Chapter 24. Tobacco Tax.

§ 47–2401. Definitions.

As used in this chapter, unless the context clearly indicates otherwise:

(1) The term “cigar” means any roll for smoking, other than a cigarette, where both the roll and wrapper or cover of the roll are composed entirely of tobacco.

(1A) The term “cigarette” means:

(A) Any roll for smoking containing tobacco wrapped in paper or in any substance other than tobacco leaf;

(B) Any roll for smoking containing tobacco, wrapped in any substance, weighing 4 pounds per thousand or less, except those wrapped entirely in whole tobacco leaf that do not have a filter; or

(C) Any roll for smoking containing tobacco wrapped in any substance, however labeled or named, flavored or not, which because of its appearance, size, the type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to, purchased by, or consumed by consumers as a cigarette as described in this paragraph.

(2) The term “consumer” means any person who manufactures or possesses cigarettes or other tobacco products for his own consumption or for transfer, without consideration, to another consumer, but not for transfer to other persons or for transfer with consideration.

(3) The term “District” means the District of Columbia.

(3A) The term “importer” means “importer” as the term is defined in section 5702(l) of the Internal Revenue Code of 1986, approved October 22, 1986 (68A Stat. 707; 26 U.S.C. § 5702(l)) [now 26 U.S.C. § 5702(k)].

(3B) The term “manufacturer” means “manufacturer of tobacco products” as the term is defined in section 5702(d) of the Internal Revenue Code of 1986, approved October 22, 1986 (68A Stat. 707; 26 U.S.C. § 5702(d)).

(4) The term “Mayor” means the Mayor of the District of Columbia or his authorized representatives.

(5) The term “original package” means a sealed package into which cigarettes or other tobacco products are put up by the manufacturer for sale to consumers; provided, that if the package contains smaller-size packages that are also intended by the manufacturer for sale to consumers, only the smallest-size sealed package intended for sale to consumers shall be considered the original package.

(5A) The term “other tobacco product” means any product containing, made from, or derived from tobacco, other than a cigarette or premium cigar, that is intended or expected to be consumed. The term “other tobacco product” includes vapor products, as defined in paragraph (9A) of this section, but does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product, as a tobacco dependence product, or for other medical purposes, and that is being marketed and sold solely for such an approved purpose.

(5B) The term “package” means “package” as the term is defined in section 3(4) of the Federal Cigarette Labeling and Advertising Act, approved July 27, 1965 (79 Stat. 282; 15 U.S.C. § 1332(4)).

(6) The term “person” means any individual, partnership, society, club, association, joint-stock company, corporation, estate, receiver, trustee, assignee, referee, and any person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise; any combination of individuals or entities acting as a unit, or any officer or employee of a corporation or member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect to which the violation occurs.

(7) The term “possession” includes actual or constructive possession, having legal title or an equitable interest which entitles a person to such possession, and the exercise of any right or power incident to such ownership or possession.

(7A) The term “premium cigar” means any cigar with a retail cost of $ 2.00 or more, or packaged units of cigars averaging $ 2.00 or more per packaged cigar at retail.

(8) The term “sell” or “sale” means any transaction where title or possession, or both, of cigarettes or other tobacco products is, or is to be, transferred in any manner or by any means whatsoever, whether with or without consideration. The word “sell” or “sale” includes offering for sale, keeping for sale, or displaying for sale.

(8A) Repealed.

(9) The term “stamp” means any fusion decal stamps, impressions made by metering devices, or other indicia authorized by the Mayor as evidence that the tax levied and imposed by this chapter has been paid.

(9A) The term “vapor product” means:

(A) Any non-lighting, noncombustible product that employs a mechanical heating element, battery, or electronic circuit, regardless of shape or size, that can be used to produce aerosol from nicotine in a solution; or

(B) Any vapor cartridge or other container of nicotine in a solution or other form that is intended to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.

(10) The term “vending machine” means any automated, self-service device that dispenses cigarettes or other tobacco product upon insertion of money, tokens, or any other form of payment.

(11) The term “wholesale price” means the price for which a licensed wholesaler sells other tobacco products. The wholesale price includes the applicable federal excise tax, freight charges, or packaging costs, regardless of whether they were included in the purchase price, but excludes any discount, trade allowance, rebate, or other reduction.

(May 27, 1949, 63 Stat. 136, ch. 146, title VI, § 602; Mar. 10, 1982, D.C. Law 4-71, § 2, 28 DCR 5243; May 2, 1991, D.C. Law 8-262, § 4(a), 37 DCR 8434; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Apr. 3, 2001, D.C. Law 13-225, § 2(b), 48 DCR 35; Oct. 19, 2002, D.C. Law 14-213, § 33(x), 49 DCR 8140; Mar. 3, 2010, D.C. Law 18-111, § 7241(i)(2), 57 DCR 181; July 23, 2010, D.C. Law 18-189, § 4(a), 57 DCR 3019; Feb. 26, 2015, D.C. Law 20-155, §§ 7012(e)(1) and (e)(2), 61 DCR 9990; Oct. 22, 2015, D.C. Law 21-36, § 7072(b), 62 DCR 10905.)

