453A.1 DEFINITIONS.
The following words, terms, and phrases, when used in this
chapter, shall, for the purpose of this chapter, have the meanings
respectively ascribed to them.
1. "Attorney general" shall mean the attorney general of the
state or the attorney general's duly authorized assistants and
employees.
2. "Carton" means a box or container of any kind in which ten
or more packages or packs of cigarettes or tobacco products are
offered for sale, sold, or otherwise distributed to consumers.
3. "Cigarette" means any roll for smoking made wholly or in
part of tobacco, or any substitute for tobacco, irrespective of size
or shape and irrespective of tobacco or any substitute for tobacco
being flavored, adulterated, or mixed with any other ingredient,
where such roll has a wrapper or cover made of paper or any other
material. Provided the definition herein shall not be construed to
include cigars.
4. "Cigarette vending machine" means any self-service device
offered for public use which, upon insertion of a coin, coins, paper
currency, or by other means, dispenses cigarettes or tobacco products
without the necessity of replenishing the device between each vending
operation.
5. "Cigarette vendor" means any person who by contract,
agreement, or ownership takes responsibility for furnishing,
installing, servicing, operating, or maintaining one or more
cigarette vending machines for the purpose of selling cigarettes at
retail.
6. "Counterfeit stamp" shall mean any stamp, label, print,
indicium, or character which evidences, or purports to evidence the
payment of any tax levied by this chapter, and which stamp, label,
print, indicium, or character has not been printed, manufactured or
made by authority of the director as hereinafter provided, and
issued, sold or circulated by the department.
7. "Department" means the department of revenue.
8. "Director" means the director of revenue or the director's
duly authorized assistants and employees.
9. "Distributing agent" shall mean and include every person
in this state who acts as an agent of any manufacturer outside of the
state by storing cigarettes received in interstate commerce from such
manufacturer subject to distribution or delivery to distributors upon
orders received by said manufacturer in interstate commerce and
transmitted to such distributing agent for fulfillment from such
place of storage.
10. "Distributing agent's permit" shall mean and include
permits issued by the department to distributing agents.
11. "Distributor" shall mean and include every person in this
state who manufactures or produces cigarettes or who ships,
transports, or imports into this state or in any manner acquires or
possesses cigarettes without stamps affixed for the purpose of making
a "first sale" of the same within the state.
12. "Drop shipment" shall mean and include any delivery of
cigarettes received by any person within this state when payment for
such cigarettes is made to the shipper or seller by or through a
person other than the consignee.
13. "First sale" shall mean and include the first sale or
distribution of cigarettes in intrastate commerce, or the first use
or consumption of cigarettes within this state.
14. "Individual packages of cigarettes" shall mean and
include every package of cigarettes ordinarily sold at retail.
15. "Manufacturer" shall mean and include every person who
ships cigarettes into this state from outside the state.
16. "Manufacturer's permit" shall mean and include permits
issued by the department to a manufacturer.
17. "Package" or "pack" means a container of any kind in
which cigarettes or tobacco products are offered for sale, sold, or
otherwise distributed to consumers.
18. "Person" shall mean and include every individual, firm,
association, joint stock company, syndicate, copartnership,
corporation, trustee, agency or receiver, or respective legal
representative.
19. "Place of business" is construed to mean and include any
place where cigarettes are sold or where cigarettes are stored within
or without the state of Iowa by the holder of an Iowa permit or kept
for the purpose of sale or consumption; or if sold from any vehicle
or train, the vehicle or train on which or from which such cigarettes
are sold shall constitute a place of business.
20. "Previously used stamp" shall mean and include any stamp
which is used, sold, or possessed for the purpose of sale or use, to
evidence the payment of the tax herein imposed on an individual
package of cigarettes after said stamp has, anterior to such use,
sale, or possession, been used on a previous or separate individual
package of cigarettes to evidence the payment of tax as aforesaid.
21. "Retailer" shall mean and include every person in this
state who shall sell, distribute, or offer for sale for consumption
or possess for the purpose of sale for consumption, cigarettes
irrespective of quantity or amount or the number of sales.
22. "Retail permit" shall mean and include permits issued to
retailers.
23. "Self-service display" means any manner of product
display, placement, or storage from which a person purchasing the
product may take possession of the product, prior to purchase,
without assistance from the retailer or employee of the retailer, in
removing the product from a restricted access location.
24. "Stamps" means the stamp or stamps printed, manufactured
or made by authority of the director and issued, sold or circulated
by the department and by the use of which the tax levied is paid. It
also means any impression, indicium, or character fixed upon packages
of cigarettes by metered stamping machine or device which may be
authorized by the director to the holder of state or manufacturers'
permits and by the use of which the tax levied is paid.
25. "State permit" shall mean and include permits issued by
the department to distributors, wholesalers, and retailers.
26. "Tobacco products" means cigars; little cigars as defined
in section 453A.42, subsection 5; cheroots; stogies; periques;
granulated; plug cut, crimp cut, ready rubbed, and other smoking
tobacco; snuff, snuff flour; cavendish; plug and twist tobacco;
fine-cut and other chewing tobaccos; shorts; or refuse scraps,
clippings, cuttings and sweepings of tobacco, and other kinds and
forms of tobacco, prepared in such manner as to be suitable for
chewing or smoking in a pipe or otherwise, or both for chewing and
smoking; but does not mean cigarettes.
27. "Wholesaler" shall mean and include every person other
than a distributor or distributing agent who engages in the business
of selling or distributing cigarettes within the state, for the
purpose of resale. Section History: Early Form
[C24, 27, 31, 35, 39, § 1552; C46, 50, 54, 58, 62, 66, 71, 73,
75, 77, 79, 81, § 98.1] Section History: Recent Form
86 Acts, ch 1245, § 401; 91 Acts, ch 240, §1, 2
C93, § 453A.1
98 Acts, ch 1129, § 2; 2003 Acts, ch 145, §286
Referred to in § 101B.2, 142A.2, 142A.6, 453A.3, 453A.5, 453A.22,
453A.42, 453A.47A
453A.2 PERSONS UNDER LEGAL AGE.
1. A person shall not sell, give, or otherwise supply any
tobacco, tobacco products, or cigarettes to any person under eighteen
years of age.
2. A person under eighteen years of age shall not smoke, use,
possess, purchase, or attempt to purchase any tobacco, tobacco
products, or cigarettes.
3. Possession of cigarettes or tobacco products by an individual
under eighteen years of age does not constitute a violation under
this section if the individual under eighteen years of age possesses
the cigarettes or tobacco products as part of the individual's
employment and the individual is employed by a person who holds a
valid permit under this chapter or who lawfully offers for sale or
sells cigarettes or tobacco products.
4. The Iowa department of public health, a county health
department, a city health department, or a city may directly enforce
this section in district court and initiate proceedings pursuant to
section 453A.22 before a permit-issuing authority which issued the
permit against a permit holder violating this section.
5. Payment and distribution of court costs, fees, and fines in a
prosecution initiated by a city or county shall be made as provided
in chapter 602 for violation of a city or county ordinance.
6. If a county health department, a city health department, or a
city has not assessed a penalty pursuant to section 453A.22,
subsection 2, for a violation of subsection 1, within sixty days of
the adjudication of the violation, the matter shall be transferred to
and be the exclusive responsibility of the Iowa department of public
health. Following transfer of the matter, if the violation is
contested, the Iowa department of public health shall request an
administrative hearing before an administrative law judge, assigned
by the division of administrative hearings of the department of
inspections and appeals in accordance with the provisions of section
10A.801, to adjudicate the matter pursuant to chapter 17A.
7. A tobacco compliance employee training fund is created in the
office of the treasurer of state. The fund shall consist of civil
penalties assessed by the Iowa department of public health under
section 453A.22 for violations of this section. Moneys in the fund
are appropriated to the alcoholic beverages division of the
department of commerce and shall be used to develop and administer
the tobacco compliance employee training program under section
453A.5. Moneys deposited in the fund shall not be transferred, used,
obligated, appropriated, or otherwise encumbered except as provided
in this subsection. Notwithstanding section 8.33, any unexpended
balance in the fund at the end of the fiscal year shall be retained
in the fund.
8. A person shall not be guilty of a violation of this section if
conduct that would otherwise constitute a violation is performed to
assess compliance with cigarette and tobacco products laws if any of
the following applies:
a. The compliance effort is conducted by or under the
supervision of law enforcement officers.
b. The compliance effort is conducted with the advance
knowledge of law enforcement officers and reasonable measures are
adopted by those conducting the effort to ensure that use of
cigarettes or tobacco products by individuals under eighteen years of
age does not result from participation by any individual under
eighteen years of age in the compliance effort.
For the purposes of this subsection, "law enforcement officer"
means a peace officer as defined in section 801.4 and includes
persons designated under subsection 4 to enforce this section. Section History: Early Form
[C97, § 5005, 5006; C24, 27, 31, 35, 39, § 1553; C46, 50, 54,
58, 62, 66, 71, 73, 75, 77, 79, 81, § 98.2] Section History: Recent Form
87 Acts, ch 83, § 1; 91 Acts, ch 240, §3
C93, § 453A.2
94 Acts, ch 1172, §37; 2000 Acts, ch 1105, §2; 2001 Acts, ch 116,
§25; 2003 Acts, ch 26, §1, 5, 7; 2003 Acts, ch 179, §130, 159; 2003
Acts, 1st Ex, ch 2, §29, 33
Referred to in § 321.216C, 453A.3, 453A.5, 453A.22, 602.6405,
805.6, 805.8C(3b, 3c)
For scheduled fines applicable to violations of subsections 1 and
2, see §805.8C, subsection 3, paragraphs b and c Footnotes
Subsection 6 applies to violations pending on April 11, 2003, for
which a penalty has not been assessed under §453A.22, subsection 2;
cities and city and county health departments deemed to have
jurisdiction to assess valid penalties on and after April 11, 2003,
but before June 30, 2003, for violations pending on April 11, 2003;
2003 Acts, ch 26, §5, 7; 2003 Acts, 1st Ex, ch 2, §29, 33
453A.3 PENALTY.
1. a. A person, other than a retailer as defined in section
453A.1 or 453A.42, who violates section 453A.2, subsection 1, is
guilty of a simple misdemeanor.
b. An employee of a retailer as defined in section 453A.1 or
453A.42, who violates section 453A.2, subsection 1, commits a simple
misdemeanor punishable as a scheduled violation under section 805.8C,
subsection 3, paragraph "b".
2. A person who violates section 453A.2, subsection 2, is subject
to the following, as applicable:
a. A civil penalty pursuant to section 805.8C, subsection 3,
paragraph "c". Notwithstanding section 602.8106 or any other
provision to the contrary, any civil penalty paid under this
subsection shall be retained by the city or county enforcing the
violation.
b. For a first offense, performance of eight hours of
community work requirements, unless waived by the court.
c. For a second offense, performance of twelve hours of
community work requirements.
d. For a third or subsequent offense, performance of sixteen
hours of community work requirements. Section History: Early Form
[C97, § 5005, 5006; C24, 27, 31, 35, 39, § 1554; C46, 50, 54,
58, 62, 66, 71, 73, 75, 77, 79, 81, § 98.3] Section History: Recent Form
91 Acts, ch 240, §4
C93, § 453A.3
94 Acts, ch 1172, §38; 97 Acts, ch 74, §3; 98 Acts, ch 1100, §63;
2000 Acts, ch 1105, §3; 2000 Acts, ch 1232, §70, 95; 2001 Acts, ch
137, §5; 2004 Acts, ch 1101, §59; 2005 Acts, ch 93, §1
453A.4 SEIZURE OF FALSE OR ALTERED DRIVER'S LICENSE
OR NONOPERATOR'S IDENTIFICATION CARD.
1. If a person holding a permit under this chapter or an employee
of such a permittee has a reasonable belief based on factual evidence
that a driver's license as defined in section 321.1, subsection 20A,
or nonoperator's identification card issued pursuant to section
321.190 offered by a person who wishes to purchase cigarettes or
tobacco products is altered or falsified or belongs to another
person, the permittee or employee may retain the driver's license or
nonoperator's identification card. Within twenty-four hours, the
card shall be delivered to the appropriate city or county law
enforcement agency of the jurisdiction in which the permittee's
premises are located, and the permittee shall file a written report
of the circumstances under which the card was retained. The local
law enforcement agency may investigate whether a violation of section
321.216, 321.216A, or 321.216C has occurred. If an investigation is
not initiated or probable cause is not established by the local law
enforcement agency, the driver's license or nonoperator's
identification card shall be delivered to the person to whom it was
issued. The local law enforcement agency may forward the card with
the report to the state department of transportation for
investigation, in which case, the state department of transportation
may investigate whether a violation of section 321.216, 321.216A, or
321.216C has occurred. The state department of transportation shall
return the card to the person to whom it was issued if an
investigation is not initiated or probable cause is not established.
2. Upon taking possession of an identification card as provided
in subsection 1, a receipt for the card with the date and hour of
seizure noted shall be provided to the person from whom the card is
seized.
3. A person holding a permit under this chapter or an employee of
such a permittee is not subject to criminal prosecution for, or to
civil liability for damages alleged to have resulted from, the
retention and delivery of a driver's license or a nonoperator's
identification card which is taken pursuant to subsections 1 and 2.
