WILLIAM DONALD SCHAEFER, Governor                         Ch. 464

Article - Tax - General

12-104.

(a)     "Consumer" means a person who possesses cigarettes for a purpose other
than selling or transporting the cigarettes.

(b)     The tobacco tax does not apply to cigarettes that:

(1)     a person is holding for sale outside the State or to a United States armed
forces exchange or commissary;

(2)     a consumer brings into the State:

(i) if the quantity brought from another state does not exceed:

1. for a nonresident consumer traveling through this State, 1

carton; or

2. for any other consumer, 2 packages; or

(ii) if the quantity brought from a United States armed forces
installation or reservation does not exceed:

1.       for a consumer who is a member of an armed forces unit or
who is entitled by law to make a purchase at an armed forces exchange, 2 cartons; or

2.       for any other consumer, 2 packages that were bought at an
armed forces exchange or commissary;

(3)     a person is transporting by vehicle in the State if the person has, in the
vehicle, the records required by § 16-219 of the Business Regulation Article for the
transportation of cigarettes; or

(4)     are held in storage in a [warehouse facility operated by a] licensed
[manufacturer's warehouse operator] STORAGE WAREHOUSE.

12-201.

(a)     A manufacturer shall complete and file with the Comptroller a tobacco tax
return:

(1)     on or before the 15th day of the month that follows the month in which
the manufacturer distributes in the State free sample cigarettes of the manufacturer; and

(2)     if the Comptroller so specifies, by regulation, on other dates for each
month in which the manufacturer does not distribute any sample cigarettes.

(b)     A licensed [manufacturer's] STORAGE warehouse operator shall file the
information return that the Comptroller requires.

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