House Study Bill 90 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF REVENUE BILL) A BILL FOR An Act relating to cigarette and tobacco product regulations 1 including vapor products by requiring the electronic 2 filing of returns and other related matters, and providing 3 penalties. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1387XD (6) 91 jm/jh
S.F. _____ H.F. _____ Section 1. Section 453A.1, subsection 27, Code 2025, is 1 amended to read as follows: 2 27. State permit shall mean and include all permits issued 3 by the department to distributors, wholesalers, and retailers 4 under this chapter except the permits issued to retailers 5 approved by cities and counties pursuant to sections 453A.13 6 and 453A.47A . 7 Sec. 2. Section 453A.6, subsection 8, paragraph a, Code 8 2025, is amended to read as follows: 9 a. Pay directly to the department, in lieu of the tax 10 under subsection 1 , a tax equal to three and six hundredths 11 cents on each cigarette dispensed from such machine. Payments 12 made under this paragraph shall be remitted to the department 13 electronically. 14 Sec. 3. Section 453A.8, subsection 2, Code 2025, is amended 15 to read as follows: 16 2. Orders for cigarette tax stamps, including the payment 17 for such stamps, shall be sent direct made to the department 18 electronically on a form to be prescribed by the director, 19 except as provided in subsection 6 . 20 Sec. 4. Section 453A.13, subsection 2, paragraph a, Code 21 2025, is amended to read as follows: 22 a. The department shall issue state permits to distributors, 23 wholesalers, and cigarette vendors, and retailers that 24 make delivery sales of alternative nicotine products and 25 vapor products, subject to the conditions provided in this 26 subchapter . If an out-of-state retailer makes delivery 27 sales of alternative nicotine products or vapor products, an 28 application shall be filed with the department electronically 29 and a permit shall be issued for the out-of-state retailers 30 principal place of business. Cities may issue approve retail 31 permits to retailers permit applications for applicants with 32 a place of business located within their respective limits. 33 County boards of supervisors may issue approve retail permits 34 to retailers permit applications for applicants with a place of 35 -1- LSB 1387XD (6) 91 jm/jh 1/ 16
S.F. _____ H.F. _____ business in their respective counties, outside of the corporate 1 limits of cities. Upon approval of a retail permit application 2 by a city or county, the department shall issue the permit to 3 the applicant on behalf of the city or county, in the manner 4 determined by the department. A city or county shall use the 5 electronic portal of the department to process retail permit 6 applications. A city or county that is unable to use the 7 electronic portal of the department may request permission from 8 the director to process retail applications by another method. 9 Sec. 5. Section 453A.13, subsection 2, paragraph c, Code 10 2025, is amended to read as follows: 11 c. A city or county shall submit a duplicate of any 12 application for a retail permit to the department within thirty 13 days of the issuance. The department shall submit the current 14 list of all retail permits issued to the department of health 15 and human services by the last day of each quarter of a state 16 fiscal year. 17 Sec. 6. Section 453A.13, subsection 3, paragraph a, Code 18 2025, is amended to read as follows: 19 a. All permits provided for in this subchapter shall expire 20 on June 30 of each year. A permit shall not be granted or 21 issued until the applicant has paid the fees to the department 22 required in this subchapter for the next period ending on June 23 30 next, to the department or the city or county granting the 24 permit, the fees provided for in this subchapter . The annual 25 state permit fee for a distributor, cigarette vendor, and 26 wholesaler is one hundred dollars when the permit is granted 27 during the months of July, August, or September. However, 28 whenever a state permit holder operates more than one place of 29 business, a duplicate state permit shall be issued for each 30 additional place of business on payment of five dollars for 31 each duplicate state permit, but refunds as provided in this 32 subchapter do not apply to any duplicate permit issued. 33 Sec. 7. Section 453A.13, subsection 5, unnumbered paragraph 34 1, Code 2025, is amended to read as follows: 35 -2- LSB 1387XD (6) 91 jm/jh 2/ 16