Prior Codifications

1981 Ed., § 47-2401.

1973 Ed., § 47-2801.

Applicability of D.C. Law 20-223: Section 301(a) of D.C. Law 20-223 provided (1) that § 101 of the act shall apply for the tax year in which its fiscal effect has been included in an approved budget and financial plan; (2) that the Chief Financial Officer shall certify the date of the inclusion of the fiscal effect in an approved budget and financial plan, and provide notice to the Budget Director of the Council of the certification; and (3) that the Budget Director shall cause the notice of the certification to be published in the District of Columbia Register and that the date of publication of the notice of the certification shall not affect the applicability of § 101.

Section References

This section is referenced in § 47-2001.

Effect of Amendments

D.C. Law 13-225 rewrote par. (1): and added pars. (3A), (3B), and (5A).

Prior to amendment, par. (1) read:

“(1) The term ‘cigarette’ means any roll of tobacco, or any substitute therefor, which is wrapped in paper or in any substance other than tobacco.”

D.C. Law 14-213, in par. (5A), validated a previously made technical correction.

D.C. Law 18-111 rewrote par. (1).

D.C. Law 18-189 redesignated former par. (1) as par. (1A); added pars. (1), (5A), and (8A); rewrote par. (5); and redesignated former par. (5A) as par. (5B). Prior to amendment, par. (5) read as follows: “(5) The term ‘original package’ means the individual package, box, parcel, or other container in which cigarettes are put up by the manufacturer. The term ‘original package’ also includes any wrapper immediately enclosing such package, box, parcel, or other container that is prescribed by the Mayor as part of the original package.”

Section 7022(e)(1) of D.C. Law 20-155 substituted “Tobacco” for “Cigarette” in the chapter heading.

The 2015 amendment by D.C. Law 20-155 rewrote (1); added “or other tobacco products” in (2), (8), and (10); deleted “cigars” following “cigarettes” in (5); rewrote (5A); added (7A) and (11); and repealed (8A).

The 2015 amendment by D.C. Law 21-36 added “unless the unit or residential property is a for-sale unit constructed pursuant to the Housing Production Trust Fund Act of 1988, effective March 16, 1989 (D.C. Law 7-202; D.C. Official Code Section 42-2801 et seq.), that remains affordable for 180 months or a longer period selected by the developer, in accordance with section 2218 of Title 14 of the District of Columbia Municipal Regulations (14 DCMR Section 2218), then this chapter shall apply” in (c).

Emergency Legislation

For temporary (90 day) amendment of section, see § 7121(a) of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) amendment of section, see § 7241(i)(2) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 2(a), (b)(2), of Tobacco Excise Tax Emergency Amendment Act of 2009 (D.C. Act 18-214, October 21, 2009, 56 DCR 8496).

For temporary (90 day) amendment of section, see § 7241(i)(2) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 days) amendment of the chapter heading, see § 7022(e)(1) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 7022(e)(2) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of the chapter heading, see § 7012(e)(1) of the Fiscal Year Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see § 7012(e)(2) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of the chapter heading, see § 7012(e)(1) of the Fiscal Year Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

For temporary (90 days) amendment of this section, see § 7012(e)(2) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

For temporary (90 days) amendment of this section, see § 7042(b) of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

Editor's Notes

Applicability of D.C. Law 21-36: Section 7073 of D.C. Law 21-36 provided that § 7072 of the act shall apply for taxable periods beginning on or after October 1, 2015.

§ 47–2402. Imposition; payment of cigarette tax.

(a)(1) Except as otherwise provided in § 47-2403, a tax is levied and imposed on the sale or possession on all cigarettes in the District of Columbia at the rate of $0.225 for each cigarette.

(2) Subject to paragraph (3) of this subsection and in lieu of the tax otherwise imposed by § 47-2002, a surtax is levied and imposed on the sale or possession of all cigarettes in the District at the rate of $0.36 per package of 20 or fewer cigarettes. If there are more than 20 cigarettes in the package, the surtax per pack will be incrementally increased by $.018 per each cigarette above 20.

(3)(A) Beginning as of March 31, 2012, and on March 31st of each year thereafter, the Mayor shall calculate the average retail price of a package of cigarettes from the best information available and shall recompute the surtax on the basis of the then applicable sales and use tax rate that otherwise would be applicable to the sale of cigarettes under § 47-2002.

(B) In calculating the average retail price for purposes of this paragraph, the Mayor shall exclude the current surtax imposed by this section and the portion of the presumptive wholesale and retail markup imposed by Chapter 45A of Title 28 of the District of Columbia Official Code on the current surtax. The Mayor shall provide notice of any change in the amount of the surtax on or before September 1st of that year, and the change shall be effective as of the following October 1st.

(b) Cigarettes on which the taxes levied and imposed by this section have been paid shall not be subject to additional taxation under this section; provided, that the burden of proof that the taxes levied and imposed by this section have been paid shall be upon the person who sells or possesses cigarettes in the District, against whom a tax assessment has been made, who has submitted an application for a refund, or whose cigarettes have been seized. For the purposes of this section, the term “person” includes any officer or employee of a corporation responsible for payment of the tax, or any member of a partnership or association responsible for the payment of the tax.

(c) The tax levied and imposed by this section shall be paid by the affixture of stamps, purchased from the Mayor, evidencing the payment of the amount of tax imposed by this section. Such stamps shall be affixed to the original packages of cigarettes included in the directory of Tobacco Product Manufacturers maintained pursuant to § 7-1803.03(b) and shall be cancelled in the manner prescribed by the Mayor.

