No. 33691 (Amendment): Section R865-20T-13. Calculation of Tax on Moist Snuff Pursuant to Utah Code Ann. Section 59-14-302

(Amendment)

DAR File No.: 33691
Filed: 06/01/2010 11:53:13 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed amendment will implement H.B. 92 (2010). (DAR NOTE: H.B. 92 (2010) is found at Chapter 115, Laws of Utah 2010, and was effective 05/11/2010.)

Summary of the rule or change:

The proposed amendment indicates that the moisture content that will be used to determine whether a tobacco product will be taxed as moist snuff (by weight), or taxed as other tobacco product (by value), shall be the moisture content the manufacturer reports annually to the U.S. Department of Health and Human Services.

State statutory or constitutional authorization for this rule:

• Section 59-14-302

Anticipated cost or savings to:

the state budget:

None--Any impacts were considered in H.B. 92 (2010).

local governments:

None--Any impacts were considered in H.B. 92 (2010).

small businesses:

None--Any impacts were considered in H.B. 92 (2010).

persons other than small businesses, businesses, or local governmental entities:

None--Any impacts were considered in H.B. 92 (2010).

Compliance costs for affected persons:

None--The proposed amendment allows a manufacturer to document the moisture content of moist snuff in the same manner the manufacturer documents moisture content to the U.S. Department of Health and Human Services.

Comments by the department head on the fiscal impact the rule may have on businesses:

None--No extra burden.

Michael J. Cragun, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY, UT 84134

Direct questions regarding this rule to:

• Michael Cragun at the above address, by phone at 801-297-3907, by FAX at 801-297-3919, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/15/2010

This rule may become effective on:

07/22/2010

Authorized by:

R. Bruce Johnson, Tax Commission Chair

RULE TEXT

R865. Tax Commission, Auditing.

R865-20T. Tobacco Tax.

R865-20T-13. Calculation of Tax on Moist Snuff Pursuant to Utah Code Ann. Section 59-14-302.

(1) Moisture content, for purposes of ascertaining whether a tobacco product meets the definition of moist snuff, shall be the moisture content annually reported by the manufacturer to the United States Department of Health and Human Services.

[(1)](2)(a) Tax on moist snuff shall be calculated by multiplying the net weight as listed by the manufacturer, in ounces, of the taxable moist snuff by $[0.75]1.83.

(b) If the net weight includes a fractional part of an ounce, that fractional part of an ounce shall be included in the calculation.

[(2)](3) The calculation described in Subsection [(1)](2) shall be carried to three decimal places and rounded up to the nearest cent whenever the third decimal place of the calculation in Subsection [(1)](2) is greater than 4.

 

KEY: taxation, tobacco products

Date of Enactment or Last Substantive Amendment: [ December 8, 2009 ] 2010

Notice of Continuation: March 19, 2007

Authorizing, and Implemented or Interpreted Law: 59-14-301 through 59-14-303

 

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