This section shall not be construed to relieve a permittee or an
employee of such a permittee from civil liability for damages
resulting from the use of unreasonable force in obtaining the alleged
altered or falsified driver's license or identification card or the
driver's license or identification card believed to belong to another
person. Section History: Recent Form
2000 Acts, ch 1105, §4
453A.5 TOBACCO COMPLIANCE EMPLOYEE TRAINING
PROGRAM.
1. The alcoholic beverages division of the department of commerce
shall develop a tobacco compliance employee training program not to
exceed two hours in length for employees and prospective employees of
retailers, as defined in sections 453A.1 and 453A.42, to inform the
employees about state and federal laws and regulations regarding the
sale of cigarettes and tobacco products to persons under eighteen
years of age and compliance with and the importance of laws regarding
the sale of cigarettes and tobacco products to persons under eighteen
years of age.
2. The tobacco compliance employee training program shall be made
available to employees and prospective employees of retailers, as
defined in sections 453A.1 and 453A.42, at no cost to the employee,
the prospective employee, or the retailer, and in a manner which is
as convenient and accessible to the extent practicable throughout the
state so as to encourage attendance. Contingent upon the
availability of specified funds for provision of the program, the
division shall schedule the program on at least a monthly basis and
the program shall be available at a location in at least a majority
of counties.
3. Upon completion of the tobacco compliance employee training
program, an employee or prospective employee shall receive a
certificate of completion, which shall be valid for a period of two
years, unless the employee or prospective employee is convicted of a
violation of section 453A.2, subsection 1, in which case the
certificate shall be void.
4. The tobacco compliance employee training program shall also
offer periodic continuing employee training and recertification for
employees who have completed initial training and received
certificates of completion. Section History: Recent Form
2003 Acts, ch 26, §2, 7; 2005 Acts, ch 93, §2
Referred to in § 453A.2, 453A.22
453A.6 TAX IMPOSED.
1. There is imposed, and shall be collected and paid to the
department, a tax on all cigarettes used or otherwise disposed of in
this state for any purpose equal to six and eight-tenths cents on
each cigarette.
2. The said tax shall be paid only once by the person making the
"first sale" in this state, and shall become due and payable as soon
as such cigarettes are subject to a "first sale" in Iowa, it being
intended to impose the tax as soon as such cigarettes are received by
any person in Iowa for the purpose of making a "first sale" of same.
If the person making the "first sale" did not pay such tax, it shall
be paid by any person into whose possession such cigarettes come
until said tax has been paid in full. No person, however, shall be
required to pay a tax on cigarettes brought into this state on or
about the person in quantities of forty cigarettes or less, when such
cigarettes have had the individual packages or seals thereof broken
and when such cigarettes are actually used by said person and not
sold or offered for sale.
3. Payment of the tax shall be evidenced by stamps purchased from
the department by a distributor or manufacturer and securely affixed
to each individual package of cigarettes in amounts equal to the tax
as imposed by this chapter, or by the impressing of an indicium upon
individual packages of cigarettes, under regulations prescribed by
the director.
4. Any other person who purchases or is in possession of
unstamped cigarettes shall pay the tax directly to the department.
5. The per cigarette amount of the tax shall be added to the
selling price of every package of cigarettes sold in this state and
shall be collected from the purchaser so that the ultimate consumer
bears the burden of the tax.
6. All excise taxes collected under this division by a
distributor, manufacturer, or any individual are deemed to be held in
trust for the state of Iowa.
7. Cigarettes shall be sold only in packages of twenty or more
cigarettes. Section History: Early Form
[C24, 27, 31, 35, § 1570; C39, § 1556.01; C46, 50, 54, 58, 62,
66, 71, 73, 75, 77, 79, 81, § 98.6] Section History: Recent Form
83 Acts, ch 165, § 1; 85 Acts, ch 32, § 1; 88 Acts, ch 1005, § 1;
88 Acts, ch 1153, §1; 91 Acts, ch 267, §509, 510
C93, § 453A.6
99 Acts, ch 151, §74, 75, 89; 2004 Acts, ch 1073, §36; 2007 Acts,
ch 17, §3, 4, 12
Referred to in § 453A.35, 453A.35A, 453A.40, 453A.43
Inventory tax, § 453A.40
453A.7 PRINTING AND CUSTODY OF STAMPS.
1. The director of the department of administrative services
shall have printed or manufactured, cigarette and little cigar tax
stamps of such design, size, denomination, and type and in such
quantities as may be determined by the director of revenue. The
stamps shall be so manufactured as to render them easy to be securely
attached to each individual package of cigarettes and little cigars
or cigarette papers. The cigarette and little cigar tax stamps shall
be in the possession of and under the control of the director of
revenue and the director shall keep accurate records of all cigarette
and little cigar tax stamps.
2. There is appropriated annually from the state treasury from
funds not otherwise appropriated an amount sufficient to carry out
the provisions of this section. Section History: Early Form
[C24, 27, 31, 35, § 1574; C39, § 1556.02; C46, 50, 54, 58, 62,
66, 71, 73, 75, 77, 79, 81, § 98.7] Section History: Recent Form
C93, § 453A.7
93 Acts, ch 180, §13; 2003 Acts, ch 145, §286; 2007 Acts, ch 186,
§33
See annual Iowa Acts for temporary exceptions, changes, or other
noncodified enactments modifying the funding provided under this
section
453A.8 SALE AND EXCHANGE OF STAMPS.
1. Stamps shall be sold by and purchased from the department.
The department shall sell stamps to the holder of a state
distributor's or manufacturer's permit which has not been revoked and
to no other person. Stamps shall be sold to the permit holders at a
discount of two percent of the face value. Stamps shall be sold in
unbroken rolls of thirty thousand stamps or unbroken lots of any
other form authorized by the director.
2. Orders for cigarette tax stamps, including the payment for
such stamps, shall be sent direct to the department on a form to be
prescribed by the director, except as provided in subsection 6.
3. The department may make refunds on unused stamps to the person
who purchased the stamps at a price equal to the amount paid for the
stamps when proof satisfactory to the department is furnished that
any stamps upon which a refund is requested were properly purchased
from the department and paid for by the person requesting the refund.
In making the refund, the department shall prepare a voucher showing
the amount of refund due and to whom payable and shall authorize the
department of administrative services to issue a warrant upon order
of the director to pay the refund out of any funds in the state
treasury not otherwise appropriated.
The director may promulgate rules providing for refunds of the
face value of stamps, less any discount, affixed to any cigarettes
which have become unfit for use and consumption, unsalable, or for
any other legitimate loss which may occur, upon proof of such loss.
Refund shall be made in the same manner as provided for unused
stamps.
4. The department may in the enforcement of this division recall
any stamps which have been sold by the department and which have not
been used, and the department shall, upon receipt of recalled stamps,
issue a refund for tax stamps surrendered for the face value of the
stamps less the amount of the discount. The purchaser of stamps
shall surrender any unused stamps for refund upon demand of the
department.
5. The department shall keep a record of all stamps sold by the
department and of all refunds made by the department.
6. The director may authorize a bank as defined by section
524.103, subsection 8, to sell stamps. A bank authorized to sell
stamps shall comply with all of the requirements governing the sale
of stamps by the department. Section 453A.12 shall apply to any bank
authorized to sell stamps. Section History: Early Form
[C24, §1574, 1575; C27, 31, 35, §1574-al, 1575; C39, §1556.03;
C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §98.8; 81 Acts, ch
43, §2] Section History: Recent Form
83 Acts, ch 165, § 2; 92 Acts, ch 1163, § 22
C93, § 453A.8
99 Acts, ch 151, §76, 89; 2004 Acts, ch 1101, §60
Referred to in § 453A.40
Inventory tax, §453A.40
453A.9 CHANGE OF DESIGN.
The design of the stamps used may be changed as often as the
director deems necessary for the best enforcement of the provisions
of this division. Section History: Early Form
[C39, § 1556.04; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.9] Section History: Recent Form
C93, § 453A.9
453A.10 AFFIXING OF STAMPS BY DISTRIBUTORS.
Except as provided in section 453A.17, every distributor holding
an Iowa permit shall cause to be affixed, within or without the state
of Iowa, upon every individual package of cigarettes received by the
distributor in this state or for distribution in this state, upon
which no sufficient tax stamp is already affixed, a stamp or stamps
of an amount equal to the tax due thereon. Such stamps shall be
affixed within forty-eight hours, exclusive of Sundays and legal
holidays, from the hour the cigarettes were received, and shall be
affixed before such distributor sells, offers for sale, consumes, or
otherwise distributes or transports the same. It shall be unlawful
for any person, other than a distributing agent or distributor,
bonded pursuant to section 453A.14, or common carrier to receive or
accept delivery of any cigarettes without stamps affixed to evidence
the payment of the tax, or without having in possession the requisite
amount or number of stamps necessary to stamp such cigarettes, and
the possession of any unstamped cigarettes, without the possession of
the requisite amount or number of stamps, shall be prima facie
evidence of the violation of this provision. Section History: Early Form
[C24, 27, 31, 35, § 1571; C39, § 1556.05; C46, 50, 54, 58, 62,
66, 71, 73, 75, 77, 79, 81, § 98.10] Section History: Recent Form
C93, § 453A.10
Referred to in § 101B.2, 101B.3
453A.11 CANCELLATION OF STAMPS.
Stamps affixed to a package of cigarettes shall not be canceled by
any letter, numeral, or other mark of identification or otherwise
mutilated in any manner that will prevent or hinder the department in
making an examination as to the genuineness of the stamp. However,
the director may require such cancellation of the tax stamps affixed
to packages of cigarettes which is necessary to carry out properly
the provisions of this division. A person who cancels or causes the
cancellation of stamps in violation of this section shall be
considered in possession of unstamped cigarettes and is subject to
the penalty provided in section 453A.31, subsection 1. Section History: Early Form
[C39, § 1556.06; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.11] Section History: Recent Form
C93, § 453A.11
2004 Acts, ch 1073, §37
453A.12 USE OF STAMPING MACHINES.
The department may purchase and supply suitable machines or
devices to the holders of a state or manufacturer's permit, or
authorize the leasing by the permit holder of such machines or the
metering device or both, and provide under proper regulation and
direction for the impression of a distinctive imprint, indicium or
character upon individual packages of cigarettes, as evidence of the
payment of the tax imposed by this division, in lieu of the purchase
and affixation of stamps.
If the director decides to purchase the machines they shall be
paid for upon order of the director out of any funds in the general
fund of the state not otherwise appropriated.
The machines or devices shall be so constructed as to record or
meter the number of impressions or indicia made and shall at all
times be open for inspection by the department.
All of the provisions of this division relating to the collection
of the tax by means of the sale and affixation of stamps shall apply
in the use of the stamping machines or devices, including the right
of refund. Section History: Early Form
[C39, § 1556.07; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.12] Section History: Recent Form
C93, § 453A.12
Referred to in § 453A.8, 453A.40
Inventory tax, § 453A.40
453A.13 DISTRIBUTOR'S, WHOLESALER'S, AND RETAILER'S
PERMITS.
1. Permits required. Every distributor, wholesaler,
cigarette vendor, and retailer, now engaged or who desires to become
engaged in the sale or use of cigarettes, upon which a tax is
required to be paid, shall obtain a state or retail cigarette permit
as a distributor, wholesaler, cigarette vendor, or retailer, as the
case may be.
2. Issuance or denial.
a. The department shall issue state permits to distributors,
wholesalers, and cigarette vendors subject to the conditions provided
in this division. Cities may issue retail permits to dealers within
their respective limits. County boards of supervisors may issue
retail permits to dealers in their respective counties, outside of
the corporate limits of cities.
b. The department may deny the issuance of a permit to a
distributor, wholesaler, vendor or retailer who is substantially
delinquent in the payment of a tax due, or the interest or penalty on
the tax, administered by the department at the time of application.
If the applicant is a partnership, a permit may be denied if a
partner is substantially delinquent on any delinquent tax, penalty or
interest. If the applicant is a corporation, a permit may be denied
if any officer having a substantial legal or equitable interest in
the ownership of the corporation owes any delinquent tax, interest or
penalty of the applicant corporation.
c. The department, or a city or county, shall submit a
duplicate of any application for a retail permit and any retail
permit issued by the entity under this subsection to the Iowa
department of public health within thirty days of the issuance.
3. Fees -- expiration. All permits provided for in this
division shall expire on June 30 of each year. A permit shall not be
granted or issued until the applicant has paid for the period ending
June 30 next, to the department or the city or county granting the
permit, the fees provided for in this division. The annual state
permit fee for a distributor, cigarette vendor, and wholesaler is one
hundred dollars when the permit is granted during the months of July,
August, or September. However, whenever a state permit holder
operates more than one place of business, a duplicate state permit
shall be issued for each additional place of business on payment of
five dollars for each duplicate state permit, but refunds as provided
in this division do not apply to any duplicate permit issued.
The fee for retail permits is as follows when the permit is
granted during the months of July, August, or September:
a. In places outside any city, fifty dollars.
b. In cities of less than fifteen thousand population,
seventy-five dollars.
c. In cities of fifteen thousand or more population, one
hundred dollars.