(d) Except as otherwise provided in this subsection and subsection (f) of this section, each licensed wholesaler shall affix a stamp or stamps, evidencing the payment of the amount of tax imposed by this section, to each original package of cigarettes to be kept for sale, offered for sale, displayed for sale, or sold within the District. Such stamps shall be affixed to each original package of such cigarettes within 72 hours after the receipt of such cigarettes and prior to the sale of such cigarettes unless such cigarettes are exempt from taxation under the provisions of this chapter. Whenever any cigarettes are found in the place of business of a licensed wholesaler without the stamps affixed as herein provided, or not segregated or marked as having been received within the preceding 72 hours, or not segregated or marked as being held for sale outside of the limits of the District, or not segregated or marked as being held for sale to the United States or the District government, or any instrumentalities thereof, or not segregated or marked for other exempt purposes under this chapter, a prima facie presumption shall arise that such cigarettes are subject to the tax levied and imposed by this section and are possessed in violation of the provisions of this chapter.

(e) Licensed retailers and vending machine operators shall not accept deliveries of unstamped or improperly stamped cigarettes. Such licensees shall examine all packages of cigarettes immediately upon their receipt and shall immediately return any and all unstamped or improperly stamped cigarettes to the licensed wholesaler. Unless substantial evidence to the contrary is shown, the possession of any unstamped or improperly stamped cigarettes by such licensees shall be prima facie evidence that such cigarettes are possessed in violation of the provisions of this chapter. The Mayor may, however, authorize licensed retailers and vending machine operators to acquire and have in their possession cigarettes bearing cigarette tax stamps issued by any other state or jurisdiction; provided, that such cigarettes are intended for sale in such other state or jurisdiction. Licensed retailers and vending machine operators shall not purchase, acquire, or have in their possession District tax stamps. Notwithstanding the provisions of this subsection, licensed retailers or vending machine operators, other than licensed retailers or vending machine operators who are also licensed wholesalers, who either have in their possession unused cigarette tax stamps or unstamped cigarettes on the effective date of this chapter shall not be deemed in violation of this subsection; provided, that such licensed retailers and vending machine operators affix or redeem such unused cigarette tax stamps and pay the tax levied and imposed by this section on such unstamped cigarettes in the manner and within the time specified by the Mayor.

(f) On sales of cigarettes to other licensed wholesalers, a licensed wholesaler may deliver such cigarettes without affixing stamps thereon, and such other licensed wholesalers shall be liable for the tax imposed by this section on such cigarettes.

(g) All packages of cigarettes placed in cigarette vending machines shall be placed in such manner that the District cigarette tax stamps are visible whenever the packages are within that area of the vending machine which permits visibility of the packages.

(h) Except as authorized by this section or § 47-2403, no person shall willfully or knowingly sell, transfer, buy, receive, have in his possession, or offer to sell, transfer, buy, or receive any unstamped or improperly stamped cigarettes.

(i) No person shall sell, transfer, or offer to sell or transfer any cigarette tax stamps to any person other than the Mayor; nor shall any person buy, receive or offer to buy or receive any cigarette tax stamps from any person other than the Mayor.

(j) The Mayor may by regulation provide for the purchase of stamps at a discount not exceeding 10% of the face value of such stamps.

(k) The taxes imposed under this section shall be deemed to be a part of the selling price of cigarettes and shall be in addition to, and not in lieu of, any taxes imposed by any other law.

(l)(1) There is established as a special fund the Smoking Cessation Fund (“Fund”), which shall be administered by the Department of Health in accordance with paragraph (3) of this subsection.

(2) There shall be deposited into the Fund:

(A) Such funds as may be appropriated from time to time; and

(B) Interest earned on money deposited into the Fund.

(3) The Fund shall be used for smoking-cessation efforts.

(4) Repealed.

(5)(A) The money deposited into the Fund, and interest earned, shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.

(B) Subject to authorization by Congress, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation.

(May 27, 1949, 63 Stat. 137, ch. 146, title VI, § 603; May 18, 1954, 68 Stat. 115, ch. 218, title IX, § 901; Sept. 30, 1966, 80 Stat. 856, Pub. L. 89-610, title IV, § 401; Oct. 31, 1969, 83 Stat. 173, Pub. L. 91-106, title III, § 301; Oct. 21, 1972, 86 Stat. 1015, Pub. L. 92-518, title III, § 302(a); Oct. 21, 1975, D.C. Law 1-23, title IV, § 401(a), 22 DCR 2103; June 15, 1976, D.C. Law 1-70, title V, § 501, 23 DCR 546; Mar. 10, 1982, D.C. Law 4-71, § 2, 28 DCR 5243; Sept. 10, 1985, D.C. Law 6-33, § 2(a), 32 DCR 3774; Feb. 28, 1987, D.C. Law 6-198, § 2(a), 34 DCR 515; Aug. 17, 1991, D.C. Law 9-31, § 2(a), 38 DCR 4218; Sept. 10, 1992, D.C. Law 9-145, § 109(a), 39 DCR 4895; Sept. 30, 1993, D.C. Law 10-25, § 113(a), 40 DCR 5489; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; June 5, 2003, D.C. Law 14-307, § 902(c), 49 DCR 11664; Aug. 16, 2008, D.C. Law 17-219, §§ 5055(a), 7010, 55 DCR 7598; Mar. 3, 2010, D.C. Law 18-111, § 7241(i)(3), 57 DCR 181; Sept. 14, 2011, D.C. Law 19-21, § 8052(b), 58 DCR 6226; Dec. 24, 2013, D.C. Law 20-61, § 7332, 60 DCR 12472; Feb. 26, 2015, D.C. Law 20-155, §§ 7012(e)(3), 7043(b), 61 DCR 9990; Oct. 30, 2018, D.C. Law 22-168, § 7292, 65 DCR 9388.)