S.F. _____ H.F. _____ Permits shall be issued only upon applications accompanied 1 by the fee indicated above, and by an adequate bond as provided 2 in section 453A.14 , and upon forms furnished by the department 3 upon written request . The failure to furnish such forms shall 4 be no excuse for the failure to file the forms unless absolute 5 refusal is shown. Applications, any supporting documentation, 6 and the associated fees required by this section shall be 7 submitted to the department electronically. The forms shall 8 set forth all of the following: 9 Sec. 8. Section 453A.13, subsection 9, unnumbered paragraph 10 1, Code 2025, is amended to read as follows: 11 Each permit issued shall describe clearly the place of 12 business for which it is issued, shall be nonassignable, 13 consecutively numbered, designating the kind of permit, and 14 shall authorize the sale of cigarettes, alternative nicotine 15 products, or vapor products in this state subject to the 16 limitations and restrictions herein contained. The retail 17 permits shall be upon forms furnished by the department or on 18 forms made available or approved by the department . 19 Sec. 9. Section 453A.14, subsection 1, unnumbered paragraph 20 1, Code 2025, is amended to read as follows: 21 No A state or manufacturers permit shall not be issued until 22 the applicant files a bond, with good and sufficient surety, 23 to be approved by the director, which bond shall be in favor of 24 the state and conditioned upon the payment of taxes, damages, 25 fines, penalties, and costs adjudged against the permit holder 26 for violation of any of the provisions of this subchapter . The 27 bonds shall be on forms prescribed by the director and shall be 28 filed electronically. A bond filed under this section shall be 29 in one of the following amounts: 30 Sec. 10. Section 453A.14, subsection 2, Code 2025, is 31 amended to read as follows: 32 2. A person shall not engage in interstate business unless 33 the person files a bond, with good and sufficient surety in an 34 amount of not less than one thousand dollars. A bond required 35 -3- LSB 1387XD (6) 91 jm/jh 3/ 16
S.F. _____ H.F. _____ by this subsection shall be on forms prescribed by the director 1 and shall be filed electronically. The amount of the bond 2 required of the person shall be fixed by the director, subject 3 to the minimum limitation provided in this section . The bond 4 is subject to approval by the director and shall be payable to 5 the state in Des Moines, Polk county, and conditioned upon the 6 payment of taxes, damages, fines, penalties, and costs adjudged 7 against the person for violation of any of the requirements of 8 this subchapter affecting the person, on a form prescribed by 9 the director. 10 Sec. 11. Section 453A.15, subsection 7, Code 2025, is 11 amended to read as follows: 12 7. The director may require by rule that Any reports 13 required to be made under this subchapter shall be filed by 14 electronic transmission electronically . 15 Sec. 12. Section 453A.16, Code 2025, is amended to read as 16 follows: 17 453A.16 Manufacturers permit. 18 The department may, upon application of any manufacturer, 19 issue without charge to the manufacturer a manufacturers 20 permit. The application shall contain information as 21 the director shall prescribe and the application shall be 22 submitted to the department electronically . The holder of a 23 manufacturers permit is authorized to purchase stamps from 24 the department, and must affix stamps to individual packages 25 of cigarettes outside of this state, prior to their shipment 26 into the state unless the cigarettes are shipped to an Iowa 27 permitted distributor or an Iowa permitted distributors agent. 28 Sec. 13. Section 453A.17, subsection 1, Code 2025, is 29 amended to read as follows: 30 1. Every distributing agent in the state, now engaged, 31 or who desires to become engaged, in the business of storing 32 unstamped cigarettes which are received in interstate commerce 33 for distribution or delivery only upon order received from 34 without the state or to be sold outside the state, shall 35 -4- LSB 1387XD (6) 91 jm/jh 4/ 16
S.F. _____ H.F. _____ file with the department electronically , an application for 1 a distributing agents permit, on a form prescribed by the 2 director , to be furnished upon written request . The failure 3 to furnish shall be no excuse for the failure to file the same 4 unless an absolute refusal is shown. Said form shall set 5 forth the name under which such distributing agent transacts 6 or intends to transact such business as a distributing agent, 7 the principal office and place of business in Iowa to which 8 the permit is to apply, and if other than an individual, the 9 principal officers or members thereof and their addresses. The 10 director may require any other information in said application. 