If any permit is granted during the months of October, November,
or December, the fee shall be three-fourths of the above maximum
schedule; if granted during the months of January, February, or
March, one-half of the maximum schedule, and if granted during the
months of April, May, or June, one-fourth of the maximum schedule.
4. Refunds.
a. An unrevoked permit for which the holder has paid the full
annual fee may be surrendered during the first nine months of said
year to the officer issuing it, and the department, or the city or
county granting the permit shall make refunds to the said holder as
follows:
Three-fourths of the annual fee if the surrender is made during
July, August, or September.
One-half of the annual fee if the surrender is made during
October, November, or December.
One-fourth of the annual fee if the surrender is made during
January, February, or March.
b. An unrevoked permit for which the holder has paid
three-fourths of a full annual fee may be so surrendered during the
first six months of the period covered by said payment and the said
department, city or county shall make refunds to the holder as
follows:
A sum equal to one-half of an annual fee if the surrender is made
during October, November or December.
A sum equal to one-fourth of an annual fee if the surrender is
made during January, February or March.
c. An unrevoked permit for which the holder has paid one-half
of a full annual fee may be so surrendered during the first three
months of the period covered by said payment, and the department,
city or county, shall refund to the holder a sum equal to one-fourth
of an annual fee.
5. Application -- bond. Permits shall be issued only upon
applications accompanied by the fee indicated above, and by an
adequate bond as provided in section 453A.14, and upon forms
furnished by the department upon written request. The failure to
furnish such forms shall be no excuse for the failure to file the
forms unless absolute refusal is shown. The forms shall set forth
all of the following:
a. The manner under which the distributor, wholesaler, or
retailer, transacts or intends to transact such business as a
distributor, wholesaler, or retailer.
b. The principal office, residence, and place of business
where the permit is to apply.
c. If the applicant is not an individual, the principal
officers or members and their addresses.
d. Any other information as the director shall by rules
prescribe.
6. No sales without permit. No distributor, wholesaler,
cigarette vendor, or retailer shall sell any cigarettes until such
application has been filed and the fee prescribed paid for a permit
and until such permit is obtained and only while such permit is
unrevoked and unexpired.
7. Number of permits -- trucks. An application shall be
filed and a permit obtained for each place of business owned or
operated by a distributor, wholesaler, or retailer, excepting that no
permit need be obtained for a delivery or sales truck of a
distributor or wholesaler holding a permit, provided that the
director may by regulation require that said truck bear the
distributor's or wholesaler's name, and that the permit number of the
place of business for and from which it operates be conspicuously
displayed on the outside of the body of the truck, immediately under
the name.
8. Group business. Any person who operates both as a
distributor and wholesaler in the same place of business shall only
be required to obtain a state permit for the particular place of
business where such operation of said business is conducted. A
separate retail permit, however, shall be required if any distributor
or wholesaler sells cigarettes at both retail and wholesale.
9. Permit -- form and contents. Each permit issued shall
describe clearly the place of business for which it is issued, shall
be nonassignable, consecutively numbered, designating the kind of
permit, and shall authorize the sale of cigarettes in this state
subject to the limitations and restrictions herein contained. The
retail permits shall be upon forms furnished by the department or on
forms made available or approved by the department.
10. Permit displayed. The permit shall, at all times, be
publicly displayed by the distributor, wholesaler, or retailer at the
place of business so as to be easily seen by the public and the
persons authorized to inspect the place of business. The proprietor
or keeper of any building or place where cigarettes and other tobacco
products are kept for sale, or with intent to sell, shall upon
request of any agent of the department or any peace officer exhibit
the permit. A refusal or failure to exhibit the permit is prima
facie evidence that the cigarettes or other tobacco products are kept
for sale or with intent to sell in violation of this division. Section History: Early Form
[S13, § 5007-a; C24, 27, § 1557, 1558, 1560, 1563, 1564, 1584;
C31, 35, § 1557, 1558, 1560, 1563, 1563-d1, 1564, 1584; C39, §
1556.08; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §
98.13] Section History: Recent Form
86 Acts, ch 1007, § 5; 86 Acts, ch 1241, § 1
C93, § 453A.13
94 Acts, ch 1165, §38; 2000 Acts, ch 1105, §5; 2007 Acts, ch 186,
§34, 35
Referred to in § 421.26, 453A.36, 453A.40
453A.14 BONDS.
1. No state or manufacturer's permit shall be issued until the
applicant files a bond, with good and sufficient surety, to be
approved by the director, which bond shall be in favor of the state
and conditioned upon the payment of taxes, damages, fines, penalties,
and costs adjudged against the permit holder for violation of any of
the provisions of this division.
The bonds shall be on forms prescribed by the director and in the
following amounts:
a. State permit, not less than five hundred dollars.
b. Manufacturer's permit, not less than five thousand
dollars.
2. A person shall not engage in interstate business unless the
person files a bond, with good and sufficient surety in an amount of
not less than one thousand dollars. The amount of the bond required
of the person shall be fixed by the director, subject to the minimum
limitation provided in this section. The bond is subject to approval
by the director and shall be payable to the state in Des Moines, Polk
county, and conditioned upon the payment of taxes, damages, fines,
penalties, and costs adjudged against the person for violation of any
of the requirements of this division affecting the person, on a form
prescribed by the director.
3. An additional bond or a new bond may be required by the
director at any time an existing bond becomes insufficient or the
surety thereon becomes unsatisfactory, which additional bond, or new
bond, shall be supplied within ten days after demand. On failure to
supply a new bond or additional bond within ten days after demand,
the director may cancel any existing bond made and secured by and for
the person. If the bond is canceled the person shall within
forty-eight hours after receiving cigarettes or forty-eight hours
after the cancellation, excluding Sundays and legal holidays, cause
any cigarettes in the person's possession to have the requisite
amount of stamps affixed to represent the tax. Section History: Early Form
[C24, 27, 31, 35, § 1561, 1562; C39, § 1556.09; C46, 50, 54,
58, 62, 66, 71, 73, 75, 77, 79, 81, § 98.14] Section History: Recent Form
C93, § 453A.14
Referred to in § 453A.10, 453A.13, 453A.15, 453A.17
453A.15 RECORDS AND REPORTS OF PERMIT HOLDERS.
1. The director may prescribe the forms necessary for the
efficient administration of this division and may require uniform
books and records to be used and kept by each permit holder or other
person as deemed necessary. The director may also require each
permit holder or other person to keep and retain in the director's
possession evidence on prescribed forms of all transactions involving
the purchase and sale of cigarettes or the purchase and use of
stamps. The evidence shall be kept for a period of three years from
the date of each transaction, for the inspection at all times by the
department.
2. Where a state permit holder sells cigarettes at retail, the
holder shall be required to maintain detailed records for sales of
cigarettes to be sold at retail and the cigarette sales records shall
be kept separate and apart.
3. The director may by regulation require every holder of a
manufacturer's or state permit or other person to make and deliver to
the department on or before the tenth day of each month a report or
reports for the preceding calendar month, upon a form or forms
prescribed by the director, and may require that the reports shall be
properly sworn to and executed by the permit holder or the holder's
duly authorized representative or other person.
4. Every permit holder or other person shall, when requested by
the department, make additional reports as the department deems
necessary and proper and shall at the request of the department
furnish full and complete information pertaining to any transaction
of the permit holder or other person involving the purchase or sale
or use of cigarettes or purchase of cigarette stamps.
5. Every person engaged in the business of selling cigarettes in
interstate commerce only, who has, by furnishing the bond required in
section 453A.14, been permitted to set aside or store cigarettes in
this state for the conduct of such interstate business without the
stamps affixed thereto, shall be required to keep such records and
make such reports to the department as are required by the
department.
6. If any distributor, manufacturer, or other person fails or
refuses to pay any tax, penalties, or cost of audit hereinafter
provided, and it becomes necessary to bring suit or to intervene in
any manner for the establishment or collection of said claims, in any
judicial proceedings, any report filed in the office of the director
by the distributor, manufacturer, or other person, or the
distributor's, manufacturer's, or other person's representative, or a
copy thereof, certified to by the director, showing the number of
cigarettes sold by the distributor, the distributor's representative,
the manufacturer, or the other person, upon which a tax, penalty, or
cost of audit has not been paid, or any audit made by the department
from the books or records of the distributor, manufacturer, or other
person when signed and sworn to by the agent of the department making
the audit as being made from the records of the distributor,
manufacturer, or other person from or to whom the distributor,
manufacturer, or other person has bought, received, or delivered
cigarettes, whether from a transportation company or otherwise, such
report or audit shall be admissible in evidence in such proceedings
and shall be prima facie evidence of the contents thereof. However,
the incorrectness of the report or audit may be shown.
7. The director may require by rule that reports required to be
made under this division be filed by electronic transmission. Section History: Early Form
[C27, 31, 35, § 1570-b1, -b2; C39, § 1556.10; C46, 50, 54, 58,
62, 66, 71, 73, 75, 77, 79, 81, § 98.15] Section History: Recent Form
C93, § 453A.15
99 Acts, ch 151, §77, 89; 2004 Acts, ch 1073, §38; 2007 Acts, ch
186, §36, 37
453A.16 MANUFACTURER'S PERMIT.
The department may, upon application of any manufacturer, issue
without charge to the manufacturer a manufacturer's permit. The
application shall contain information as the director shall
prescribe. The holder of a manufacturer's permit is authorized to
purchase stamps from the department, and must affix stamps to
individual packages of cigarettes outside of this state, prior to
their shipment into the state unless the cigarettes are shipped to an
Iowa permitted distributor or an Iowa permitted distributor's agent.
Section History: Early Form
[C39, § 1556.11; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.16] Section History: Recent Form
C93, § 453A.16
99 Acts, ch 151, §78, 89
Referred to in § 421.26
453A.17 DISTRIBUTING AGENT'S PERMIT.
1. Every distributing agent in the state, now engaged, or who
desires to become engaged, in the business of storing unstamped
cigarettes which are received in interstate commerce for distribution
or delivery only upon order received from without the state or to be
sold outside the state, shall file with the department, an
application for a distributing agent's permit, on a form prescribed
by the director, to be furnished upon written request. The failure
to furnish shall be no excuse for the failure to file the same unless
an absolute refusal is shown. Said form shall set forth the name
under which such distributing agent transacts or intends to transact
such business as a distributing agent, the principal office and place
of business in Iowa to which the permit is to apply, and if other
than an individual, the principal officers or members thereof and
their addresses. The director may require any other information in
said application. No distributing agent shall engage in such
business until such application has been filed and fee in the sum of
one hundred dollars paid for the permit and until the permit has been
obtained. Such permit shall expire on June 30 following the date of
issuance. All of the provisions of the last two paragraphs of
section 453A.14, relative to bonds, are incorporated herein and by
this reference made applicable to distributing agents. Upon failure
to furnish adequate bond as required, the permit shall be revoked
without hearing. An application shall be filed and a permit obtained
for each place of business owned or operated by a distributing agent.
2. Upon receipt of the application, bond and permit fee, the
department may issue to every distributing agent for the place of
business designated a nonassignable consecutively numbered permit,
authorizing the storing, and distribution of unstamped cigarettes
within this state when the distribution is made upon interstate
orders only. A distributing agent may also transport unstamped
cigarettes in the agent's own conveyances to the state boundary for
distribution outside the state, and any nonresident customer of the
distributor may purchase and convey unstamped cigarettes to the state
line for distribution outside the state. The nonresident purchaser
shall have in possession an invoice evidencing the purchase of the
unstamped cigarettes, which must be exhibited upon request to any
peace officer or agent charged with the enforcement of this division.
3. Cigarettes set aside for interstate business must be kept
separate from intrastate stock and those not so kept shall be
considered as intrastate stock and subject to the same requirements
as cigarettes possessed for the purpose of a "first sale".
4. It is unlawful for any distributing agent to sell at retail
cigarettes from automobiles, trucks, or any similar conveyances. Section History: Early Form
[C39, § 1556.12; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.17] Section History: Recent Form
C93, § 453A.17
Referred to in § 453A.10
453A.18 FORMS FOR RECORDS AND REPORTS.
The department shall furnish or make available in electronic form,
without charge, to holders of the various permits, forms in
sufficient quantities to enable permit holders to make the reports
required to be made under this division. The permit holders shall
furnish at their own expense the books, records, and invoices,
required to be used and kept, but the books, records, and invoices
shall be in exact conformity to the forms prescribed for that purpose
by the director, and shall be kept and used in the manner prescribed
by the director. However, the director may, by express order in
certain cases, authorize permit holders to keep their records in a
manner and upon forms other than those prescribed. The authorization
may be revoked at any time. Section History: Early Form
[C39, § 1556.13; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.18] Section History: Recent Form
C93, § 453A.18
2007 Acts, ch 186, §38
453A.19 EXAMINATION OF RECORDS AND PREMISES.
1. For the purpose of enabling the department to determine the
tax liability of permit holders or any other person dealing in
cigarettes or to determine whether a tax liability has been incurred,
the department shall have the right to inspect any premises of the
holder of an Iowa permit located within or without the state of Iowa
where cigarettes are manufactured, produced, made, stored,
transported, sold, or offered for sale or exchange, and to examine
all of the records required to be kept or any other records that may
be kept incident to the conduct of the cigarette business of said
permit holder or any other person dealing in cigarettes.