Prior Codifications

1981 Ed., § 47-2402.

1973 Ed., § 47-2802.

Section References

This section is referenced in § 28-4521, § 47-2403, § 47-2405, and § 47-2409.

Effect of Amendments

D.C. Law 14-307, in subsec. (a), substituted “$.05” for “3.25 cents”.

D.C. Law 17-219, in subsec. (a), substituted “$.10 for each cigarette” for “$.05 for each cigarette”; and, in subsec. (c), rewrote the second sentence, which had read as follows: “Such stamps shall be affixed to the original packages of cigarettes and shall be cancelled, in the manner prescribed by the Mayor.”

D.C. Law 18-111, in subsec. (a), substituted “$.125” for “$.10”.

D.C. Law 19-21 rewrote subsec. (a), which had read as follows: “(a) Except as otherwise provided in § 47-2403, a tax is levied and imposed on the sale or possession of all cigarettes in the District of Columbia at the rate of $.125 for each cigarette.”

The 2013 amendment by D.C. Law 20-61 added (l).

The 2015 amendment by D.C. Law 20-155 added “of cigarette tax” in the section heading.

Cross References

Tax rates, records and surplus funds, authority of Council to change certain tax rates, see § 47-504.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7292 of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).

For temporary (90 days) amendment of this section, see § 7292 of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).

For temporary (90 day) amendment of section, see § 902(c) and 903 of Fiscal Year 2003 Budget Support Amendment Emergency Act of 2002 (D.C. Act 14-544, December 4, 2002, 49 DCR 11700).

For temporary (90 day) amendment of section, see §§ 902(c) and 903 of the Fiscal Year 2003 Budget Support Amendment Congressional Review Emergency Act of 2003 (D.C. Act 15-27, February 24, 2003, 50 DCR 2151).

For temporary (90 day) amendment of section, see §§ 902(c) and 903 of Fiscal Year 2003 Budget Support Amendment Second Congressional Review Emergency Act of 2003 (D.C. Act 15-103, June 20, 2003, 50 DCR 5499).

For temporary (90 day) amendment of section, see § 2 of the Cigarette Stamp Clarification Emergency Amendment Act of 2007 (D.C. Act 17-47, May 15, 2007, 54 DCR 5356).

For temporary (90 day) amendment of section, see § 2 of Cigarette Stamp Clarification Emergency Amendment Act of 2008 (D.C. Act 17-366, May 5, 2008, 55 DCR 5689).

For temporary (90 day) amendment of section, see § 7111(h) of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) additions, see § 7121(b) of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) amendment of section, see § 7241(i)(3) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 2(a), (b)(3) of Tobacco Excise Tax Emergency Amendment Act of 2009 (D.C. Act 18-214, October 21, 2009, 56 DCR 8496).

For temporary (90 day) addition, see § 2(b)(4) of Tobacco Excise Tax Emergency Amendment Act of 2009 (D.C. Act 18-214, October 21, 2009, 56 DCR 8496).

For temporary (90 day) amendment of section, see § 7241(i)(3) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 days) amendment of this section, see § 7332 of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).

For temporary (90 days) amendment of this section, see § 7332 of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).

For temporary (90 days) amendment of this section, see §§ 7022(e)(3) and 7053(b) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see §§ 7012(e)(3) and 7043(b) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see §§ 7012(e)(3) and 7043(b) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

Temporary Legislation

Section 2 of D.C. Law 17-18 amended the second sentence of subsec. (c) to read as follows: “Such stamps shall be affixed to the original packages of cigarettes included in the directory of Tobacco Product Manufacturers maintained pursuant to § 7-1803.03(b) and shall be cancelled in the manner prescribed by the Mayor.”

Section 4(b) of D.C. Law 17-18 provided that the act shall expire after 225 days of its having taken effect.

Section 2 of D.C. Law 17-192, in subsec. (c), amended the second sentence to read as follows: “Such stamps shall be affixed to the original packages of cigarettes included in the directory of Tobacco Product Manufacturers maintained pursuant to § 7-1803.03(b) and shall be cancelled in the manner prescribed by the Mayor.”.

Section 4(b) of D.C. Law 17-192 provided that the act shall expire after 225 days of its having taken effect.

Short Title

Short title: Section 7009 of D.C. Law 17-219 provided that subtitle E of title VII of the act may be cited as the “Cigarette Stamp Clarification Act of 2008”.

Section 7331 of D.C. Law 20-61 provided that Subtitle GG of Title VII of the act may be cited as the “Smoking Cessation Dedicated Funding Act of 2013”.