11 No distributing agent shall engage in such business until 12 such application has been filed and fee in the sum of one 13 hundred dollars paid for the permit and until the permit has 14 been obtained. Such permit shall expire on June 30 following 15 the date of issuance. All of the provisions of the last 16 two paragraphs of section 453A.14 , relative to bonds, are 17 incorporated herein and by this reference made applicable to 18 distributing agents. Upon failure to furnish adequate bond 19 as required, the permit shall be revoked without hearing. An 20 application shall be filed and a permit obtained for each place 21 of business owned or operated by a distributing agent. 22 Sec. 14. Section 453A.18, Code 2025, is amended to read as 23 follows: 24 453A.18 Forms for records and reports. 25 The department shall furnish or make available in electronic 26 form, without charge, to holders of the various permits, forms 27 in sufficient quantities to enable permit holders to make the 28 reports required to be made under this subchapter . The permit 29 holders shall furnish at their own expense the books, records, 30 and invoices, required to be used and kept, but the books, 31 records, and invoices shall be in exact conformity to the forms 32 prescribed for that purpose by the director, and shall be kept 33 and used in the manner prescribed by the director. However, 34 the director may, by express order in certain cases, authorize 35 -5- LSB 1387XD (6) 91 jm/jh 5/ 16
S.F. _____ H.F. _____ permit holders to keep their records in a manner and upon forms 1 other than those prescribed. The authorization may be revoked 2 at any time. A report, book, record, invoice, and any other 3 document required to be submitted to the department under this 4 subchapter shall be submitted electronically. 5 Sec. 15. Section 453A.23, subsections 1 and 2, Code 2025, 6 are amended to read as follows: 7 1. Subject to this subchapter , a retailers permit may be 8 issued by the department to any dining car company, sleeping 9 car company, railroad or railway company. The permit shall 10 authorize the holder to keep for sale, and sell, cigarettes 11 at retail on any dining car, sleeping car, or passenger car 12 operated by the applicant in, through, or across the state of 13 Iowa, subject to all of the restrictions imposed upon retailers 14 under this subchapter . The application for the permit shall 15 be in the form and contain the information required by the 16 director and each application submitted under this section 17 shall be submitted to the department electronically . Each 18 permit is good throughout the state. Only one permit is 19 required for all cars operated in this state by the applicant, 20 but a duplicate of the permit shall be posted in each car 21 in which cigarettes are sold and no further permit shall be 22 required or tax levied for the privilege of selling cigarettes 23 in the cars. No cigarettes Cigarettes shall not be sold in 24 the cars without having affixed thereto stamps evidencing the 25 payment of the tax as provided in this subchapter . 26 2. As a condition precedent to the issuing of a retailers 27 permit for railway car, the applicant shall file with the 28 department a bond in favor of the state for the benefit of 29 all parties interested in the amount of five hundred dollars 30 conditioned upon the payment of all taxes, fines and penalties 31 and costs in this subchapter . A bond filed under this 32 subsection shall be on a form prescribed by the director and 33 shall be filed electronically. 34 Sec. 16. Section 453A.24, subsection 2, Code 2025, is 35 -6- LSB 1387XD (6) 91 jm/jh 6/ 16
S.F. _____ H.F. _____ amended to read as follows: 1 2. The director may require by rule that common carriers 2 or the appropriate persons provide monthly reports to the 3 department detailing all information the department deems 4 necessary on shipments into and out of Iowa of cigarettes 5 and tobacco products as set forth in this subchapter I and 6 subchapter II of this chapter . The director may require by 7 rule that the reports A report required to be submitted by the 8 director pursuant to this section shall be filed by electronic 9 transmission electronically . 10 Sec. 17. Section 453A.28, subsection 1, paragraph a, Code 11 2025, is amended to read as follows: 12 a. (1) If after any audit, examination of records, or 13 other investigation the department finds that any person has 14 sold cigarettes without stamps affixed or that any person 15 responsible for paying the tax has not done so as required by 16 this subchapter , the department shall fix and determine the 17 amount of tax due, and shall assess the tax against the person, 18 together with a penalty as provided in section 421.27 . 