2. The said authorized officers shall also have the right as an
incident to determining the said tax liability, or whether a tax
liability has been incurred, to examine all stocks of cigarettes and
cigarette stamps and for the foregoing purpose said authorized
officers shall also have the right to remain upon said premises for
such length of time as may be necessary to fully determine said tax
liability, or whether a tax liability has been incurred.
3. It shall be unlawful for any of the foregoing permit holders
to fail to produce upon demand of the department any records required
herein to be kept or to hinder or prevent in any manner the
inspection of said records or the examination of said premises.
4. In the case of any departmental inspection conducted under
this section requiring department personnel to travel outside the
state of Iowa, any additional costs incurred by the department for
out-of-state travel expenses shall be borne by the permittee. These
additional costs shall be those costs in excess of the costs of a
similar inspection conducted at the geographical point located within
the state of Iowa nearest to the out-of-state inspection point. In
lieu of conducting an on premises out-of-state inspection, the
department shall have the authority to direct the permittee to
assemble and transport all records described in subsection 1, to the
nearest practical and convenient geographical location in Iowa for
inspection by the department. Section History: Early Form
[C39, § 1556.14; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.19] Section History: Recent Form
C93, § 453A.19
453A.20 SUBPOENA FOR WITNESSES AND PAPERS.
For the purpose of enforcing the provisions of this chapter and of
detecting violations thereof, the director shall have the power to
administer oaths and to require by subpoena the attendance and
testimony of witnesses and the production of all relevant books,
papers, and records. Such attendance and production may be required
at the statehouse at Des Moines, or at any place convenient for such
investigation. In case any person fails or refuses to obey a
subpoena so issued, the director may procure an order from the
district court in the county where such person resides, or where such
person is found, requiring such person to appear for examination
and/or to produce such books, papers, and records as are required in
the subpoena. Failure to obey such order shall be punished by such
court as contempt thereof. Section History: Early Form
[C39, § 1556.15; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.20] Section History: Recent Form
C93, § 453A.20
453A.21 CIGARETTES RETAILER MAY NOT SELL.
Unless a retail permit holder shall also hold a state permit, it
shall be unlawful for a retailer to sell or have in the retailer's
possession cigarettes upon which the stamp tax has not been affixed.
Section History: Early Form
[C39, § 1556.16; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.21] Section History: Recent Form
C93, § 453A.21
453A.22 REVOCATION -- SUSPENSION -- CIVIL PENALTY.
1. If a person holding a permit issued by the department under
this division, including a retailer permit for railway car, has
willfully violated section 453A.2, the department shall revoke the
permit upon notice and hearing. If the person violates any other
provision of this division, or a rule adopted under this division, or
is substantially delinquent in the payment of a tax administered by
the department or the interest or penalty on the tax, or if the
person is a corporation and if any officer having a substantial legal
or equitable interest in the ownership of the corporation owes any
delinquent tax of the permit-holding corporation, or interest or
penalty on the tax, administered by the department, the department
may revoke the permit issued to the person, after giving the permit
holder an opportunity to be heard upon ten days' written notice
stating the reason for the contemplated revocation and the time and
place at which the person may appear and be heard. The hearing
before the department may be held at a site in the state as the
department may direct. The notice shall be given by mailing a copy
to the permit holder's place of business as it appears on the
application for a permit. If, upon hearing, the department finds
that the violation has occurred, the department may revoke the
permit.
2. If a retailer or employee of a retailer has violated section
453A.2 or section 453A.36, subsection 6, the department or local
authority, or the Iowa department of public health following transfer
of the matter to the Iowa department of public health pursuant to
section 453A.2, subsection 6, in addition to the other penalties
fixed for such violations in this section, shall assess a penalty
upon the same hearing and notice as prescribed in subsection 1 as
follows:
a. For a first violation, the retailer shall be assessed a
civil penalty in the amount of three hundred dollars. Failure to pay
the civil penalty as ordered under this subsection shall result in
automatic suspension of the permit for a period of fourteen days.
b. For a second violation within a period of two years, the
retailer shall be assessed a civil penalty in the amount of one
thousand five hundred dollars or the retailer's permit shall be
suspended for a period of thirty days. The retailer may select its
preference in the penalty to be applied under this paragraph.
c. For a third violation within a period of three years, the
retailer shall be assessed a civil penalty in the amount of one
thousand five hundred dollars and the retailer's permit shall be
suspended for a period of thirty days.
d. For a fourth violation within a period of three years, the
retailer shall be assessed a civil penalty in the amount of one
thousand five hundred dollars and the retailer's permit shall be
suspended for a period of sixty days.
e. For a fifth violation within a period of four years, the
retailer's permit shall be revoked.
3. If an employee of a retailer violates section 453A.2,
subsection 1, the retailer shall not be assessed a penalty under
subsection 2, and the violation shall be deemed not to be a violation
of section 453A.2, subsection 1, for the purpose of determining the
number of violations for which a penalty may be assessed pursuant to
subsection 2, if the employee holds a valid certificate of completion
of the tobacco compliance employee training program pursuant to
section 453A.5 at the time of the violation. A retailer may assert
only once in a four-year period the bar under this subsection against
assessment of a penalty pursuant to subsection 2, for a violation of
section 453A.2, that takes place at the same place of business
location.
4. Reserved.
5. If a permit is revoked a new permit shall not be issued to the
permit holder for any place of business, or to any other person for
the place of business at which the violation occurred, until one year
has expired from the date of revocation, unless good cause to the
contrary is shown to the issuing authority.
6. Notwithstanding subsection 5, if a retail permit is suspended
or revoked under this section, the suspension or revocation shall
only apply to the place of business at which the violation occurred
and shall not apply to any other place of business to which the
retail permit applies but at which the violation did not occur.
7. The department or local authority shall report the suspension
or revocation of a retail permit under this section to the Iowa
department of public health within thirty days of the suspension or
revocation of the retail permit.
8. For the purposes of this section, "retailer" means
retailer as defined in sections 453A.1 and 453A.42 and "retail
permit" includes permits issued to retailers under division I or
division II of this chapter. Section History: Early Form
[C24, 27, 31, 35, § 1559; C39, § 1556.17; C46, 50, 54, 58, 62,
66, 71, 73, 75, 77, 79, 81, § 98.22] Section History: Recent Form
86 Acts, ch 1007, § 6; 86 Acts, ch 1241, § 2; 89 Acts, ch 251, §1;
91 Acts, ch 240, §5
C93, § 453A.22
2000 Acts, ch 1105, §6, 7; 2000 Acts, ch 1232, §71, 95; 2003 Acts,
ch 26, §3--7; 2005 Acts, ch 93, §3; 2006 Acts, ch 1030, §41
Referred to in § 453A.2, 453A.23, 453A.47A Footnotes
2003 amendments to subsection 2 apply to violations of §453A.2,
subsection 1, by retailers or retailers' employees which are pending
on April 11, 2003, and for which a penalty has not been assessed
under §453A.22, subsection 2, Code 2003; 2003 Acts, ch 26, §5, 7
453A.23 RETAILER'S PERMIT FOR RAILWAY CAR.
1. Subject to this division, a retailer's permit may be issued by
the department to any dining car company, sleeping car company,
railroad or railway company. The permit shall authorize the holder
to keep for sale, and sell, cigarettes at retail on any dining car,
sleeping car, or passenger car operated by the applicant in, through,
or across the state of Iowa, subject to all of the restrictions
imposed upon retailers under this division. The application for the
permit shall be in the form and contain the information required by
the director. Each permit is good throughout the state. Only one
permit is required for all cars operated in this state by the
applicant, but a duplicate of the permit shall be posted in each car
in which cigarettes are sold and no further permit shall be required
or tax levied for the privilege of selling cigarettes in the cars.
No cigarettes shall be sold in the cars without having affixed
thereto stamps evidencing the payment of the tax as provided in this
division.
2. As a condition precedent to the issuing of a retailer's permit
for railway car, the applicant shall file with the department a bond
in favor of the state for the benefit of all parties interested in
the amount of five hundred dollars conditioned upon the payment of
all taxes, fines and penalties and costs in this division.
3. The annual fee for a retailer's permit for railway cars shall
be twenty-five dollars and two dollars for each duplicate thereof,
which fee shall be paid to the department. The department shall
issue duplicates of such permits from time to time as applied for by
such companies.
4. The provisions of subsections 1 and 5 of section 453A.22 shall
apply to the revocation of such permit and the issuance of a new one.
Section History: Early Form
[C39, § 1556.18; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.23] Section History: Recent Form
C93, § 453A.23
453A.24 CARRIER TO PERMIT ACCESS TO RECORDS.
1. Every common carrier or person in this state having custody of
books or records showing the transportation of cigarettes both
interstate and intrastate shall give and allow the department free
access to those books and records.
2. The director may require by rule that common carriers or the
appropriate persons provide monthly reports to the department
detailing all information the department deems necessary on shipments
into and out of Iowa of cigarettes and tobacco products as set forth
in this division I and division II of this chapter. The director may
require by rule that the reports be filed by electronic transmission.
Section History: Early Form
[C39, § 1556.19; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.24] Section History: Recent Form
C93, § 453A.24
2007 Acts, ch 186, §39
453A.25 ADMINISTRATION.
1. The director shall administer the provisions of this chapter,
and shall collect, supervise, and enforce the collection of all taxes
and penalties that may be due under the provisions of this chapter.
2. The director may make and publish rules, not inconsistent with
this chapter, necessary and advisable for its detailed
administration, enforce the provisions thereof, and collect the taxes
and fees herein imposed. The director may promulgate rules hereunder
providing for the refund on stamps which by reason of damage become
unfit for sale or use.
3. The director may designate employees to administer and enforce
the provisions of this chapter, including the collection of all taxes
provided for in this chapter. In the enforcement, the director may
request aid from the attorney general, the special agents of the
state, any county attorney, or any peace officer. The director may
appoint clerks and additional help as may be needed to administer
this chapter. Section History: Early Form
[C24, 27, 31, 35, § 1576; C39, § 1556.20; C46, 50, 54, 58, 62,
66, 71, 73, 75, 77, 79, 81, § 98.25] Section History: Recent Form
C93, § 453A.25
2007 Acts, ch 186, §40
453A.26 LIENS AND ACTIONS.
All of the provisions for the lien of the tax, its collection, and
all actions as provided in the uniform sales and use tax
administration Act, chapter 423, shall apply to the tax imposed by
this chapter, except that where the sales tax and the cigarette tax
may become conflicting liens, they shall be of equal priority. Section History: Early Form
[C24, 27, 31, 35, § 1565; C39, § 1556.21; C46, 50, 54, 58, 62,
66, 71, 73, 75, 77, 79, 81, § 98.26] Section History: Recent Form
C93, § 453A.26
2005 Acts, ch 3, §74
453A.27 VENUE OF ACTIONS TO COLLECT.
Venue of any civil proceedings filed under the provisions of this
chapter to collect the taxes, fees, and penalties levied herein shall
be in a court of competent jurisdiction in Polk county, or in any
court having jurisdiction. Section History: Early Form
[C39, § 1556.22; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.27] Section History: Recent Form
C93, § 453A.27
453A.28 ASSESSMENT OF TAX BY DEPARTMENT -- INTEREST
-- PENALTY.
If after any audit, examination of records, or other investigation
the department finds that any person has sold cigarettes without
stamps affixed or that any person responsible for paying the tax has
not done so as required by this division, the department shall fix
and determine the amount of tax due, and shall assess the tax against
the person, together with a penalty as provided in section 421.27.
The taxpayer shall pay interest on the tax or additional tax at the
rate determined under section 421.7 counting each fraction of a month
as an entire month, computed from the date the tax was due. If any
person fails to furnish evidence satisfactory to the director showing
purchases of sufficient stamps to stamp unstamped cigarettes
purchased by the person, the presumption shall be that the cigarettes
were sold without the proper stamps affixed. Within three years
after the report is filed or within three years after the report
became due, whichever is later, the department shall examine the
report and determine the correct amount of tax. The period for
examination and determination of the correct amount of tax is
unlimited in the case of a false or fraudulent report made with the
intent to evade tax, or in the case of a failure to file a report, or
if a person purchases or is in possession of unstamped cigarettes.
The three-year period of limitation may be extended by a taxpayer
by signing a waiver agreement form to be provided by the department.
The agreement must stipulate the period of extension and the tax
period to which the extension applies. The agreement must also
provide that a claim for refund may be filed by the taxpayer at any
time during the period of extension. Section History: Early Form
[C24, 27, 31, 35, § 1568; C39, § 1556.23; C46, 50, 54, 58, 62,
66, 71, 73, 75, 77, 79, 81, § 98.28] Section History: Recent Form
84 Acts, ch 1173, § 1; 86 Acts, ch 1007, § 7; 90 Acts, ch 1172, §
1
C93, § 453A.28
99 Acts, ch 151, §79, 89; 2004 Acts, ch 1073, §39
Referred to in § 453A.29, 453A.31
453A.29 NOTICE AND APPEAL.
