AB 910 — Relating to: remote sellers of cigars and pipe tobacco. (FE)

TheOn tax imposed under this subsection on cigars shall not exceed an amount equal to 50 cents for each LRBs0279/1 - 2024 Legislature - 4 - KP:cdc S ECTION 8 cigar.On products imported from another country, not including moist snuff and,and vapor products, cigars, and pipe tobacco, the rate of tax is 71 percent of the amount obtained by adding the manufacturer's list price to the federal tax, duties and transportation costs to the United States.

On moist snuff imported from another country, the rate of the tax is 100 percent of the amount obtained by adding the manufacturer's list price to the - 2024 Legislature - 4 - LRB-2323/3 KP:amn ASSEMBLY BILL 910 SECTION 8 federal tax, duties, and transportation costs to the United States.

The Excepttax asattaches providedat the time the tobacco products are received by the distributor in sub.this state, except that for cigars and pipe tobacco sold by a remote retail seller, the tax attaches at the time the remote retail seller makes a remote retail sale of cigars or pipe tobacco to a consumer.

(1p), the tax attaches at the time the tobacco products are received by the distributor in this state.

SSECTION ECTION 9.

139.76 (1p)(1e) of the statutes is created to read:

139.76(1p)139.76 An(1e) exciseThe tax isunder imposedsub. upon the sale, offering or exposing for sale, possession with intent to sell, or removal for consumption or sale or other disposition for any purpose of cigars and pipe tobacco by any person engaged as a distributor or remote retail seller of them at the rate of 71 percent of the actual cost to the distributor or remote retail seller.

The(1) tax imposed underon thiscigars subsectionand onpipe cigarstobacco sold by remote retail sellers shall apply to the actual cost of the cigars and pipe tobacco to the remote retail seller, or if the actual cost is not exceedavailable, anthe amountaverage equalof the actual cost to 50the centsremote forretail eachseller cigar.of cigars or pipe tobacco identified by the same stock keeping unit number as the cigars or pipe tobacco over the 12 months before January 1 of the year in which the sale occurs.

TheSECTION tax10. attaches at the time the cigars or pipe tobacco are received by the distributor in this state, except that for cigars and pipe tobacco sold by a remote retail seller, the tax attaches at the time the remote retail seller makes a remote retail sale of cigars or pipe tobacco to a consumer.

The139.775 tax shall be passed on to the ultimate consumer of the cigarsstatutes andis pipecreated tobacco.to read:

All139.775 cigarsRecords, reports, and pipereturns tobaccoof receivedremote inretail thissellers. state for sale or distribution within this state, except tobacco products actually sold as provided in sub.

(2),(1) A remote retail seller shall bekeep subjectall torecords suchof tax.remote retail sales.

LRBs0279/1(2) -A 2024remote Legislatureretail -seller 5shall -file KP:cdca Sreport ECTIONwith 10the SECTIONdepartment 10.no later than the 15th day of each month identifying the total quantity, date, and dollar value of all remote retail sale shipments made during the preceding month.

139.78(3) (1)A ofremote theretail statutesseller isthat amendeddoes tonot read:hold a distributor permit under s.

139.78139.79 (1)shall Afile Excepta asreturn provideddescribed inunder sub.s.

(1p),139.77 a(1) taxon isa imposedform uponprescribed the use or storage by consumersthe ofdepartment tobaccoand productsshall inreport thison statethe atreturn the rate,quantity forand tobaccoactual products,cost notof includingeach moistcigar snuf,or vapor products, cigars, and pipe tobacco,tobacco ofproduct 71shipped percentor oftransported theto costconsumers ofduring the tobaccopreceding productsLRB-2323/3 and,- for2024 moistLegislature snuff,- at5 the- rateKP:amn ofS 100ECTION percent10 ofASSEMBLY theBILL manufacturer's910 establishedmonth listand priceany toother distributorsinformation withoutrequired diminution by volumethe ordepartment. other discounts on domestic products.

The taxdepartment imposedmay underrequire thisremote subsectionretail onsellers cigarsto shallelectronically notfile exceedreturns anrequired amountunder equalthis tosubsection. 50 cents for each cigar.

The(4) taxA doesremote notretail applyseller ifshall at the taxtime imposedof byfiling s.a return required under sub.

139.76(3) (1)pay onto the tobaccodepartment products has been paid or if the tobaccotaxes productsincurred arein exempt from the tobaccopreceding productsmonth. tax under s.

139.76 (2).