Effective Dates

Section 3(b) of D.C. Law 6-33 provided that the provisions of the act shall not operate before the 1st day of the 1st month which begins more than 30 days after September 10, 1985.

Editor's Notes

Mayor to report fiscal impact of Law 10-25: Section 113(c) of D.C. Law 10-25 provided that the Mayor shall report to the Council within 6 months of implementation on the fiscal impact of this section.

Section 903 of D.C. Law 14-307 provided: “Sec. 903. Applicability. Section 902 shall apply as of January 1, 2003.”

Section 5005(a)(2) of D.C. Law 17-219 provided that this subsection shall apply as of October 1, 2008.

Applicability of D.C. Law 20-61: Section 11001 of D.C. Law 20-61 provided that, except as otherwise provided, the act shall apply as of October 1, 2013.

§ 47–2402.01. Tax on other tobacco products.

(a)(1)(A) A tax is levied and imposed on the sale or possession of other tobacco products in the District.

(B)(i) Other tobacco products on which the taxes levied and imposed by this section have been paid shall not be subject to additional taxation under this section; provided, that the burden of proof that the taxes levied and imposed by this section have been paid shall be upon the person who sells or possesses other tobacco products in the District, against whom a tax assessment has been made, who has submitted an application for a refund, or whose other tobacco products have been seized.

(ii) For the purposes of this subparagraph, the term “person” includes any officer or employee of a corporation responsible for payment of the tax, or any member of a partnership or association responsible for the payment of the tax.

(C) The tax rate for other tobacco products shall be equal to the cigarette tax and surtax under § 47-2402(a)(1)-(2) on a pack of 20 cigarettes, expressed as a percentage of the average wholesale price of a package of 20 cigarettes, for the March 31 preceding the September 1 announcement of the change in rates, or in the case of retailers upon whom this tax is imposed, at a rate prescribed in regulations promulgated by the Mayor. The first calculation shall be made and applicable for calendar quarters beginning after September 30, 2014.

(D) The rate shall be applied against gross receipts from sales of or charges for such other tobacco products subject to the tax under this section.

(2)(A) Beginning as of March 31, 2015, and on March 31 of each year thereafter, the Mayor shall reevaluate the percentage calculation in paragraph (1) of this subsection on the basis of the § 47-2402 cigarette tax and surtax to be effective on the following October 1 on a pack of 20 cigarettes and shall recompute the tax rate on other tobacco product as defined in this chapter.

(B) The Mayor shall provide notice of any change in the tax rate for other tobacco products on or before September 1 of that year, and the change shall be effective as of the following October 1.

(b)(1) On or before the 21st day of each calendar quarter, every person upon whom the weight-based excise tax is imposed under the provisions of this chapter, during the preceding calendar quarter, shall file a return with the Mayor. The return shall provide:

(A) The total amount of product subject to tax for the quarter for which the return is filed;

(B) The amount of tax for which the person is liable; and

(d) The form of returns shall be prescribed by the Mayor and shall contain such information as the Mayor may consider necessary for the proper administration of this chapter.

(Mar. 3, 2010, D.C. Law 18-111, § 7241(i)(4), 57 DCR 181; Feb. 26, 2015, D.C. Law 20-155, § 7012(e)(4), 61 DCR 9990.)

Effect of Amendments

The 2015 amendment by D.C. Law 20-155 rewrote the section heading and (a).

Emergency Legislation

For temporary (90 day) addition, see § 7241(i)(4) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) addition, see § 7241(i)(4) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 days) amendment of this section, see § 7022(e)(4) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 7012(e)(4) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see § 7012(e)(4) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

Editor's Notes

Section 7241(i)(5) of D.C. Law 18-111 provided: “(5) This subsection shall apply to tax periods beginning after December 31, 2009.”

§ 47–2403. Exemptions.

(a) Sale or possession of cigarettes in the District under the following circumstances shall be exempt from the tax levied and imposed by § 47-2402:

(1) Sales of cigarettes or other tobacco products to or by the United States or the District government, or any instrumentalities thereof; possession of cigarettes or other tobacco products lawfully purchased from such governmental entities by persons legally entitled to purchase or receive such cigarettes or other tobacco products; and transfers, without consideration, of cigarettes or other tobacco products lawfully purchased from such governmental entities by persons legally entitled to purchase or receive such cigarettes or other tobacco products to other persons legally entitled to purchase or receive such cigarettes or other tobacco products from such governmental entities;

(2) [Repealed];

(3) Possession of cigarettes by licensed wholesalers for sale outside of the limits of the District or for sale to other licensed wholesalers as provided for in § 47-2402(f); sales of cigarettes by licensed wholesalers to other licensed wholesalers as provided for in § 47-2402(f); and possession by authorized licensed retailers and vending machine operators of cigarettes bearing cigarette tax stamps issued by any other state or jurisdiction for sale in such other state or jurisdiction; provided, that such authorized licensed retailers and vending machine operators are licensed under the laws of such other state or jurisdiction to engage in the business of selling cigarettes therein;

(4) Possession by a consumer of 200 or fewer cigarettes, which do not bear proper evidence of the payment of the tax levied and imposed by § 47-2402, transported into the District by a consumer or manufactured in the District by a consumer; transfers, without consideration, of such cigarettes from 1 consumer to another consumer;

(5) Possession of cigarettes or other tobacco products while being transported under such conditions that they are not deemed contraband under the provisions of § 47-2405; and

(6) Possession of other tobacco product by licensed wholesalers for sale outside of the limits of the District or for sale to other licensed wholesalers as provided for in § 47-2402(f), sales of other tobacco products by licensed wholesalers to other licensed wholesalers as provided for in § 47-2402(f), and possession by authorized licensed retailers and vending machine operators of other tobacco products on which the tax rate for any other state or jurisdiction has been paid, for sale in such other state or jurisdiction; provided, that such authorized licensed retailers and vending machine operators are licensed under the laws of such other state or jurisdiction to engage in the business of selling other tobacco products therein.