The department shall notify any person assessed pursuant to
section 453A.28 by sending a written notice of the determination by
mail to the principal place of business of the person as shown on the
person's application for permit, and if an application was not filed
by the person, to the person's last known address. A determination
by the department of the amount of tax, penalty, and interest due, or
the amount of refund for excess tax paid, is final, unless the person
aggrieved by the determination appeals to the director for a revision
of the determination within sixty days from the date of the notice of
determination of tax, penalty, and interest or refund owing or unless
the taxpayer contests the determination by paying the tax, interest,
and penalty and timely filing a claim for refund. The director shall
grant a hearing and upon the hearing, the director shall determine
the correct tax, penalty, and interest or refund due and notify the
appellant of the decision by mail. Judicial review of action of the
director may be sought in accordance with the Iowa administrative
procedure Act, chapter 17A, and section 422.29. Section History: Early Form
[C39, § 1556.24; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.29] Section History: Recent Form
86 Acts, ch 1007, § 8; 86 Acts, ch 1241, § 3, 4
C93, § 453A.29
94 Acts, ch 1133, §13, 16; 99 Acts, ch 151, §80, 89; 2003 Acts, ch
44, §114
Referred to in § 421.10
453A.30 ASSESSMENT OF COST OF AUDIT.
The department may employ auditors or other persons to audit and
examine the books and records of any permit holder or other person
dealing in cigarettes to ascertain whether the permit holder or other
person has paid the amount of the taxes required to be paid by the
holder or person or filed all reports containing all required
information as specified by the department under the provisions of
this chapter. If such taxes have not been paid or such reports not
filed, as required, the department shall assess against the permit
holder or other person, as additional penalty, the reasonable
expenses and costs of the investigation and audit. Section History: Early Form
[C39, § 1556.25; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.30] Section History: Recent Form
C93, § 453A.30
2007 Acts, ch 186, §41
453A.31 CIVIL PENALTY FOR CERTAIN VIOLATIONS.
If a permit holder fails to keep any of the records required to be
kept by the provisions of this division, or sells cigarettes upon
which a tax is required to be paid by this division without at the
time having a valid permit, or if a distributor, wholesaler,
manufacturer, or distributing agent fails to make reports to the
department as required, or makes a false or incomplete report to the
department, or if a distributing agent stores unstamped cigarettes in
the state or distributes or delivers unstamped cigarettes within this
state without at the time of storage or delivery having a valid
permit, or if a person purchases or is in possession of unstamped
cigarettes, or if a person affected by this division fails or refuses
to abide by any of its provisions or the rules adopted under this
division, the person is civilly liable to the state for a penalty as
follows:
1. For possession of unstamped cigarettes:
a. A two hundred dollar penalty for the first violation if a
person is in possession of more than forty but not more than four
hundred unstamped cigarettes.
b. A five hundred dollar penalty for the first violation if a
person is in possession of more than four hundred but not more than
two thousand unstamped cigarettes.
c. A twenty-five dollar per pack penalty for the first
violation if a person is in possession of more than two thousand
unstamped cigarettes.
d. For a second violation within three years of the first
violation, the penalty is four hundred dollars if a person is in
possession of more than forty but not more than four hundred
unstamped cigarettes; one thousand dollars if a person is in
possession of more than four hundred but not more than two thousand
unstamped cigarettes; and thirty-five dollars per pack if a person is
in possession of more than two thousand unstamped cigarettes.
e. For a third or subsequent violation within three years of
the first violation, the penalty is six hundred dollars if a person
is in possession of more than forty but not more than four hundred
unstamped cigarettes; one thousand five hundred dollars if a person
is in possession of more than four hundred but not more than two
thousand unstamped cigarettes; and forty-five dollars per pack if a
person is in possession of more than two thousand unstamped
cigarettes.
2. For all other violations of this section:
a. A two hundred dollar penalty for the first violation.
b. A five hundred dollar penalty for a second violation
within three years of the first violation.
c. A thousand dollar penalty for a third or subsequent
violation within three years of the first violation.
The penalty imposed under this section shall be assessed and
collected pursuant to section 453A.28 and is in addition to the tax,
penalty, and interest imposed in that section.
If a cigarette distributor fails to file a return or to report
timely, stamps shall not be provided to that cigarette distributor
until all returns and reports are filed properly and all tax,
penalties, and interest are paid. Section History: Early Form
[C24, 27, 31, 35, § 1572; C39, § 1556.26; C46, 50, 54, 58, 62,
66, 71, 73, 75, 77, 79, 81, § 98.31] Section History: Recent Form
C93, § 453A.31
99 Acts, ch 151, §81, 89; 2004 Acts, ch 1073, §40, 41; 2007 Acts,
ch 186, §42
Referred to in § 453A.11, 453A.46, 453D.5
453A.32 SEIZURE AND FORFEITURE -- PROCEDURE.
1. All cigarettes on which taxes are imposed or required to be
imposed by this division, which are found in the possession or
custody, or within the control of any person, for the purpose of
being sold, distributed, or removed by the person in violation of
this division, and all cigarettes which are removed, stored,
transported, deposited, or concealed in any place without the proper
taxes paid, and any automobile, truck, boat, conveyance, or other
vehicle whatsoever, used in the removal, storage, deposit,
concealment, or transportation of cigarettes for the purpose of
avoiding the payment of the proper tax, and all equipment or other
tangible personal property incident to and used for the purpose of
avoiding the payment of the proper tax, found in the place, building,
or vehicle where cigarettes are found, and all counterfeit cigarettes
may be seized by the department, with or without process and shall be
from the time of the seizure forfeited to the state of Iowa. A
proceeding in the nature of a proceeding in rem shall be filed in a
court of competent jurisdiction in the county of seizure to maintain
the seizure and declare and perfect the forfeiture. All cigarettes,
counterfeit cigarettes, vehicles, and property seized, remaining in
the possession or custody of the department, sheriff or other officer
for forfeiture or other disposition as provided by law, are not
subject to replevin.
2. The department, when taking the seizure aforesaid, shall
immediately make a written report thereof showing the name of the
agent or representative making the seizure, the place and person
where and from whom such property was seized and an inventory of same
and appraisement thereof at the reasonable value of the article
seized, which report shall be prepared in duplicate, signed by the
agent or representative so seizing, the original of which shall be
given to the person from whom said property is taken, and a duplicate
copy of which shall be filed in the office of the director and shall
be open to public inspection.
3. The county attorney of the county of seizure, shall, at the
request of the director, file in the county and court aforesaid
forfeiture proceeding in the name of the state as plaintiff, and in
the name of the owner or person in possession as defendant, if known,
and if unknown, then in the name of said property seized and sought
to be forfeited. Upon the filing of said proceeding, the clerk of
said court shall issue notice to the owner or person in possession of
such property to appear before such court upon the date named
therein, which shall not be less than two days from service of such
notice, to show cause why the forfeiture aforesaid should not be
declared, which notice shall be served by the sheriff of said county.
In the event the defendant in said proceeding is a nonresident of the
state or the defendant's residence is unknown, or in the event the
name of such defendant is unknown, upon affidavit by the director to
this effect, notice shall be given as ordered by the court.
4. In the event final judgment is rendered in the forfeiture
proceedings aforesaid, maintaining the seizure, and declaring and
perfecting the forfeiture of said seized property, the court shall
order and decree the sale of the seized property, other than the
counterfeit cigarettes, to the highest bidder, by the sheriff at
public auction in the county of seizure after notice is given in the
manner provided in the case of the sale of personal property under
execution, and the proceeds of such sale, less expense of seizure and
court costs, shall be paid into the state treasury. Counterfeit
cigarettes shall be destroyed or disposed of in a manner determined
by the director.
5. In the event the cigarettes seized and sought to be sold upon
forfeiture are unstamped, the cigarettes shall be sold by the
director or the director's designee to the highest bidder among the
permitted distributors in this state after written notice has been
mailed to all distributors. If there is no bidder, or in the opinion
of the director the quantity of cigarettes to be sold is insufficient
or for any other reason such disposition of the cigarettes is
impractical, the cigarettes shall be destroyed or disposed of in a
manner as determined by the director. The proceeds from the sales
shall be paid into the state treasury.
6. The provisions of this section applying to cigarettes shall
also apply to tobacco products taxed under division II of this
chapter. Section History: Early Form
[C39, § 1556.27; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.32] Section History: Recent Form
C93, § 453A.32
2004 Acts, ch 1073, §42; 2007 Acts, ch 186, §43
Referred to in § 331.653, 331.756(20), 453A.36, 453D.6
Counterfeit cigarettes, see §453A.36(10)
453A.33 SEIZURE NOT TO AFFECT CRIMINAL PROSECUTION.
The seizure, forfeiture, and sale of cigarettes, tobacco products,
and other property under the terms and conditions hereinabove set
out, shall not constitute any defense to the person owning or having
control or possession of the property from criminal prosecution for
any act or omission made or offense committed under this chapter or
from liability to pay penalties provided by this chapter. Section History: Early Form
[C39, § 1556.28; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.33] Section History: Recent Form
C93, § 453A.33
453A.34 RESTRICTIONS ON INJUNCTION.
Any person who shall invoke the power and remedies of injunction
against the department to restrain or enjoin the department from
enforcement of the collection of the tax levied herein upon any
grounds for which an injunction may be issued shall file such
proceedings in a court of competent jurisdiction in Polk county, and
venue for such injunction is hereby declared to be in Polk county.
Section History: Early Form
[C39, § 1556.29; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.34] Section History: Recent Form
C93, § 453A.34
453A.35 TAX AND FEES PAID TO GENERAL FUND -- STANDING
APPROPRIATION TO HEALTH CARE TRUST FUND.
1. The proceeds derived from the sale of stamps and the payment
of taxes, fees, and penalties provided for under this chapter, and
the permit fees received from all permits issued by the department,
shall be credited to the general fund of the state. However,
beginning July 1, 2007, of the revenues generated from the tax on
cigarettes pursuant to section 453A.6, subsection 1, and from the tax
on tobacco products as specified in section 453A.43, subsections 1,
2, 3, and 4, and credited to the general fund of the state under this
subsection, there is appropriated, annually, to the health care trust
fund created in section 453A.35A, the first one hundred twenty-seven
million six hundred thousand dollars.
2. All permit fees provided for in this chapter and collected by
cities in the issuance of permits granted by the cities shall be paid
to the treasurer of the city where the permit is effective, or to
another city officer as designated by the council, and credited to
the general fund of the city. Permit fees so collected by counties
shall be paid to the county treasurer. Section History: Early Form
[C24, 27, 31, 35, § 1569; C39, § 1556.30; C46, 50, 54, 58, 62,
66, 71, 73, 75, 77, 79, 81, § 98.35] Section History: Recent Form
83 Acts, ch 123, § 51, 209
C93, § 453A.35
2007 Acts, ch 17, §5, 12
Referred to in § 331.427, 453A.35A
453A.35A HEALTH CARE TRUST FUND.
1. A health care trust fund is created in the office of the
treasurer of state. The fund consists of the revenues generated from
the tax on cigarettes pursuant to section 453A.6, subsection 1, and
from the tax on tobacco products as specified in section 453A.43,
subsections 1, 2, 3, and 4, that are credited to the general fund of
the state and appropriated to the health care trust fund, annually,
pursuant to section 453A.35. Moneys in the fund shall be separate
from the general fund of the state and shall not be considered part
of the general fund of the state. However, the fund shall be
considered a special account for the purposes of section 8.53
relating to generally accepted accounting principles. Moneys in the
fund shall be used only as specified in this section and shall be
appropriated only for the uses specified. Moneys in the fund are not
subject to section 8.33 and shall not be transferred, used,
obligated, appropriated, or otherwise encumbered, except as provided
in this section. Notwithstanding section 12C.7, subsection 2,
interest or earnings on moneys deposited in the fund shall be
credited to the fund.
2. Moneys in the fund shall be used only for purposes related to
health care, substance abuse treatment and prevention, and tobacco
use prevention, cessation, and control. Section History: Recent Form
2007 Acts, ch 17, §6, 12
Referred to in § 453A.35
453A.36 UNLAWFUL ACTS.
1. Except as otherwise provided in this division, it is unlawful
for any person to have in the person's possession for sale,
distribution, or use, or for any other purpose, in excess of forty
cigarettes, or to sell, distribute, use, or present as a gift or
prize cigarettes upon which a tax is required to be paid by this
division, without having affixed to each individual package of
cigarettes, the proper stamp evidencing the payment of the tax and
the absence of the stamp on the individual package of cigarettes is
notice to all persons that the tax has not been paid and is prima
facie evidence of the nonpayment of the tax.
2. No person, other than a common carrier and a distributor's
truck bearing the distributor's name and permit number in plain view
on the outside of such truck, shall transport within this state
cigarettes upon which a tax is required to be paid, without having
stamps affixed to each individual package of said cigarettes; and no
person shall fail or refuse, upon demand of agent of the department,
or any peace officer to stop any vehicle transporting cigarettes for
a full and complete inspection of the cargo carried.