19 (2) The taxpayer shall pay interest on the tax or additional 20 tax at the rate determined under section 421.7 counting each 21 fraction of a month as an entire month, computed from the date 22 the tax was due. If any person fails to furnish evidence 23 satisfactory to the director showing purchases of sufficient 24 stamps to stamp unstamped cigarettes purchased by the person, 25 the presumption shall be that the cigarettes were sold without 26 the proper stamps affixed. Within three years after the report 27 is filed or within three years after the report became due, 28 whichever is later, the department shall examine the report 29 and determine the correct amount of tax. The period for 30 examination and determination of the correct amount of tax is 31 unlimited in the case of a false or fraudulent report made 32 with the intent to evade tax, or in the case of a failure to 33 file a report, or if a person purchases or is in possession of 34 unstamped cigarettes. 35 -7- LSB 1387XD (6) 91 jm/jh 7/ 16
S.F. _____ H.F. _____ (3) For purposes of imposing penalties under this section 1 and section 421.27, a person who fails to timely file or submit 2 a required return, report, or other documentation upon which no 3 tax is shown due is subject to a penalty in the amount of fifty 4 dollars for each occurrence. 5 Sec. 18. Section 453A.28, subsection 1, Code 2025, is 6 amended by adding the following new paragraph: 7 NEW PARAGRAPH . c. For purposes of this section and section 8 421.27, any application, bond, fee, report, return, remittance, 9 or other documentation required to be submitted electronically 10 under this subchapter that is filed in a manner other than in 11 an electronic format specified by the department shall not be 12 considered a valid submission unless the director has permitted 13 submission of such application, bond, fee, report, return, 14 remittance, or other documentation through an alternative 15 method pursuant to section 453A.57. 16 Sec. 19. Section 453A.35, subsection 1, paragraph a, Code 17 2025, is amended to read as follows: 18 a. With the exception of revenues credited to the health 19 care trust fund pursuant to paragraph b , the proceeds derived 20 from the sale of stamps and the payment of fees and penalties 21 provided for under this chapter , and the permit fees received 22 from all state permits issued by the department, shall be 23 credited to the general fund of the state. 24 Sec. 20. Section 453A.35, subsection 2, Code 2025, is 25 amended to read as follows: 26 2. All permit fees provided for in this chapter and 27 collected by the department on behalf of cities in the issuance 28 of permits granted by the cities shall be paid remitted by 29 the department to the treasurer of the city where the permit 30 is effective, or to another city officer as designated by the 31 council, and shall be credited to the general fund of the 32 city. Permit fees so collected by the department on behalf of 33 counties shall be paid remitted to the county treasurer of the 34 county where the permit is effective . 35 -8- LSB 1387XD (6) 91 jm/jh 8/ 16
S.F. _____ H.F. _____ Sec. 21. Section 453A.39, subsection 2, paragraph a, Code 1 2025, is amended to read as follows: 2 a. All cigarette samples shall be shipped only to a 3 distributor that has a permit to stamp cigarettes or little 4 cigars with Iowa tax. All cigarette samples must have a 5 cigarette stamp. The manufacturer shipping samples under this 6 section shall send an affidavit to the director stating the 7 shipment information, including the date shipped, quantity, and 8 to whom the samples were shipped. The distributor receiving 9 the shipment shall send an affidavit to the director stating 10 the shipment information, including the date shipped, quantity, 11 and from whom the samples were shipped. These affidavits shall 12 be duly notarized and submitted to the director at the time of 13 shipment and receipt of the samples. The distributor shall 14 pay the tax on samples by separate remittance along with the 15 affidavit. The affidavit and remittance required under this 16 paragraph shall be submitted to the department electronically. 17 Sec. 22. Section 453A.40, subsection 2, Code 2025, is 18 amended to read as follows: 19 2. Persons subject to the inventory tax imposed under this 20 section shall take an inventory as of the close of the business 21 day next preceding the effective date of the increased tax rate 22 of those items subject to the inventory tax for the purpose of 23 determining the tax due. These persons shall report the tax 24 on forms provided by the department of revenue and remit the 25 tax due within thirty days of the prescribed inventory date. 26 The report and remittance required under this subsection shall 27 be submitted to the department electronically. The department 28 of revenue shall adopt rules as are necessary to carry out this 29 section . 30 Sec. 23. Section 453A.45, subsection 5, paragraphs b, c, and 31 d, Code 2025, are amended to read as follows: 32 b. The report shall be made on forms provided by the 33 director. The director may require by rule that the A report 34 required under this subsection shall be filed by electronic 35 -9- LSB 1387XD (6) 91 jm/jh 9/ 16