(b) The burden of proof that any cigarettes or other tobacco products are exempt from taxation under this chapter shall be upon the person who sells or possesses such cigarettes or other tobacco products.

(May 27, 1949, 63 Stat. 138, ch. 146, title VI, § 604; Mar. 10, 1982, D.C. Law 4-71, § 2, 28 DCR 5243; Sept. 10, 1985, D.C. Law 6-33, § 2(b), 32 DCR 3774; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Feb. 26, 2015, D.C. Law 20-155, § 7012(e)(5), 61 DCR 9990.)

Prior Codifications

1981 Ed., § 47-2403.

1973 Ed., § 47-2803.

Section References

This section is referenced in § 47-2402.

Effect of Amendments

The 2015 amendment by D.C. Law 20-155 added “or other tobacco products” throughout this section; and added (a)(6) and made related changes.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7022(e)(5) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 7012(e)(5) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see § 7012(e)(5) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

Effective Dates

Section 3(b) of D.C. Law 6-33 provided that the provisions of the act shall not operate before the 1st day of the 1st month which begins more than 30 days after September 10, 1985.

§ 47–2404. Licenses.

(a) No person shall manufacture for sale, keep for sale, offer for sale, display for sale in vending machines, or sell cigarettes or other tobacco product in the District without having first obtained a license or licenses for such purpose or purposes from the Mayor.

(b) The Mayor may issue the following types of licenses, upon the filing of an application as prescribed by the Mayor:

(1) Wholesaler’s licenses. — A wholesaler’s license shall authorize the licensee to manufacture, purchase, or otherwise acquire cigarettes or other tobacco product and to keep for sale, offer for sale, and sell such cigarettes or other tobacco product in original packages to consumers, to persons holding a license under this chapter as a wholesaler, retailer, or vending machine operator, and to persons for resale in other states or jurisdictions; provided, that with respect to sales made to persons for resale in other states or jurisdictions, such persons must be licensed under the laws of such other state or jurisdiction to engage in the business of selling cigarettes or other tobacco product therein. A wholesaler’s license shall authorize the licensee to manufacture, keep for sale, offer for sale, and sell cigarettes or other tobacco product only at the place or places designated therein. Except as provided by the Mayor by regulation, a separate license shall be required for each place where cigarettes or other tobacco product are to be manufactured, kept for sale, offered for sale, or sold. The Mayor may provide, by regulation, for the issuance of a wholesaler’s license for a place located outside of the District. The annual fee for a wholesaler’s license shall be $50 for each place designated therein.

(2) Retailer’s licenses. — A retailer’s license shall authorize the licensee to keep for sale, offer for sale, and sell cigarettes or other tobacco product to consumers in original packages from the place or places designated therein. A retailer’s license shall not authorize the licensee to sell cigarettes or other tobacco product to other licensees for resale. Except as provided by the Mayor by regulation, a separate license shall be required for each retail establishment. The annual fee for a retailer’s license shall be $15 for each retail establishment.

(3) Vending machine operator’s licenses restricted.

(A) No license shall be issued for the sale of cigarettes or other tobacco product in an original package from or by means of a vending machine, except in the case of a tavern or nightclub licensed pursuant to § 25-113, an establishment that restricts admittance to persons 21 years of age or older, or a restaurant licensed pursuant to § 25-113.

(B) Any cigarette or other tobacco product vending machine that is located in a tavern, nightclub, establishment, or restaurant in accordance with subparagraph (A) of this paragraph shall be located in an area that is in the immediate vicinity, plain view, and control of a responsible employee, so that any tobacco purchase is readily observable by an employee. The cigarette or other tobacco product vending machine shall not be located in a similar unmonitored area.

(D) Any cigarette or other tobacco product vending machine that is located in a tavern, nightclub, establishment, or restaurant in accordance with subparagraph (A) of this paragraph shall display the warning sign required by § 22-1320(e)(1).

(E) Any cigarette or other tobacco product vending machine that is located in a tavern, nightclub, establishment, or restaurant in accordance with subparagraph (A) of this paragraph shall not contain any non-tobacco product, other than matches.

(c) The Mayor shall keep a complete record of applications made for licenses under this section and of the actions taken thereon.

(d) The Mayor may, by regulation, adjust the license fees imposed by subsection (b) of this section and may establish fees for duplicate licenses.

(e) Licenses issued under this section shall remain in effect for such periods of time as may be prescribed by the Mayor by regulation, not exceeding 1 year from the effective date of such licenses, or until such licenses are suspended or revoked by the Mayor under subsection (f) of this section.

