Ch. 2

LAWS OF MARYLAND

licensed wholesaler is the only person entitled to the
discount since a "licensed" wholesaler is the only
person authorized to buy stamps from the Comptroller
and to affix tax stamps.. Although the Comptroller may
collect the tax from any person possessing cigarettes,
no discount is allowed unless the person is a licensed
wholesaler.

Defined terms: "Comptroller" § 1-101

"Licensed wholesaler" § 12-101 "Person" § 1-101

"Tax stamp" § 12-101

12-304. EVIDENCE OF PAYMENT.

(A)  MARKED PACKAGES OF SAMPLES.

A MANUFACTURER THAT PAYS THE TOBACCO TAX SHALL INDICATE
PROMINENTLY ON EACH PACKAGE OF CIGARETTES THAT:

(1)  THE PACKAGE CONTAINS SAMPLE CIGARETTES THAT ARE
NOT FOR SALE; AND

(2)  ALL APPLICABLE TOBACCO TAXES ON THOSE CIGARETTES
HAVE BEEN PAID.

(B)  TAX STAMPS.

(1)  EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS
SECTION, WITHIN 72 HOURS AFTER RECEIVING CIGARETTES IN THE STATE
AND BEFORE SELLING OR ATTEMPTING TO SELL THE CIGARETTES, A
LICENSED WHOLESALER WHO FIRST POSSESSES THE CIGARETTES SHALL
AFFIX, TO THE SMALLEST CIGARETTE PACKAGE, TAX STAMPS:

(I)  IN A TOTAL AMOUNT THAT AT LEAST EQUALS THE
TOBACCO TAX DUE ON THE NUMBER OF CIGARETTES IN THE PACKAGE; AND

(II)  IN THE MANNER THAT THE COMPTROLLER
REQUIRES, INCLUDING PLACING THE TAX STAMPS ON THE CIGARETTE
PACKAGE SO THAT THE STAMPS ARE VISIBLE TO A BUYER.

(2)  IF A TAX STAMP HAS BEEN AFFIXED TO A PACKAGE OF
CIGARETTES, A PERSON MAY NOT AFFIX THE SAME TAX STAMP TO ANOTHER
PACKAGE OF CIGARETTES.

(C)  EXCEPTIONS.

A LICENSED WHOLESALER IS NOT REQUIRED TO AFFIX TAX STAMPS
TO:

(1)  SAMPLE CIGARETTES IF THE CIGARETTE PACKAGE IS
MARKED IN ACCORDANCE WITH SUBSECTION (A) OF THIS SECTION; OR

(2)  CIGARETTES THAT ARE SEGREGATED OR MARKED TO
INDICATE THAT THE CIGARETTES:

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