3. No person shall use, sell, offer for sale, or possess for the
purpose of use or sale, within this state, any previously used stamp
or stamps, or attach any such previously used stamps to an individual
package of cigarettes, nor shall any person purchase stamps from any
person other than the department or sell stamps purchased from the
department.
4. No person shall knowingly use, consume, or smoke, within this
state, cigarettes upon which a tax is required to be paid, without
said tax having been paid.
5. No person, unless the person be the holder of a permit, or the
holder's representative, shall solicit the sale of cigarettes,
provided that this section shall not prevent solicitation by a
nonpermit holder for the sale of cigarettes to any state permit
holder.
6. Any sales of cigarettes or tobacco products made through a
cigarette vending machine are subject to rules and penalties relative
to retail sales of cigarettes and tobacco products provided for in
this chapter. Cigarettes shall not be sold through any cigarette
vending machine unless the cigarettes have been properly stamped or
metered as provided by this division, and in case of violation of
this provision, the permit of the dealer authorizing retail sales of
cigarettes shall be revoked. Payment of the permit fee as provided
in section 453A.13 authorizes a cigarette vendor to sell cigarettes
or tobacco products through vending machines. However, cigarettes or
tobacco products shall not be sold through a vending machine unless
the vending machine is located in a place where the retailer ensures
that no person younger than eighteen years of age is present or
permitted to enter at any time. Cigarettes or tobacco products shall
not be sold through any cigarette vending machine if such products
are placed together with any nontobacco product, other than matches,
in the cigarette vending machine. This section does not require a
retail permit holder to buy a cigarette vendor's permit if the retail
permit holder is in fact the owner of the cigarette vending machines
and the machines are operated in the location described in the retail
permit.
7. It shall be unlawful for a person other than a holder of a
retail permit to sell cigarettes at retail. No state permit holder
shall sell or distribute cigarettes at wholesale to any person in the
state of Iowa who does not hold a permit authorizing the retail sale
of cigarettes or who does not hold a state permit as a manufacturer,
distributing agent, wholesaler, or distributor.
8. It shall be unlawful for a holder of a retail permit to sell
or distribute any cigarettes or tobacco products, including but not
limited to a single or loose cigarette, that are not contained within
a sealed carton, pack, or package as provided by the manufacturer,
which carton, pack, or package bears the health warning that is
required by federal law.
9. It is unlawful for a person to ship or import into the state,
or to offer for sale, sell, distribute, transport, or possess within
this state, cigarettes or tobacco products previously exported from
or manufactured for use outside the United States.
10. a. It is unlawful for a person to ship or import into
this state or to offer for sale, sell, distribute, transport, or
possess counterfeit cigarettes, knowing such cigarettes are
counterfeit cigarettes or having reasonable cause to believe that
such cigarettes are counterfeit cigarettes.
b. For purposes of this subsection and section 453A.32,
"counterfeit cigarettes" means cigarettes, packages of
cigarettes, cartons of cigarettes or other containers of cigarettes
with a label, trademark, service mark, trade name, device, design, or
word adopted or used by a cigarette manufacturer to identify its
product that is false or used without authority of the cigarette
manufacturer.
11. Violation of this section by the holder of a distributor's,
wholesaler's or manufacturer's permit shall be grounds for the
revocation of such permit. Section History: Early Form
[C24, § 1573; C27, 31, 35, § 1573, 1575-a2; C39, § 1556.31;
C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 98.36] Section History: Recent Form
91 Acts, ch 240, §6
C93, § 453A.36
97 Acts, ch 136, §1; 2000 Acts, ch 1104, §1, 2; 2004 Acts, ch
1073, §43; 2007 Acts, ch 186, §44, 45
Referred to in § 453A.22, 453A.36A
453A.36A SELF-SERVICE SALES PROHIBITED.
1. Beginning January 1, 1999, except as provided in section
453A.36, subsection 6, a retailer shall not sell or offer for sale
cigarettes or tobacco products, in a quantity of less than a carton,
through the use of a self-service display.
2. Violation of this section by a holder of a retail permit is
grounds for revocation of such permit. Section History: Recent Form
98 Acts, ch 1129, §3
Legislative intent to restrict access of minors to cigarettes and
tobacco products; 98 Acts, ch 1129, § 1
453A.37 VIOLATION AS FRAUDULENT PRACTICE.
A person who violates a provision of this division is guilty of a
fraudulent practice unless otherwise provided in this division. Section History: Early Form
[C39, § 1556.32; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 98.37] Section History: Recent Form
89 Acts, ch 251, §2
C93, § 453A.37
453A.38 COUNTERFEITING AND PREVIOUSLY USED STAMPS.
Any person who shall print, engrave, make, issue, sell, or
circulate, or shall possess or have in the person's possession with
intent to use, sell, circulate, or pass, any counterfeit stamp or
previously used stamp, or who shall use, or consent to the use of,
any counterfeit stamp or previously used stamp in connection with the
sale, or offering for sale, of any cigarettes, or who shall place, or
cause to be placed, on any individual package of cigarettes, any
counterfeit stamp or previously used stamp, shall be guilty of an
aggravated misdemeanor. Section History: Early Form
[C24, 27, 31, 35, § 1573; C39, § 1556.33; C46, 50, 54, 58, 62,
66, 71, 73, 75, 77, 79, 81, § 98.38] Section History: Recent Form
C93, § 453A.38
453A.39 TOBACCO PRODUCT AND CIGARETTE SAMPLES --
RESTRICTIONS -- ADMINISTRATION.
1. A manufacturer, distributor, wholesaler, retailer, or
distributing agent, or agent thereof, shall not give away cigarettes
or tobacco products at any time in connection with the
manufacturer's, distributor's, wholesaler's, retailer's, or
distributing agent's business or for promotion of the business or
product, except as provided in subsection 2.
2. a. All cigarette samples shall be shipped only to a
distributor that has a permit to stamp cigarettes or little cigars
with Iowa tax. All cigarette samples must have a cigarette stamp.
The manufacturer shipping samples under this section shall send an
affidavit to the director stating the shipment information, including
the date shipped, quantity, and to whom the samples were shipped.
The distributor receiving the shipment shall send an affidavit to the
director stating the shipment information, including the date
shipped, quantity, and from whom the samples were shipped. These
affidavits shall be duly notarized and submitted to the director at
the time of shipment and receipt of the samples. The distributor
shall pay the tax on samples by separate remittance along with the
affidavit.
b. A manufacturer, distributor, wholesaler, retailer, or
distributing agent or agent thereof shall not give away any
cigarettes or tobacco products to any person under eighteen years of
age, or within five hundred feet of any playground, school, high
school, or other facility when such facility is being used primarily
by persons under age eighteen for recreational, educational, or other
purposes.
c. Proof of age shall be required if a reasonable person
could conclude on the basis of outward appearance that a prospective
recipient of a sample may be under eighteen years of age. Section History: Recent Form
2004 Acts, ch 1073, §44
See also §142A.6
453A.40 INVENTORY TAX.
1. All persons required to obtain a permit or to be licensed
under section 453A.13 or section 453A.44 having in their possession
and held for resale on the effective date of an increase in the tax
rate cigarettes, little cigars, or tobacco products upon which the
tax under section 453A.6 or 453A.43 has been paid, unused cigarette
tax stamps which have been paid for under section 453A.8, unused
metered imprints which have been paid for under section 453A.12, or
tobacco products for which the tax has not been paid under section
453A.46 shall be subject to an inventory tax on the items as provided
in this section.
2. Persons subject to the inventory tax imposed under this
section shall take an inventory as of the close of the business day
next preceding the effective date of the increased tax rate of those
items subject to the inventory tax for the purpose of determining the
tax due. These persons shall report the tax on forms provided by the
department of revenue and remit the tax due within thirty days of the
prescribed inventory date. The department of revenue shall adopt
rules as are necessary to carry out this section.
3. The rate of the inventory tax on each item subject to the tax
as specified in subsection 1 is equal to the difference between the
amount paid on each item under section 453A.6, 453A.8, 453A.12, or
453A.43 prior to the tax increase and the amount that is to be paid
on each similar item under section 453A.6, 453A.8, 453A.12, or
453A.43 after the tax increase except that in computing the rate of
the inventory tax any discount allowed or allowable under section
453A.8 shall not be considered. Section History: Recent Form
88 Acts, ch 1005, § 2
C89, § 98.40
C93, § 453A.40
2003 Acts, ch 145, §286; 2007 Acts, ch 17, §7, 11, 12
Referred to in § 453A.43 Footnotes
Persons required to obtain a permit or license as specified in
this section shall not be subject to an inventory tax on the items as
provided in this section as a result of the tax increases contained
in 2007 Acts, ch 17; 2007 Acts, ch 17, §11
453A.41 Reserved.
453A.42 DEFINITIONS.
When used in this division, unless the context clearly indicates
otherwise, the following terms shall have the meanings, respectively,
ascribed to them in this section:
1. "Business" means any trade, occupation, activity, or
enterprise engaged in for the purpose of selling or distributing
tobacco products in this state.
2. "Consumer" means any person who has title to or possession
of tobacco products in storage, for use or other consumption in this
state.
3. "Director" means the director of the department of
revenue.
4. "Distributor" means any and each of the following:
a. Any person engaged in the business of selling tobacco
products in this state who brings, or causes to be brought, into this
state from without the state any tobacco products for sale;
b. Any person who makes, manufactures, or fabricates tobacco
products in this state for sale in this state;
c. Any person engaged in the business of selling tobacco
products without this state who ships or transports tobacco products
to retailers in this state, to be sold by those retailers.
5. "Little cigar" means any roll for smoking which:
a. Is made wholly or in part of tobacco, irrespective of size
or shape and irrespective of tobacco being flavored, adulterated, or
mixed with any other ingredient;
b. Is not a cigarette as defined in section 453A.1,
subsection 3; and
c. Either weighs not more than three pounds per thousand,
irrespective of retail price, or weighs more than three pounds per
thousand and has a retail price of not more than two and one-half
cents per little cigar. For purposes of this subsection, the retail
price is the ordinary retail price in this state, not including
retail sales tax, use tax, or the tax on little cigars imposed by
section 453A.43.
6. "Manufacturer" means a person who manufactures and sells
tobacco products.
7. "Person" means any individual, firm, association,
partnership, joint stock company, joint adventure, corporation,
trustee, agency, or receiver, or any legal representative of any of
the foregoing.
8. "Place of business" means any place where tobacco products
are sold or where tobacco products are manufactured, stored, or kept
for the purpose of sale or consumption, including any vessel,
vehicle, airplane, train, or vending machine.
9. "Retail outlet" means each place of business from which
tobacco products are sold to consumers.
10. "Retailer" means any person engaged in the business of
selling tobacco products to ultimate consumers.
11. "Sale" means any transfer, exchange, or barter, in any
manner or by any means whatsoever, for a consideration, and includes
and means all sales made by any person. It includes a gift by a
person engaged in the business of selling tobacco products, for
advertising, as a means of evading the provisions of this division,
or for any other purposes whatsoever.
12. "Snuff" means any finely cut, ground, or powdered tobacco
that is not intended to be smoked.
13. "Storage" means any keeping or retention of tobacco
products for use or consumption in this state.
14. "Subjobber" means any person, other than a manufacturer
or distributor, who buys tobacco products from a distributor and
sells them to persons other than the ultimate consumers.
15. "Tobacco products" means cigars; little cigars as defined
herein; cheroots; stogies; periques; granulated, plug cut, crimp cut,
ready rubbed, and other smoking tobacco; snuff; cavendish; plug and
twist tobacco; fine-cut and other chewing tobaccos; shorts; refuse
scraps, clippings, cuttings and sweepings of tobacco, and other kinds
and forms of tobacco, prepared in such manner as to be suitable for
chewing or smoking in a pipe or otherwise, or both for chewing and
smoking; but shall not include cigarettes as defined in section
453A.1, subsection 3.
16. "Use" means the exercise of any right or power incidental
to the ownership of tobacco products.
17. "Wholesale sales price" means the established price for
which a manufacturer sells a tobacco product to a distributor,
exclusive of any discount or other reduction. Section History: Early Form
[C71, 73, 75, 77, 79, 81, § 98.42] Section History: Recent Form
86 Acts, ch 1245, § 402
C93, § 453A.42
2002 Acts, ch 1119, §59; 2003 Acts, ch 145, §286; 2007 Acts, ch
17, §8, 9, 12
Referred to in § 453A.1, 453A.3, 453A.5, 453A.22, 453A.43
453A.43 TAX ON TOBACCO PRODUCTS.
1. a. A tax is imposed upon all tobacco products in this
state and upon any person engaged in business as a distributor of
tobacco products, at the rate of twenty-two percent of the wholesale
sales price of the tobacco products, except little cigars and snuff
as defined in section 453A.42.
b. In addition to the tax imposed under paragraph "a", a
tax is imposed upon all tobacco products in this state and upon any
person engaged in business as a distributor of tobacco products, at
the rate of twenty-eight percent of the wholesale sales price of the
tobacco products, except little cigars and snuff as defined in
section 453A.42.
c. Notwithstanding the rate of tax imposed pursuant to
paragraphs "a" and "b", if the tobacco product is a cigar,
the total amount of the tax imposed pursuant to paragraphs "a"
and "b" combined shall not exceed fifty cents per cigar.
d. Little cigars shall be subject to the same rate of tax
imposed upon cigarettes in section 453A.6, payable at the time and in
the manner provided in section 453A.6; and stamps shall be affixed as
provided in division I of this chapter. Snuff shall be subject to
the tax as provided in subsections 3 and 4.
e. The taxes on tobacco products, excluding little cigars and
snuff, shall be imposed at the time the distributor does any of the
following:
(1) Brings, or causes to be brought, into this state from outside
the state tobacco products for sale.
