Florida Regulations 61A-10.026: Sale of Stamped, Untaxed Cigarettes by Stamping Agents or Wholesale Dealers to Indians for Retail Sale, Reporting
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(1) Stamping agents or wholesale dealers may sell stamped but untaxed cigarettes only to the Seminole Indian Tribe or to an enrolled member thereof exclusively for retail sale on Seminole Indian Reservation or trust lands when such cigarettes have Division approved stamps affixed. For purposes of this section, stamped but untaxed cigarettes will be referred to as “”Indian cigarettes.””
(2) Indian cigarettes may be sold only to a retail business exclusively owned and operated by the Seminole Indian Tribe or an enrolled member thereof for retail sale exclusively by such Tribe or member on Seminole Reservation or trust lands.
(3) Each designated stamping agent selling any such stamped but untaxed cigarettes to the Seminole Indian Tribe or to an enrolled member thereof shall obtain and provide to the Division the following report and records:
(a) The invoice or sales slip substantiating any such tax-free sale shall be attached to the monthly report. The invoice or sales slip must be signed by a person authorized to receive such stamped but untaxed cigarettes.
(b) The name of any person authorized to receive and sign for such tax-free cigarettes shall be submitted by the designated stamping agent to the Division.
(c) A written statement which sets forth all persons or entities holding a direct or indirect interest in the retail business, located on Seminole Indian Reservation or trust lands, purchasing Indian cigarettes and all persons or entities entitled to share in any profits or income of the retail business purchasing such cigarettes. This statement shall be obtained prior to any sales of stamped but untaxed cigarettes to any retail business located on Indian Reservations or trust lands. Any changes in interest or entitlement to share of profits or income shall be reported to the Division. Statements shall be kept on file for a period of three years and shall be available for inspection and review by the Division.
(4) All inventories of cigarettes bearing stamps which are to be sold to the Seminole Indian Tribe or an enrolled member thereof for sale on Indian Reservations or trust lands must be kept in a separate and secure bonded area of the wholesale dealer’s warehouse so as not to allow the commingling of taxed cigarettes bearing stamps with untaxed cigarettes bearing stamps. A log of all receipts and withdrawals must be maintained for the secured area by the stamping agent.
(5) No stamping agent shall be authorized to receive any Indian cigarettes which have been spoiled, damaged, or become stale unless such stamping agent originally applied the stamp to the Indian cigarettes.
(6) All stamping agents who apply stamps to cigarettes must separate taxable cigarettes from nontaxable Indian cigarettes prior to cancellation of cigarette tax stamps by the Division. Since there is no tax paid there can be no refund of tax for spoiled, damaged, or stale Indian cigarettes.
(7) Any sales of stamped but untaxed cigarettes by a stamping agent not in strict conformity with the provisions of this rule shall be deemed a taxable sale and such stamping agent shall be liable for payment of such taxes.
Specific Authority 210.09, 210.10(1), 210.11 FS. Law Implemented U.S.C. Const. Art I §8, cl. 3, U.S.C. Const. Art VI cl. 2, 25 U.S.C. §§ 261-264, 210.05(5), 210.09 FS. History-New 10-14-79, Formerly 7A-10.26, Amended 12-31-85, Formerly 7A-10.026, Amended 9-2-08.
Terms Used In Florida Regulations 61A-10.026
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
(3) Each designated stamping agent selling any such stamped but untaxed cigarettes to the Seminole Indian Tribe or to an enrolled member thereof shall obtain and provide to the Division the following report and records:
(a) The invoice or sales slip substantiating any such tax-free sale shall be attached to the monthly report. The invoice or sales slip must be signed by a person authorized to receive such stamped but untaxed cigarettes.
(b) The name of any person authorized to receive and sign for such tax-free cigarettes shall be submitted by the designated stamping agent to the Division.
(c) A written statement which sets forth all persons or entities holding a direct or indirect interest in the retail business, located on Seminole Indian Reservation or trust lands, purchasing Indian cigarettes and all persons or entities entitled to share in any profits or income of the retail business purchasing such cigarettes. This statement shall be obtained prior to any sales of stamped but untaxed cigarettes to any retail business located on Indian Reservations or trust lands. Any changes in interest or entitlement to share of profits or income shall be reported to the Division. Statements shall be kept on file for a period of three years and shall be available for inspection and review by the Division.
(4) All inventories of cigarettes bearing stamps which are to be sold to the Seminole Indian Tribe or an enrolled member thereof for sale on Indian Reservations or trust lands must be kept in a separate and secure bonded area of the wholesale dealer’s warehouse so as not to allow the commingling of taxed cigarettes bearing stamps with untaxed cigarettes bearing stamps. A log of all receipts and withdrawals must be maintained for the secured area by the stamping agent.
(5) No stamping agent shall be authorized to receive any Indian cigarettes which have been spoiled, damaged, or become stale unless such stamping agent originally applied the stamp to the Indian cigarettes.
(6) All stamping agents who apply stamps to cigarettes must separate taxable cigarettes from nontaxable Indian cigarettes prior to cancellation of cigarette tax stamps by the Division. Since there is no tax paid there can be no refund of tax for spoiled, damaged, or stale Indian cigarettes.
(7) Any sales of stamped but untaxed cigarettes by a stamping agent not in strict conformity with the provisions of this rule shall be deemed a taxable sale and such stamping agent shall be liable for payment of such taxes.
Specific Authority 210.09, 210.10(1), 210.11 FS. Law Implemented U.S.C. Const. Art I §8, cl. 3, U.S.C. Const. Art VI cl. 2, 25 U.S.C. §§ 261-264, 210.05(5), 210.09 FS. History-New 10-14-79, Formerly 7A-10.26, Amended 12-31-85, Formerly 7A-10.026, Amended 9-2-08.