S.F. _____ H.F. _____ transmission electronically . A report required to be submitted 1 electronically under this subsection that is filed in a manner 2 other than in an electronic format specified by the department 3 shall not be considered a valid submission unless the director 4 has permitted the submission of such a report through an 5 alternative method pursuant to section 453A.57. 6 c. Common carriers transporting tobacco products into 7 this state shall file with the director reports of all such 8 shipments other than those which are delivered to public 9 warehouses of first destination in this state which are 10 licensed under the provisions of chapter 554 . Such reports 11 shall be filed electronically with the department on or before 12 the tenth day of each month and shall show with respect to 13 deliveries made in the preceding month all of the following: 14 (1) The date. 15 (2) The point of origin. 16 (3) The point of delivery. 17 (4) The name of the consignee. 18 (5) A description and the quantity of tobacco products 19 delivered. 20 (6) Such other information as the director may require. 21 d. Any person who fails or refuses to transmit to the 22 director the required reports or whoever refuses to permit the 23 examination of the records by the director shall be guilty 24 of a serious misdemeanor. In addition, any person who fails 25 to timely submit a report required under this section is 26 subject to a penalty in the amount of fifty dollars for each 27 occurrence. 28 Sec. 24. Section 453A.46, subsection 1, paragraph a, 29 subparagraph (1), Code 2025, is amended to read as follows: 30 (1) On or before the twentieth day of each calendar month 31 every distributor with a place of business in this state shall 32 file a return with the director showing for the preceding 33 calendar month the quantity and wholesale sales price of each 34 tobacco product brought, or caused to be brought, into this 35 -10- LSB 1387XD (6) 91 jm/jh 10/ 16
S.F. _____ H.F. _____ state for sale; made, manufactured, or fabricated in this state 1 for sale in this state; and any other information the director 2 may require. Every licensed distributor outside this state 3 shall in like manner file a return with the director showing 4 for the preceding calendar month the quantity and wholesale 5 sales price of each tobacco product shipped or transported to 6 retailers in this state to be sold by those retailers and any 7 other information the director may require. Returns shall 8 be made upon forms furnished or made available in electronic 9 form and prescribed by the director and shall contain other 10 information as the director may require. Each return shall be 11 accompanied by a remittance for the full tax liability shown 12 on the return, less a discount as fixed by the director not to 13 exceed five percent of the tax. Within three years after the 14 return is filed or within three years after the return became 15 due, whichever is later, the department shall examine it, 16 determine the correct amount of tax, and assess the tax against 17 the taxpayer for any deficiency. The period for examination 18 and determination of the correct amount of tax is unlimited in 19 the case of a false or fraudulent return made with the intent 20 to evade tax, or in the case of a failure to file a return. 21 Sec. 25. Section 453A.46, subsection 3, Code 2025, is 22 amended to read as follows: 23 3. In addition to the tax or additional tax, the taxpayer 24 shall also pay a penalty as provided in section 421.27 and be 25 subject to the civil penalties set forth in sections 421.27 ; 26 453A.31, subsection 1 , paragraph b ; and 453A.50, subsection 27 3 , as applicable. For purposes of imposing penalties under 28 this section and section 421.27, a person who fails to 29 timely file or submit a required return, report, or other 30 documentation upon which no tax is shown due is subject to a 31 penalty in the amount of fifty dollars for each occurrence. 32 Sec. 26. Section 453A.46, subsection 7, Code 2025, is 33 amended by striking the subsection and inserting in lieu 34 thereof the following: 35 -11- LSB 1387XD (6) 91 jm/jh 11/ 16