(2) Makes, manufactures, or fabricates tobacco products in this
state for sale in this state.
(3) Ships or transports tobacco products to retailers in this
state, to be sold by those retailers.
2. a. A tax is imposed upon the use or storage by consumers
of tobacco products in this state, and upon the consumers, at the
rate of twenty-two percent of the cost of the tobacco products.
b. In addition to the tax imposed in paragraph "a", a tax
is imposed upon the use or storage by consumers of tobacco products
in this state, and upon the consumers, at a rate of twenty-eight
percent of the cost of the tobacco products.
c. Notwithstanding the rate of tax imposed pursuant to
paragraphs "a" and "b", if the tobacco product is a cigar,
the total amount of the tax imposed pursuant to paragraphs "a"
and "b" combined shall not exceed fifty cents per cigar.
d. The taxes imposed by this subsection shall not apply if
the taxes imposed by subsection 1 on the tobacco products have been
paid.
e. The taxes imposed under this subsection shall not apply to
the use or storage of tobacco products in quantities of:
(1) Less than twenty-five cigars.
(2) Less than one pound smoking or chewing tobacco or other
tobacco products not specifically mentioned herein, in the possession
of any one consumer.
3. A tax is imposed upon all snuff in this state and upon any
person engaged in business as a distributor of snuff at the rate of
one dollar and nineteen cents per ounce, with a proportionate tax at
the same rate on all fractional parts of an ounce of snuff. The tax
shall be computed based on the net weight listed by the manufacturer.
The tax on snuff shall be imposed at the time the distributor does
any of the following:
a. Brings or causes to be brought into this state from
outside the state, snuff for sale.
b. Makes, manufactures, or fabricates snuff in this state for
sale in this state.
c. Ships or transports snuff to retailers in this state, to
be sold by those retailers.
4. a. A tax is imposed upon the use or storage by consumers
of snuff in this state, and upon the consumers, at the rate of one
dollar and nineteen cents per ounce with a proportionate tax at the
same rate on all fractional parts of an ounce of snuff. The tax
shall be computed based on the net weight as listed by the
manufacturer.
b. The tax imposed by this subsection shall not apply if the
tax imposed by subsection 3 on snuff has been paid.
c. The tax shall not apply to the use or storage of snuff in
quantities of less than ten ounces.
5. Any tobacco product with respect to which a tax has once been
imposed under this division shall not again be subject to tax under
this division, except as provided in section 453A.40.
6. The tax imposed by this section shall not apply with respect
to any tobacco product which under the Constitution and laws of the
United States may not be made the subject of taxation by this state.
7. The tax imposed by this section shall be in addition to all
other occupation or privilege taxes or license fees now or hereafter
imposed by any city or county.
8. All excise taxes collected under this chapter by a distributor
or any individual are deemed to be held in trust for the state of
Iowa. Section History: Early Form
[C71, 73, 75, 77, 79, 81, § 98.43] Section History: Recent Form
85 Acts, ch 32, § 2; 88 Acts, ch 1005, § 3; 91 Acts, ch 267, §511,
512
C93, § 453A.43
2004 Acts, ch 1073, §45; 2007 Acts, ch 17, §10, 12; 2007 Acts, ch
186, §46, 55
Referred to in § 453A.35, 453A.35A, 453A.40, 453A.42, 453A.46,
453A.47, 453A.48
Inventory tax, § 453A.40 Footnotes
Claims for refunds of taxes which result from amendments to
subsections 1 and 2 by 2007 Acts, ch 186, §46, relating to the
limitation on taxes imposed on cigars occurring between March 15,
2007, and May 24, 2007, to be made by October 1, 2007; interest on
refunds not allowed; retroactive applicability to March 15, 2007;
2007 Acts, ch 186, §54, 55
453A.44 LICENSES -- DISTRIBUTORS, SUBJOBBERS.
1. No person shall engage in the business of a distributor or
subjobber of tobacco products at any place of business without first
having received a license from the director to engage in that
business at that place of business.
2. Every application for such a license shall be made on a form
prescribed by the director and shall state the name and address of
the applicant; if the applicant is a firm, partnership, or
association, the name and address of each of its members; if the
applicant is a corporation, the name and address of each of its
officers; the address of its principal place of business; the place
where the business to be licensed is to be conducted; and such other
information as the director may require for the purpose of the
administration of this division.
3. A person without this state who ships or transports tobacco
products to retailers in this state, to be sold by those retailers,
may make application for a license as a distributor, be granted a
license by the director, and thereafter be subject to all the
provisions of this division and entitled to act as a licensed
distributor.
4. Each application for a distributor's license shall be
accompanied by a fee of one hundred dollars, except that an applicant
holding a permit pursuant to division I of this chapter shall not be
required to pay an additional fee. The application shall be
accompanied by a corporate surety bond issued by a surety licensed to
do business in this state, in the sum of one thousand dollars,
conditioned upon the true and faithful compliance by the distributor
with all the provisions of this division and the payment when due of
all taxes, penalties and accrued interest arising in the ordinary
course of business or by reason of any delinquent money which may be
due the state of Iowa. This bond shall be in a form to be fixed by
the director and approved by the attorney general. Whenever it is
the opinion of the director that the bond given by a licensee is
inadequate in amount to fully protect the state, the director shall
require either an increase in the amount of said bond or additional
bond, in such amount as the director deems sufficient. Any bond
required by this division, or a reissue thereof, or a substitute
therefor, shall be kept in full force and effect during the entire
period covered by the license.
A separate application for license shall be made for each place of
business where a distributor proposes to engage in business as such
under this division.
5. Each application for a subjobber's license shall be
accompanied by a fee of ten dollars, except that no applicant holding
a permit pursuant to division I of this chapter shall be required to
pay an additional fee.
6. A distributor or subjobber applying for a license between
January 1 and June 30 of any year shall be required to pay only
one-half of the license fee provided for herein.
7. The director, upon receipt of the application (and bond, in
the case of the distributor) in proper form, and payment of the
license fee required by subsection 4 or subsection 5, shall unless
otherwise provided by this division, issue the applicant a license in
form as prescribed by the director, which license shall permit the
applicant to whom it is issued to engage in business as a distributor
or subjobber at the place of business shown in the application. The
director shall assign a permit number to each person licensed as a
distributor at the time of issuance of the person's first license,
which shall be inscribed upon all licenses issued to that
distributor.
8. Each license shall expire on June 30 following its date of
issue unless sooner revoked by the director or unless the business
with respect to which the license was issued is transferred. In
either case the holder of the license shall immediately surrender it
to the director.
9. No license shall be transferable to any other person.
10. The director may revoke, cancel, or suspend the license or
licenses of any distributor or subjobber for violation of any of the
provisions of this division, or any other act applicable to the sale
of tobacco products, or any rule or regulations promulgated by the
director in furtherance of this division. No license shall be
revoked, canceled, or suspended except after notice and a hearing by
the director as provided in section 453A.48.
11. No license shall be issued under this division to any person
within one year of the date of final determination of a revocation of
any previous license held by the person.
12. When the surety upon any bond issued pursuant to the
provisions of this division shall have fulfilled the conditions of
such bond and compensated the state for any loss occasioned by any
act or omission of the person bonded under this division, such surety
shall be subrogated to all the rights of the state in connection with
the transaction wherein such loss occurred. Section History: Early Form
[C71, 73, 75, 77, 79, 81, § 98.44] Section History: Recent Form
89 Acts, ch 251, §3; 90 Acts, ch 1232, § 1
C93, § 453A.44
94 Acts, ch 1165, §39
Referred to in § 421.26, 453A.40, 453A.45, 453A.50
453A.45 LICENSEES, DUTIES.
1. Every distributor shall keep at each licensed place of
business complete and accurate records for that place of business,
including itemized invoices, of tobacco products held, purchased,
manufactured, brought in or caused to be brought in from without the
state, or shipped or transported to retailers in this state, and of
all sales of tobacco products made, except sales to the ultimate
consumer.
When a licensed distributor sells tobacco products exclusively to
the ultimate consumer at the address given in the license, an invoice
of those sales is not required, but itemized invoices shall be made
of all tobacco products transferred to other retail outlets owned or
controlled by that licensed distributor. All books, records and
other papers and documents required by this subdivision to be kept
shall be preserved for a period of at least three years after the
date of the documents or the date of the entries appearing in the
records, unless the director, in writing, authorized their
destruction or disposal at an earlier date. At any time during usual
business hours, the director, or the director's duly authorized
agents or employees, may enter any place of business of a
distributor, without a search warrant, and inspect the premises, the
records required to be kept under this subdivision, and the tobacco
products contained therein, to determine if all the provisions of
this division are being fully complied with. If the director, or any
such agent or employee, is denied free access or is hindered or
interfered with in making the examination, the license of the
distributor at that premises is subject to revocation by the
director.
2. Every person who sells tobacco products to persons other than
the ultimate consumer shall render with each sale itemized invoices
showing the seller's name and address, the purchaser's name and
address, the date of sale, and all prices and discounts. The person
shall preserve legible copies of all these invoices for three years
from the date of sale.
3. Every retailer and subjobber shall procure itemized invoices
of all tobacco products purchased. The invoices shall show the name
and address of the seller and the date of purchase. The retailer and
subjobber shall preserve a legible copy of each invoice for three
years from the date of purchase. Invoices shall be available for
inspection by the director or the director's authorized agents or
employees at the retailer's or subjobber's place of business.
4. Records of all deliveries or shipments of tobacco products
from any public warehouse of first destination in this state which is
subject to the provisions of and licensed under chapter 554 shall be
kept by the warehouse and be available to the director for
inspection. They shall show the name and address of the consignee,
the date, the quantity of tobacco products delivered, and such other
information as the commissioner may require. These records shall be
preserved for three years from the date of delivery of the tobacco
products.
5. The transportation of tobacco products into this state by
means other than common carrier must be reported to the director
within thirty days with the following exceptions:
a. The transportation of not more than fifty cigars, not more
than ten ounces of snuff or snuff powder, or not more than one pound
of smoking or chewing tobacco or other tobacco products not
specifically mentioned herein;
b. Transportation by a person with a place of business
outside the state, who is licensed as a distributor under section
453A.44, or tobacco products sold by such person to a retailer in
this state.
The report shall be made on forms provided by the director or the
director may require by rule that the report be filed by electronic
transmission.
Common carriers transporting tobacco products into this state
shall file with the director reports of all such shipments other than
those which are delivered to public warehouses of first destination
in this state which are licensed under the provisions of chapter 554.
Such reports shall be filed on or before the tenth day of each month
and shall show with respect to deliveries made in the preceding
month; the date, point of origin, point of delivery, name of
consignee, description and quantity of tobacco products delivered,
and such information as the director may otherwise require.
Any person who fails or refuses to transmit to the director the
required reports or whoever refuses to permit the examination of the
records by the director shall be guilty of a serious misdemeanor. Section History: Early Form
[C71, 73, 75, 77, 79, 81, § 98.45] Section History: Recent Form
87 Acts, ch 199, §1
C93, § 453A.45
99 Acts, ch 151, §82, 89; 2004 Acts, ch 1073, §46, 47; 2007 Acts,
ch 186, §47
453A.46 DISTRIBUTORS, MONTHLY RETURNS -- INTEREST,
PENALTIES.
1. On or before the twentieth day of each calendar month every
distributor with a place of business in this state shall file a
return with the director showing for the preceding calendar month the
quantity and wholesale sales price of each tobacco product brought,
or caused to be brought, into this state for sale; made,
manufactured, or fabricated in this state for sale in this state; and
any other information the director may require. Every licensed
distributor outside this state shall in like manner file a return
with the director showing for the preceding calendar month the
quantity and wholesale sales price of each tobacco product shipped or
transported to retailers in this state to be sold by those retailers
and any other information the director may require. Returns shall be
made upon forms furnished or made available in electronic form and
prescribed by the director and shall contain other information as the
director may require. Each return shall be accompanied by a
remittance for the full tax liability shown on the return, less a
discount as fixed by the director not to exceed five percent of the
tax. Within three years after the return is filed or within three
years after the return became due, whichever is later, the department
shall examine it, determine the correct amount of tax, and assess the
tax against the taxpayer for any deficiency. The period for
examination and determination of the correct amount of tax is
unlimited in the case of a false or fraudulent return made with the
intent to evade tax, or in the case of a failure to file a return.
The three-year limitation period may be extended by a taxpayer by
signing a waiver agreement form provided by the department. The
agreement must stipulate the extension period and the tax period to
which the extension applies. The agreement must also stipulate that
a claim for refund may be filed by the taxpayer at any time during
the extension period.
