Signed by Governor Gretchen Whitmer

Vote Smart's Synopsis:

Vote to pass a bill that establishes a sunset cap for taxes on cigars and cigarettes.

Highlights:

• Requires the licensee to pay to the department the tax levied in subsection (1) for tobacco products sold during the calendar month covered by the return, less compensation equal to the following (Sec. 7-3):

• 1% of the total amount of the tax due on tobacco products sold other than cigarettes;

• Through July 31, 2002, 1.25% of the total amount of the tax due on cigarettes sold; and

• Beginning August 1, 2002, 1.5% of the total amount of the tax due on cigarettes sold and, beginning on June 20, 2012, for sales of untaxed cigarettes to Indian tribes in this state, an amount equal to 1.5% of the total amount of the tax due on those cigarettes sold as if those cigarette sales were taxable sales under this act.

• Authorizes the Department of the Treasury to require the payment of the tax imposed by this act upon the importation or acquisition of a tobacco product. A tobacco product for which the tax under this act has once been imposed and that has not been refunded if paid is not subject upon a subsequent sale to the tax imposed by this act (Sec. 7-6).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes a sunset cap for taxes on cigars and cigarettes.

Highlights:

• Requires the licensee to pay to the department the tax levied in subsection (1) for tobacco products sold during the calendar month covered by the return, less compensation equal to the following (Sec. 7-3):

• 1% of the total amount of the tax due on tobacco products sold other than cigarettes;

• Through July 31, 2002, 1.25% of the total amount of the tax due on cigarettes sold; and

• Beginning August 1, 2002, 1.5% of the total amount of the tax due on cigarettes sold and, beginning on June 20, 2012, for sales of untaxed cigarettes to Indian tribes in this state, an amount equal to 1.5% of the total amount of the tax due on those cigarettes sold as if those cigarette sales were taxable sales under this act.

• Authorizes the Department of the Treasury to require the payment of the tax imposed by this act upon the importation or acquisition of a tobacco product. A tobacco product for which the tax under this act has once been imposed and that has not been refunded if paid is not subject upon a subsequent sale to the tax imposed by this act (Sec. 7-6).

Full Bill Text