S.F. _____ H.F. _____ 7. A report, return, remittance, or other documentation 1 required to be submitted under this subchapter shall be filed 2 electronically. Any report, return, remittance, or other 3 documentation required to be submitted electronically that 4 is submitted in a manner other than in an electronic format 5 specified by the department shall not be considered a valid 6 submission unless the director has permitted submission of such 7 application, bond, fee, report, return, remittance, or other 8 documentation through an alternative method pursuant to section 9 453A.57. 10 Sec. 27. Section 453A.47A, subsection 6, Code 2025, is 11 amended to read as follows: 12 6. Issuance. Cities may issue approve retail permits to 13 retailers permit applications of applicants located within 14 their respective limits. County boards of supervisors may 15 issue approve retail permits to retailers permit applications 16 of applicants located in their respective counties, outside 17 of the corporate limits of cities. The city or county shall 18 submit a duplicate of any application for a retail permit to 19 the department within thirty days of issuance of a permit. 20 Upon approval of a retail permit application by a city or 21 county, the department shall issue the permit to the applicant 22 on behalf of the city or county, in the manner determined by 23 the department. A city or county shall use the electronic 24 portal of the department to process retail permit applications. 25 A city or county that is unable to use the electronic portal 26 of the department may request permission from the director to 27 process retail applications by another method. The department 28 shall submit the current list of all retail permits issued to 29 the department of health and human services by the last day of 30 each quarter of a state fiscal year. 31 Sec. 28. Section 453A.47A, subsection 7, paragraph a, 32 unnumbered paragraph 1, Code 2025, is amended to read as 33 follows: 34 All permits provided for in this subchapter shall expire on 35 -12- LSB 1387XD (6) 91 jm/jh 12/ 16
S.F. _____ H.F. _____ June 30 of each year. A permit shall not be granted or issued 1 until the applicant has paid the fees provided for to the 2 department required in this section for the next period ending 3 on June 30 next, to the city or county granting the permit . The 4 fee for retail permits is as follows when the permit is granted 5 during the month of July, August, or September: 6 Sec. 29. Section 453A.47A, subsection 9, unnumbered 7 paragraph 1, Code 2025, is amended to read as follows: 8 Retail permits shall be issued only upon applications, 9 accompanied by the fee indicated above, made upon forms 10 furnished by the department upon written request . The failure 11 to furnish such forms shall be no excuse for the failure to 12 file the form unless absolute refusal is shown. Applications, 13 any supporting documentation, and the associated fees 14 required by this section shall be submitted to the department 15 electronically. The forms shall specify: 16 Sec. 30. Section 453A.47A, subsection 10, paragraph b, Code 17 2025, is amended to read as follows: 18 b. Every retailer shall, when requested by the department, 19 make additional reports as the department deems necessary and 20 proper and shall at the request of the department furnish full 21 and complete information pertaining to any transaction of the 22 retailer involving the purchase or sale or use of tobacco, 23 tobacco products, alternative nicotine products, or vapor 24 products. A report required to be submitted to the department 25 pursuant to this subsection shall be submitted electronically. 26 Sec. 31. Section 453A.52, Code 2025, is amended by adding 27 the following new subsection: 28 NEW SUBSECTION . 9. Any certification form, notice, and 29 supporting documentation and any payment required to be 30 submitted to the department pursuant to this section shall 31 be submitted to the department electronically, unless the 32 director has permitted submission of such information through 33 an alternative method pursuant to section 453A.57. 34 Sec. 32. Section 453A.52B, Code 2025, is amended by adding 35 -13- LSB 1387XD (6) 91 jm/jh 13/ 16
