engage in the
business of a cigarette wholesaler".

Defined term: "Wholesaler" § 12-101

12-302. PAYMENT REQUIRED.

(A)  MANUFACTURERS.

A MANUFACTURER OF SAMPLE CIGARETTES SHALL PAY THE TOBACCO
TAX ON THOSE CIGARETTES DISTRIBUTED IN THE STATE WITHOUT CHARGE,
IN THE MANNER THAT THE COMPTROLLER REQUIRES BY REGULATION, WITH
THE RETURN THAT COVERS THE PERIOD IN WHICH THE MANUFACTURER
DISTRIBUTED THOSE CIGARETTES.

(B)  WHOLESALERS.

THE WHOLESALER WHO FIRST POSSESSES IN THE STATE UNSTAMPED
CIGARETTES FOR WHICH TAX STAMPS ARE REQUIRED SHALL PAY THE
TOBACCO TAX ON THOSE CIGARETTES BY BUYING AND AFFIXING TAX
STAMPS.

REVISOR'S NOTE: Subsection (a) of this section is new
language substituted for the first clause of former
Art. 81, § 432(b)(2), which enabled the Comptroller to
allow the payment of tax on sample cigarettes "by
report". This substitution is based on COMAR
03.02.02.09, which regulates the tax payment and
reporting procedures for sample cigarettes.

Subsection (b) of this section is new language derived
without substantive change from the second clause of
the first sentence of former Art. 81, § 434 and,
except the reference to stamps, § 437.

In subsection (b) of this section, the word "affixing"
is added to clarify that tax stamps must be bought and
affixed for the tax to be considered paid. See §
12-304(b) of this subtitle.

Also in subsection (b) of this section, the defined
term "licensed wholesaler" is substituted for the
former word "distributor", for clarity. For a
discussion of the word "wholesaler", see the General
Revisor's Note to Subtitle 1 of this title.

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