(f) The Mayor may, after a hearing, suspend or revoke any license issued under this section for any violation of this chapter or of the regulations promulgated under this chapter.

(g) The licenses required by this section shall be in addition to the licenses required by any other law or regulation.

(h) The Mayor may suspend any license issued under this section to any person convicted of a first or second violation of § 22-1320. The Mayor shall revoke the license for a third or subsequent violation.

(h-1) The Mayor may, after a hearing, suspend any license issued under this section for a first or second violation of [§ 7-1721.08(a)]. The Mayor shall, after a hearing, revoke any license issued under this section for a third or subsequent violation of [§ 7-1721.08(a)].

(i) Any license issued pursuant to this chapter shall be issued as a General Sales endorsement to a basic business license under the basic business license system as set forth in subchapter I-A of Chapter 28 of this title.

(May 27, 1949, 63 Stat. 138, ch. 146, title VI, § 605; Mar. 10, 1982, D.C. Law 4-71, § 2, 28 DCR 5243; May 2, 1991, D.C. Law 8-262, § 4(b), 37 DCR 8434; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Apr. 20, 1999, D.C. Law 12-261, § 2003(pp)(3), 46 DCR 3142; Oct. 28, 2003, D.C. Law 15-38, § 3(hh)(1), 50 DCR 6913; July 23, 2010, D.C. Law 18-189, § 4(b), 57 DCR 3019; Feb. 26, 2015, D.C. Law 20-155, § 7012(e)(6), 61 DCR 9990; Feb. 18, 2017, D.C. Law 21-191, § 4, 63 DCR 15003; Sept. 22, 2021, D.C. Law 24-25, § 3, 68 DCR 007332.)

Prior Codifications

1981 Ed., § 47-2404.

1973 Ed., § 47-2804.

Section References

This section is referenced in § 7-1721.02, § 7-1721.04, § 7-1721.05, § 7-1721.06, § 7-1803.02, § 7-1803.06, § 47-2409, § 47-2418, and § 47-2422.

Effect of Amendments

D.C. Law 15-38, in subsec. (i), substituted “General Sales endorsement to a basic business license under the basic” for “Class B General Sales endorsement to a master business license under the master”.

D.C. Law 18-189 substituted “cigarettes or other tobacco product” for “cigarettes”; and added subsecs. (b)(3)(D) and (E).

The 2015 amendment by D.C. Law 20-155 added “or other tobacco products” throughout (3)(B).

Cross References

Furnishing tobacco products to minors, license suspension, see § 22-1320.

Applicability

Applicability of D.C. Law 24-25: The Budget Office of the Council of the District of Columbia has determined that D.C. Law 24-25 has been funded. Therefore the amendments to this section by § 3 of D.C. Law 24-25 have been implemented.

Applicability of D.C. Law 24-25: § 4 of D.C. Law 24-25 provided that the change made to this section by § 3 of D.C. Law 24-25 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

Section 7021 of D.C. Law 22-168 repealed section 5 of D.C. Law 21-191 removing the applicability restriction impacting this section. Therefore the amendments of this section by D.C. Law 21-191 have been implemented.

Applicability of D.C. Law 21-191: § 5 of D.C. Law 21-191 provided that the change made to this section by § 4 of D.C. Law 21-191 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

Emergency Legislation

For temporary (90 day) amendment of section, see § 3(hh)(1) of Streamlining Regulation Emergency Act of 2003 (D.C. Act 15-145, August 11, 2003, 50 DCR 6896).

For temporary (90 days) amendment of this section, see § 7022(e)(6) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 7012(e)(6) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see § 7012(e)(6) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

References in Text

Section 25-111, referred to in subsection (b)(3)(A) of this section, is part of Title 25, D.C. Code, which title was amended and enacted by D.C. Law 13-298, effective May 3, 2001. For disposition of the subject matter of former Title 25, see the Disposition Table preceding § 25-101.

§ 47–2405. Transportation of cigarettes and other tobacco products.

(a) Any person, other than a consumer, who transports cigarettes not bearing District cigarette tax stamps or other tobacco products over the public highways, roads, streets, waterways, or other public space of the District, shall have in his actual possession invoices or delivery tickets for such cigarettes or other tobacco products, which show the true name and address of the consignor or seller, the true name and address of the consignee or purchaser, and the quantity and brands of the cigarettes or other tobacco products so transported.

(b) If the cigarettes or other tobacco products are consigned to or purchased by any person in the District, such purchaser or consignee must be a person authorized by this chapter to possess unstamped cigarettes or untaxed other tobacco products in the District. If the invoice or delivery ticket specifies that the cigarettes or other tobacco products are to be delivered to any person in any state or jurisdiction other than the District, such person must be licensed under the laws of such other state or jurisdiction to engage in the business of selling cigarettes or other tobacco products within that state or jurisdiction. Any cigarettes or other tobacco products transported in violation of any of the provisions of this section shall be deemed contraband cigarettes and other tobacco products and such cigarettes or other tobacco products, the conveyance in which such cigarettes or other tobacco products are being transported, and any equipment or devices used in connection with, or to facilitate, the transportation of such cigarettes or other tobacco products shall be subject to seizure and forfeiture as provided for in § 47-2409.