S.F. _____ H.F. _____ the following new subsection: 1 NEW SUBSECTION . 6. Payment for any penalty imposed 2 pursuant to this section shall be remitted to the department 3 electronically, unless the director has permitted submission 4 of such information through an alternative method pursuant to 5 section 453A.57. 6 Sec. 33. Section 453A.52D, Code 2025, is amended by adding 7 the following new subsection: 8 NEW SUBSECTION . 4. Notice to the department and any 9 supporting documentation required to be submitted to the 10 department pursuant to this section shall be submitted to the 11 department electronically, unless the director has permitted 12 submission of such information through an alternative method 13 pursuant to section 453A.57. 14 Sec. 34. NEW SECTION . 453A.57 Submitting documents 15 alternative method. 16 A person subject to this chapter who is required to submit an 17 application, bond, fee, report, return, remittance, or other 18 documentation electronically and who is unable to do so, may 19 request permission from the director to make a submission using 20 an alternative method. 21 Sec. 35. Section 453D.5, subsection 1, Code 2025, is amended 22 to read as follows: 23 1. No later than twenty calendar days after the end of 24 each calendar quarter, and more frequently if so directed by 25 the director, each stamping agent and distributor shall submit 26 information as the director requires to facilitate compliance 27 with this chapter , including but not limited to a list by brand 28 family of the total number of cigarettes, or, in the case of 29 roll-your-own tobacco, the equivalent stick count, for which 30 the stamping agent or distributor affixed stamps during the 31 previous calendar quarter or otherwise paid the tax due for 32 the cigarettes. The stamping agent and distributor shall 33 maintain, and make available to the director, all invoices and 34 documentation of sales of all nonparticipating manufacturer 35 -14- LSB 1387XD (6) 91 jm/jh 14/ 16
S.F. _____ H.F. _____ cigarettes and any other information relied upon in reporting 1 to the director for a period of five years. Any information 2 submitted pursuant to this subsection shall be submitted to 3 the director electronically, unless the director has permitted 4 submission of such information through an alternative method 5 pursuant to section 453A.57. Any information submitted 6 pursuant to this subsection that is submitted in a manner other 7 than in a format specified by the department shall not be 8 considered a valid submission. Violations of this subsection 9 are subject to civil penalties as established in section 10 453A.31, subsection 1 , paragraph b . 11 Sec. 36. CODE EDITOR DIRECTIVES. 12 1. The Code editor is directed to place new section 453A.57, 13 as enacted by this Act, in subchapter IV titled Uniformed 14 Application of Chapter. 15 2. The Code editor may modify subchapter titles if necessary 16 and is directed to correct internal references in the Code as 17 necessary due to enactment of this section. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanations substance by the members of the general assembly. 21 This bill relates to cigarette and tobacco product 22 regulations including vapor products by requiring the 23 electronic filing of returns and other related matters. 24 The bill specifies that cities and counties may approve 25 tobacco-related retail permits but the department shall issue 26 the permit to the applicant on behalf of the city or county. 27 The bill requires the city or county to use the electronic 28 portal of the department to process retail permit applications. 29 If a city or county is unable to use the electronic portal 30 of the department, the city or county may request permission 31 from the director of revenue to process retail applications by 32 another method. 33 The bill provides that all tobacco-related permit fees shall 34 be collected by the department, and the department shall credit 35 -15- LSB 1387XD (6) 91 jm/jh 15/ 16
S.F. _____ H.F. _____ the fees to the city or county where the permit is in effect. 1 The bill specifies that a person who fails to timely file or 2 submit a required return, report, or other documentation upon 3 which no tax is shown due is subject to a penalty in the amount 4 of $50 for each occurrence. 5 The bill requires cigarette and tobacco tax returns, 6 reports, invoices, bonds, and payments to be filed with or 7 submitted to the department electronically beginning on or 8 after July 1, 2025. 9 The bill provides any report, return, remittance, or other 10 documentation required to be submitted electronically that is 11 submitted in a manner other than in an electronic format shall 12 be considered not a valid submission. However, the bill does 13 allow a person required to make a submission electronically to 14 request permission from the director of revenue to make the 15 submission in another manner. 16 The bill directs the Code editor to place new Code section 17 453A.57 (submitting documents alternative method) in 18 subchapter IV. 19 -16- LSB 1387XD (6) 91 jm/jh 16/ 16