2. All taxes shall be due and payable not later than the
twentieth day of the month following the calendar month in which they
were incurred, and shall bear interest at the rate in effect under
section 421.7 counting each fraction of a month as an entire month,
computed from the date the tax was due.
The director may reduce or abate interest when in the director's
opinion the facts warrant the reduction or abatement. The exercise
of this power shall be subject to the approval of the attorney
general.
3. In addition to the tax or additional tax, the taxpayer shall
also pay a penalty as provided in section 421.27 and be subject to
the civil penalties set forth in sections 421.27; 453A.31, subsection
2; and 453A.50, subsection 3, as applicable.
4. The department shall notify any person assessed pursuant to
this section by sending a written notice of the determination by mail
to the principal place of business of the person as shown on the
person's application for permit, and if an application was not filed
by the person, to the person's last known address. A determination
by the department of the amount of tax, penalty, and interest due, or
the amount of refund for excess tax paid, is final, unless the person
aggrieved by the determination appeals to the director for a revision
of the determination within sixty days from the date of the notice of
determination of tax, penalty, and interest or refund owing or unless
the taxpayer contests the determination by paying the tax, interest,
and penalty and timely filing a claim for refund. The director shall
grant a hearing and upon the hearing, the director shall determine
the correct tax, penalty, and interest or refund due and notify the
appellant of the decision by mail. Judicial review of action of the
director may be sought in accordance with chapter 17A and section
422.29.
5. The director may recover the amount of any tax due and unpaid,
interest, and any penalty in a civil action. The collection of such
a tax, interest, or penalty shall not be a bar to any prosecution
under this division.
6. On or before the twentieth day of each calendar month, every
consumer who, during the preceding calendar month, has acquired title
to or possession of tobacco products for use or storage in this
state, upon which tobacco products the tax imposed by section 453A.43
has not been paid, shall file a return with the director showing the
quantity of tobacco products so acquired. The return shall be made
upon a form furnished and prescribed by the director, and shall
contain other information as the director may require. The return
shall be accompanied by a remittance for the full unpaid tax
liability shown by it. Within three years after the return is filed
or within three years after the return became due, whichever is
later, the department shall examine it, determine the correct amount
of tax, and assess the tax against the taxpayer for any deficiency.
The period for examination and determination of the correct amount of
tax is unlimited in the case of a false or fraudulent return made
with the intent to evade tax, or in the case of a failure to file a
return.
7. The director may require by rule that reports{ be filed by
electronic transmission. Section History: Early Form
[C71, 73, 75, 77, 79, 81, § 98.46] Section History: Recent Form
84 Acts, ch 1173, § 2; 86 Acts, ch 1007, § 9; 87 Acts, ch 199, §
2, 3; 90 Acts, ch 1172, § 2
C93, § 453A.46
94 Acts, ch 1133, §14, 16; 99 Acts, ch 151, §83, 89; 2004 Acts, ch
1073, §48; 2007 Acts, ch 186, §48, 49
Referred to in § 421.10, 453A.40 Footnotes
{The word "returns" probably intended; corrective legislation is
pending
453A.47 REFUNDS, CREDITS.
Where tobacco products upon which the tax imposed by this division
has been reported and paid, are shipped or transported by the
distributor to consumers, to be consumed without the state, or to
retailers or subjobbers without the state, to be sold by those
retailers, or subjobbers without the state, or are returned to the
manufacturer by the distributor or destroyed by the distributor,
refund of such tax or credit may be made to the distributor in
accordance with regulations prescribed by the director. Any
overpayment of the tax imposed under section 453A.43 may be made to
the taxpayer in accordance with regulations prescribed by the
director. The director shall cause any such refund of tax to be paid
out of the general revenue fund, and so much of said fund as may be
necessary is hereby appropriated for that purpose. Section History: Early Form
[C71, 73, 75, 77, 79, 81, § 98.47] Section History: Recent Form
C93, § 453A.47
453A.47A RETAILERS -- PERMITS -- FEES -- PENALTIES.
1. Permits required. A person shall not engage in the
business of a retailer of tobacco products at any place of business
without first having received a permit as a tobacco products
retailer.
2. No sales without permit. A retailer shall not sell any
tobacco products until an application has been filed and the fee
prescribed paid for a permit and until such permit is obtained and
only while such permit is not suspended, unrevoked, or unexpired.
3. Number of permits. An application shall be filed and a
permit obtained for each place of business owned or operated by a
retailer.
4. Retailer -- cigarettes and tobacco products. A retailer,
as defined in section 453A.1, who holds a permit under division I of
this chapter is not required to also obtain a retail permit under
this division. However, if a retailer, as defined in section 453A.1,
only holds a permit under division I of this chapter and that permit
is suspended, revoked, or expired, the retailer shall not sell any
cigarettes or tobacco products during the time which the permit is
suspended, revoked, or expired.
5. Separate permit. A separate retail permit shall be
required of a distributor or subjobber if the distributor or
subjobber sells tobacco products at retail.
6. Issuance. Cities shall issue retail permits to retailers
within their respective limits. County boards of supervisors shall
issue retail permits to retailers in their respective counties,
outside of the corporate limits of cities. The city or county shall
submit a duplicate of any application for a retail permit and any
retail permit issued by the entity under this section to the Iowa
department of public health within thirty days of issuance.
7. Fees -- expiration.
a. All permits provided for in this division shall expire on
June 30 of each year. A permit shall not be granted or issued until
the applicant has paid the fees provided for in this section for the
period ending June 30 next, to the city or county granting the
permit. The fee for retail permits is as follows when the permit is
granted during the month of July, August, or September:
(1) In places outside any city, fifty dollars.
(2) In cities of less than fifteen thousand population,
seventy-five dollars.
(3) In cities of fifteen thousand or more population, one hundred
dollars.
b. If any permit is granted during the month of October,
November, or December, the fee shall be three-fourths of the above
maximum schedule; if granted during the month of January, February,
or March, one-half of the maximum schedule, and if granted during the
month of April, May, or June, one-fourth of the maximum schedule.
8. Refunds.
a. An unrevoked permit for which the retailer paid the full
annual fee may be surrendered during the first nine months of the
year to the officer issuing it, and the city or county granting the
permit shall make refunds to the retailer as follows:
(1) Three-fourths of the annual fee if the surrender is made
during July, August, or September.
(2) One-half of the annual fee if the surrender is made during
October, November, or December.
(3) One-fourth of the annual fee if the surrender is made during
January, February, or March.
b. An unrevoked permit for which the retailer has paid
three-fourths of a full annual fee may be surrendered during the
first six months of the period covered by the payment, and the city
or county shall make refunds to the retailer as follows:
(1) A sum equal to one-half of an annual fee if the surrender is
made during October, November, or December.
(2) A sum equal to one-fourth of an annual fee if the surrender
is made during January, February, or March.
c. An unrevoked permit for which the retailer has paid
one-half of a full annual fee may be surrendered during the first
three months of the period covered by the payment, and the city or
county shall refund to the retailer a sum equal to one-fourth of an
annual fee.
9. Application. Retail permits shall be issued only upon
applications, accompanied by the fee indicated above, made upon forms
furnished by the department upon written request. The failure to
furnish such forms shall be no excuse for the failure to file the
form unless absolute refusal is shown. The forms shall specify:
a. The manner under which the retailer transacts or intends
to transact business as a retailer.
b. The principal office, residence, and place of business,
for which the permit is to apply.
c. If the applicant is not an individual, the principal
officers or members of the applicant, not to exceed three, and their
addresses.
d. Such other information as the director shall by rules
prescribe.
10. Records and reports of retailers.
a. The director shall prescribe the forms necessary for the
efficient administration of this section and may require uniform
books and records to be used and kept by each retailer or other
person as deemed necessary.
b. Every retailer shall, when requested by the department,
make additional reports as the department deems necessary and proper
and shall at the request of the department furnish full and complete
information pertaining to any transaction of the retailer involving
the purchase or sale or use of tobacco products.
11. Penalties. The permit suspension and revocation
provisions and the civil penalties established in section 453A.22
shall apply to retailers under this division, in addition to any
other penalties imposed under this division. Section History: Recent Form
2005 Acts, ch 93, §4; 2005 Acts, ch 179, §131
453A.48 INVESTIGATIONS AND HEARINGS, TESTIMONIAL
POWERS.
1. The director, or the director's duly authorized agents, may
conduct investigations, inquiries, and hearings for the purpose of
enforcing the provisions of this division, and, in connection with
such investigations, inquiries, and hearings, the director and the
director's duly authorized agents shall have all the powers conferred
upon the director and the director's examiners by Iowa statutes, and
the provisions of such shall apply to all such investigations,
inquiries and hearings.
2. A hearing conducted under this division shall be preceded by
ten days' notice in writing of the subject of the hearing, including,
in the case of suspension or revocation of a license, a statement of
the nature of the charges against the licensee. The notice shall be
sent by mail to the last known address of the licensee or other
person involved in the hearing, and the service shall be complete
upon mailing. After every hearing the director shall make the
director's findings and order in writing. The findings and order
shall be filed in the office of the director, and a copy sent by mail
or otherwise to the person to whom the notice was directed.
3. The director may exchange information with the officers and
agencies of other states administering laws relating to the taxation
of tobacco products.
4. No person shall be excused from testifying or from producing,
pursuant to a subpoena, any books, papers, records or memoranda in
any investigation or upon any hearing, upon the ground that the
testimony or evidence, documentary or otherwise, may tend to
incriminate the person or subject the person to a criminal penalty,
but no person shall be prosecuted or subjected to any criminal
penalty for or on account of any transaction made or thing concerning
which the person may testify or produce evidence, documentary or
otherwise, before the director or an employee or agent thereof;
provided that such immunity shall extend only to a natural person
who, in obedience to a subpoena, gives testimony under oath or
produces evidence, documentary or otherwise, pursuant to a subpoena.
No person so testifying shall be exempt from prosecution and
punishment for perjury committed in so testifying.
5. Any person aggrieved by an order of the director fixing a tax,
penalty or interest under section 453A.43 may, within sixty days from
the date of notice of the order, appeal to the board of review in the
manner provided by law or unless the taxpayer contests the
determination by paying the tax, interest, and penalty and timely
filing a claim for refund. Judicial review of any other action of
the director may be sought in accordance with the terms of the Iowa
administrative procedure Act, chapter 17A. Section History: Early Form
[C71, 73, 75, 77, 79, 81, § 98.48] Section History: Recent Form
86 Acts, ch 1241, § 5
C93, § 453A.48
94 Acts, ch 1133, §15, 16; 2003 Acts, ch 44, §114
Referred to in § 453A.44
453A.49 ENFORCEMENT.
The director shall enforce the provisions of this division. The
director may prescribe rules not inconsistent with the provisions of
this division for its detailed and efficient administration. In the
enforcement of this division the director may call upon any county
attorney or the attorney general for assistance. The director may
bring injunction proceedings to restrain any person from acting as a
distributor or subjobber without complying with the provisions of
this division. Section History: Early Form
[C71, 73, 75, 77, 79, 81, § 98.49] Section History: Recent Form
C93, § 453A.49
Referred to in § 331.756(20)
453A.50 VIOLATIONS, PENALTIES.
1. Any person who in any manner knowingly attempts to evade the
tax imposed by this division or who knowingly aids or abets in the
evasion or attempted evasion of the tax or who knowingly violates the
provisions of section 453A.44, subsection 1, of this division, shall
be guilty of a serious misdemeanor.
2. Except as otherwise provided, any person who violates any
provisions of this division shall be guilty of a simple misdemeanor.
3. a. The following civil penalties shall be imposed for a
violation of this division:
(1) A two hundred dollar penalty for the first violation.
(2) A five hundred dollar penalty for a second violation within
three years of the first violation.
(3) A thousand dollar penalty for a third or subsequent violation
within three years of the first violation.
b. The penalty imposed in this subsection is in addition to
the tax, penalty, and interest imposed in other sections of this
division. Each day a violation occurs counts as a new violation for
purposes of this subsection. Section History: Early Form
[C71, 73, 75, 77, 79, 81, § 98.50] Section History: Recent Form
C93, § 453A.50
2007 Acts, ch 186, §50, 51
Referred to in § 453A.46
Seizure and forfeiture of tobacco products, see §453A.32
453A.51 ASSESSMENT OF COST OF AUDIT.
The department may employ auditors or other persons to audit and
examine the books and records of a permit holder or other person
dealing in tobacco products to ascertain whether the permit holder or
other person has paid the amount of the taxes required to be paid by
the permit holder or other person under the provisions of this
chapter. If the taxes have not been paid, as required, the
department shall assess against the permit holder or other person, as
additional penalty, the reasonable expenses and costs of the
investigation and audit. Section History: Recent Form
2007 Acts, ch 186, §52
453A.52 THROUGH 453A.55 Reserved.
453A.56 UNIFORM APPLICATION.
Enforcement of this chapter shall be implemented in an equitable
manner throughout the state. For the purpose of equitable and
uniform implementation, application, and enforcement of state and
local laws and regulations, the provisions of this chapter shall
supersede any local law or regulation which is inconsistent with or
conflicts with the provisions of this chapter. Section History: Recent Form
91 Acts, ch 240, §8
CS91, § 98.56
C93, § 453A.56