57-36 Tobacco Products Tax Law
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<![CDATA[CHAPTER 57-36TOBACCO PRODUCTS TAX LAW57-36-01. Definitions. As used in this chapter, unless the context or subject matterotherwise requires:1."Chewing tobacco" means any leaf tobacco that is intended to be placed in the<br>mouth.2."Cigar" means any roll of tobacco wrapped in tobacco.3."Cigarette" means any roll for smoking made wholly or in part of tobacco and<br>encased in any material except tobacco.4."Consumer" means any person who has title to or possession of cigarettes, cigars,<br>pipe tobacco, or other tobacco products in storage, for use or other consumption in<br>this state.5."Dealer" includes any person other than a distributor who is engaged in the business<br>of selling cigarettes, cigarette papers, cigars, pipe tobacco, or other tobacco<br>products.6."Distributor" includes any person engaged in the business of producing or<br>manufacturing cigarettes, cigarette papers, cigars, pipe tobacco, or other tobacco<br>products, or importing into this state cigarettes, cigarette papers, cigars, pipe<br>tobacco, or other tobacco products, for the purpose of distribution and sale thereof to<br>dealers and retailers.7."Licensed dealer" means a dealer licensed under the provisions of this chapter.8."Licensed distributor" means a distributor licensed under the provisions of this<br>chapter.9."Other tobacco products" means snuff and chewing tobacco.10."Person" means any individual, firm, fiduciary, partnership, corporation, limited<br>liability company, trust, or association however formed.11."Pipe tobacco" means any tobacco that, because of its appearance, type,<br>packaging, or labeling, is suitable for use and likely to be offered to, or purchased by,<br>consumers as tobacco to be smoked in a pipe.12."Sale" or "sell" applies to gifts, exchanges, and barter.13."Snuff" means any finely cut, ground, or powdered tobacco that is intended to be<br>placed in the mouth.14."Storage" means any keeping or retention of cigarettes, cigars, pipe tobacco, or<br>other tobacco products for use or consumption in this state.15."Use" means the exercise of any right or power incidental to the ownership or<br>possession of cigarettes, cigars, pipe tobacco, or other tobacco products.57-36-02.Distributors and dealers to be licensed.Each person engaged in thebusiness of selling cigarettes, cigarette papers, snuff, cigars, or tobacco in this state, including<br>any distributor or dealer, must secure a license from the attorney general before engaging or<br>continuing to engage in business.A separate application and license is required for eachdistributor at each outlet or place of business within the state, and a separate dealer's license isPage No. 1required for each retail outlet when a person owns or controls more than one place of business<br>dealing in cigarettes, cigarette papers, snuff, cigars, or tobacco. No retailer will be granted a<br>distributor's license except a retailer who, in the usual course of business, performed a<br>distributor's or wholesaler's function for at least one year prior to filing the license application.<br>The application prescribed by the attorney general must include the name and address of the<br>applicant, the address and place of business, the type of business, and other information as<br>required for the proper administration of this chapter.Each application for a wholesale ordistributor's outlet license must be accompanied by a fee of twenty-five dollars and a surety bond<br>approved by the attorney general.Each application for a dealer's outlet license must beaccompanied by a fee of fifteen dollars. A reinstatement fee of fifty dollars is required in addition<br>to the annual license fee for each license renewal applied for after June thirtieth.The totalreinstatement fee may not exceed five hundred dollars for any one licensee in any fiscal year. A<br>distributor's license does not authorize the holder to make retail sales. Each license issued must<br>be prominently displayed on the premises covered by the license.57-36-03. License. Each license issued under the provisions of this chapter is valid untilthe first day of July subsequent to the date of issuance unless sooner revoked by the attorney<br>general or unless the business with respect to which such license was issued is transferred, in<br>either of which cases the holder of the license shall return it immediately to the attorney general.<br>The license issued is annual and runs from July first of each year to June thirtieth of the following<br>year.57-36-04.Revocation of license - Penalty.The attorney general may revoke thelicense of any dealer or distributor for failure to comply with any of the provisions of this chapter,<br>or any of the rules or regulations prescribed by the tax commissioner or the attorney general.<br>When a license has been legally revoked, no license may be issued again to the licensee for a<br>period of one year thereafter. A person may not sell any cigarettes, cigarette papers, snuff,<br>cigars, or tobacco after that person's license has been revoked as provided in this chapter.57-36-05.Unlawful to sell without license.A dealer or distributor may not sellcigarettes, cigarette papers, snuff, cigars, or tobacco in this state at wholesale or at retail unless<br>a license has been issued to that dealer or distributor as prescribed by this chapter, and a person<br>may not sell, offer for sale, or possess with the intent to sell, any cigarettes, cigarette papers,<br>snuff, cigars, or tobacco without such license.57-36-05.1. Sale of imported cigarettes - When prohibited. A dealer, distributor, orother person may not sell or distribute in this state any tobacco product previously exported from<br>the United States.57-36-05.2. Sale of noncompliant tobacco products. A dealer, distributor, or otherperson may not knowingly sell or distribute in this state any tobacco product manufactured by a<br>tobacco product manufacturer not in compliance with subsection 2 of section 51-25-02.57-36-06. Cigarettes - Amount of tax. There are levied and assessed, and there mustbe collected and paid to the state tax commissioner, upon all cigarettes sold in this state, the<br>following excise taxes, payment thereof to be made prior to the time of the sale and delivery<br>thereof:1.Class A. On cigarettes weighing not more than three pounds [1360.78 grams] per<br>thousand, five mills on each such cigarette.2.Class B.On cigarettes weighing more than three pounds [1360.78 grams] perthousand, five and one-half mills on each such cigarette.57-36-07. Packaging - Presumption from possession. Cigarettes must be packagedas follows:1.All cigarettes sold or distributed in this state must be in packages containing twenty<br>or more cigarettes each.Page No. 22.Each package of cigarettes displayed, exhibited, stored, or possessed in original<br>cartons or containers upon the premises where consumer sales are made is<br>conclusively presumed to be for sale to consumers.3.All packages of roll-your-own tobacco sold or distributed in this state must be in<br>packages containing at least 0.60 ounces [17 grams] of tobacco.57-36-08. Stamps prepared by commissioner. Repealed by S.L. 1991, ch. 665, </p>
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