139.78 (1p) of the statutes is created to read:

139.78 (1p) A tax is imposed upon the use or storage by consumers of cigars and pipe tobacco in this state at the rate and basis under s.

139.76 (1p).

The tax does not apply if the tax imposed by s.

139.76 (1p) on the cigars or pipe tobacco has been paid or if the cigars or pipe tobacco are exempt from the tax under s.

139.76 (2).

SECTION 12.

SECTION 13.12.

LRBs0279/1 - 2024 Legislature - 6 - KP:cdc S ECTION 13 139.815 Remote retail sales.

(2) TheIf the person's annual gross sales into this state exceed $100,000 in the previous calendar year, the person registers with the department and collects the taxes administered or imposed under s.

77.52 or 77.53.77.53 on sales sourced to this state under s.

77.522 for the entire current calendar year.

(4) The person uses an independent, 3rd-party age verification service that compares information available from a commercially available database or aggregate of databases that are regularly used by government agencies and business for age and identity verification to determine whether a prospective consumerbuyer hasis attained21 theyears minimum- age2024 forLegislature purchasing- a6 tobacco- productLRB-2323/3 underKP:amn theASSEMBLY federalBILL Food,910 Drug,S andECTION Cosmetic12 Actof age based on the personal information provided by the prospective consumerbuyer during the ordering process.

S(5) ECTIONIf 14.the person calculates the amount of tax incurred under s.

139.82139.76 (1)by ofusing the statutesaverage isof amendedthe actual cost to read:the remote retail seller of cigars or pipe tobacco identified by the same stock keeping unit numbers over the 12 months before January 1 of the year of sale, the person does all of the following:

139.82(a) (1)Annually, Everyno manufacturerlater locatedthan outDecember of31, provides to the statedepartment shalla keeplist recordscontaining ofthe allaverage salesactual costs and stock keeping unit number of tobaccoeach productscigar andor vaportobacco productsproduct shippedthat intothe thisperson state.offers for sale.

Every(b) manufacturerIf locatedthe inperson thisoffers statea shallcigar keepor recordstobacco ofproduct production,that salesis andnot withdrawalsrepresented ofon tobaccothe productslist anddescribed vaporin products.par.

Every(a), distributorby andthe remoteend retailof sellerthe shallquarter keepin recordswhich ofthe purchasesperson andfirst salesoffers the product, the person provides the department with an updated list that includes the stock keeping unit number of tobaccothe productsproduct and vaporthe products.actual cost first paid for the product.

EveryS subjobberECTION shall13.Effective keepdate. records of all purchases and disposition of tobacco products and vapor products.

Every(1) warehouseThis operatoract shalltakes keepeffect recordson ofJanuary receipts1, and2025. withdrawals of tobacco products and vapor products.

All records shall be accurate and complete and be kept in a manner prescribed by the department.

These records shall be preserved on the premises described in the permit in such a LRBs0279/1 - 2024 Legislature - 7 - KP:cdc S ECTION 14 manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized personnel of the department.

SECTION 15.

139.82 (2) (a) of the statutes is amended to read:

139.82(2) (a) Except as provided in par.

(b), every permittee shall render a true and correct invoice of every sale of tobacco products and vapor products at wholesale, or, if the permittee is a remote retail seller, at retail, and shall on or before the 15th day of each calendar month file a verified report of all tobacco products and vapor products purchased, sold, received, warehoused or withdrawn during the preceding calendar month.

SECTION 16.

139.82 (6) of the statutes, as affected by 2023 Wisconsin Act 73, is amended to read:

139.82 (6) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3.

and 3m., relating to confidentiality of income and franchise tax returns, apply to any information obtained from any person on a cigarette tax return, report, schedule, exhibit, or other document or from an audit report pertaining to the return, report, schedule, exhibit, or document, except that the department shall publish on its Internet site, at least quarterly, a current list of permits issued to remote retail sellers, distributors, and jobbers under s.

139.34 and include on the list the name and address of the permit holder and the date on which the department issued the permit.

SECTION 17.

139.82 (8) of the statutes is amended to read:

139.82 (8) Each distributor and remote retail seller shall collect and remit the excise tax imposed by s.

139.76 on tobacco products and vapor products not exempt from tax under s.

139.76 (2), with the reports required to be filed under this section.

SECTION 18.0Effective date.

LRBs0279/1 - 2024 Legislature - 8 - KP:cdc S ECTION 18 (1) This act takes effect on January 1, 2025.