D.C. Mun. Regs. tit. 9, r. 9-1014

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 9-1014 - SALES TO PERSONS NOT LICENSED UNDER THE ACT

1014.1

A wholesale licensee is authorized to sell to the following persons not licensed under the Act cigarettes which do not bear evidence of a payment of tax, in accordance with the provisions of this section:

(a) An agency or instrumentality of the United States government or the government of the District of Columbia, or an exchange or commissary of the Armed Forces of the United States; and

(b) A purchaser which, at the time of the sale, is licensed by another jurisdiction to engage in the business of selling cigarettes in that jurisdiction.

1014.2

No sale to a governmental entity under § 1014.1(a) shall be made except upon presentation by the purchaser to the wholesale licensee of a properly executed purchase order for the cigarettes purchased.

1014.3

The wholesale licensee shall maintain and preserve records necessary to account for each sale under this section to the satisfaction of the Deputy Chief Financial Officer.

1014.4

If the records required under § 1014.3 are not kept for any sale under this section, the sale shall be deemed to be a taxable sale, and the licensee shall be liable to the District for any taxes due.

1014.5

The intent of a purchaser licensed to resell cigarettes in another jurisdiction under § 1014.1(b) shall be evidenced by the following:

(a) The presence of tax stamps affixed at the time of delivery to each original package of cigarettes delivered denoting payment of the tax imposed upon cigarettes by that jurisdiction; or

(b) Delivery to the wholesale licensee by the purchaser of a copy (for retention by the licensee) of a permit issued by the Deputy Chief Financial Officer on the form prescribed by the Deputy Chief Financial Officer authorizing the licensee to sell and deliver to the purchaser cigarettes not bearing tax stamps of the jurisdiction in which the cigarettes are to be resold.

1014.6

In any case where a permit presented to a wholesale licensee authorizing the sale of untaxed cigarettes shows that transportation of the cigarettes is to be made in a vehicle owned or operated by the purchaser, the wholesale licensee shall, prior to delivering untaxed cigarettes to the purchaser, certify on the retained copy of the permit that he or she has verified the description of the vehicle, including its registration number, as set forth in the permit.

1014.7

If transportation is to be made by a common carrier, or by the licensee, the wholesaler shall certify on the permit that he or she delivered the cigarettes to the common carrier identified on the permit, or that the wholesaler transported the cigarettes.

1014.8

Within seventy-two (72) hours after sale of the cigarettes to the purchaser, the wholesale licensee shall furnish the Deputy Chief Financial Officer with a copy of the invoice or the bill of sale for the cigarettes sold.

1014.9

Any sale of cigarettes by a wholesaler to a purchaser not licensed under the Act which does not conform to the requirements of § 1015 and this section shall be deemed to be a sale to a consumer and shall constitute a violation of this chapter; and the wholesale licensee, in addition to any penalties to which the licensee may be subject, shall be liable to the District for the tax on the cigarettes sold.

1014.10

Cigarette tax stamps issued by a jurisdiction other than the District shall not be affixed by a wholesale licensee to packages of cigarettes delivered by him or her to a person not licensed under the Act, unless those stamps were purchased by the licensee.

D.C. Mun. Regs. tit. 9, r. 9-1014

Final Rulemaking published at 29 DCR 2804, 2809 (July 2, 1982)