(c) Any person who transports cigarettes in violation of this section shall, upon conviction thereof, be fined not more than $25 for each 200 contraband cigarettes or fraction thereof so transported by him, or by imprisonment for not more than 3 years, or both, and in addition, shall be liable for the tax imposed by § 47-2402 and the interest and penalties imposed by §§ 47-4201.01 [§ 47-4201] and subchapter II of Chapter 42 of this title.

(May 27, 1949, 63 Stat. 138, ch. 146, title VI, § 606; Sept. 14, 1976, D.C. Law 1-82, title I, § 105, 23 DCR 2461; Mar. 10, 1982, D.C. Law 4-71, § 2, 28 DCR 5243; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; June 9, 2001, D.C. Law 13-305, § 406(qq), 48 DCR 334; Feb. 26, 2015, D.C. Law 20-155, § 7012(e)(7), 61 DCR 9990.)

Prior Codifications

1981 Ed., § 47-2405.

1973 Ed., § 47-2805.

Section References

This section is referenced in § 7-1803.06, § 47-2403, § 47-2409, and § 47-2422.

Effect of Amendments

D.C. Law 13-305, in subsec. (c), substituted “§§ 47-4201.01 and subchapter II of Chapter 42 of this title” for “§ 47-2411.01”.

For temporary (90 days) amendment of this section, see § 7022(e)(7) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7022(e)(7) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 7012(e)(7) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see § 7012(e)(7) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

Editor's Notes

Office of Collector of Taxes abolished: See Historical and Statutory Notes following § 47-401.

Section 410(d) of D.C. Law 13-305 provided: “Section 406(a), (c), (j), (m), (p), (q), (s), (w), (bb), (dd), (ee), (hh) through (kk), (mm) through (oo), (qq) through (uu), (yy), (zz), (bbb), (ddd), and (fff) shall apply for all tax years or taxable periods beginning after December 31, 2000.”

§ 47–2406. Offenses relating to stamps.

(a) No person shall, with intent to defraud, alter, forge, make, or counterfeit any stamps authorized by the Mayor under this chapter; or procure or cause to be altered, forged, made, or counterfeited any such stamps; or sell, transfer, buy, receive, have in his possession, or offer to sell, transfer, buy, or receive any such altered, forged, or counterfeited stamps; or make, use, sell, transfer, buy, receive, have in his possession, or procure or cause to be made or used any equipment or material in imitation of the equipment or material used in the manufacture of such stamps.

(b) No person shall, with intent to defraud, cut, tear, or remove from any package of cigarettes, any stamp authorized by the Mayor under this chapter; or procure or cause to be cut, torn, or removed any such stamp; or sell, transfer, buy, receive, have in his possession, or offer to sell, transfer, buy, or receive any cut, torn, or removed stamp.

(c) No person shall, with intent to defraud, alter the cancellation of or otherwise prepare, or cause to be altered or otherwise prepared, any stamp which has already been used for the payment of the tax imposed by this chapter; or sell, transfer, buy, receive, have in his possession, or offer to sell, transfer, buy, or receive any such washed or restored stamp.

(d) No person shall, with intent to defraud, affix to any package of cigarettes, redeem, attempt to affix or redeem, or cause to be affixed or redeemed:

(1) Any stamp which has been cut, torn, or removed from any package of cigarettes;

(2) Any altered, forged, or counterfeited stamp; or

(3) Any washed or restored stamp.

(e) No person shall willfully sell, transfer, buy, receive, have in his possession, or offer to sell, transfer, buy, or receive any package of cigarettes to which is affixed a stamp described in subsection (d) of this section.

(f) Any person who violates any provision of this section shall, upon conviction thereof, be fined not more than the amount set forth in [§ 22-3571.01] or imprisoned for not more than 5 years, or both.

(May 27, 1949, 63 Stat. 139, ch. 146, title VI, § 607; Mar. 10, 1982, D.C. Law 4-71, § 2, 28 DCR 5243; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; June 11, 2013, D.C. Law 19-317, § 286(l), 60 DCR 2064.)

Prior Codifications

1981 Ed., § 47-2406.

1973 Ed., § 47-2806.

Section References

This section is referenced in § 47-2409.

Effect of Amendments

The 2013 amendment by D.C. Law 19-317 substituted “not more than the amount set forth in [§ 22-3571.01]” for “not more than $10,000” in (f).

Cross References

Administrative procedure, generally, see § 2-501 et seq.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 286(l) of the Criminal Fine Proportionality Emergency Act of 2013 (D.C. Act 20-45, April 1, 2013, 60 DCR 5400, 20 DCSTAT 1300).

Editor's Notes

Applicability of D.C. Law 19-317: Section 401 of D.C. Law 19-317 provided that the act shall apply only to offenses committed on or after June 11, 2013.

§ 47–2407. Redemption of stamps.

(a) The Mayor may, upon receipt of satisfactory evidence of the facts, redeem any stamps, issued under this chapter, which have been spoiled, destroyed, or rendered useless or unfit for the purpose intended, or for which the owner may have no use. Such redemption may be made either by allowing the owner of such stamps a credit on the purchase of new stamps equal to the amount paid for the spoiled, destroyed, or useless stamps or by refunding such amount; provided, that no refund shall be made in those cases where the owner can be made whole by allowing a credit on the purchase of new stamps. No refund or allowance shall be made under this section unless the owner of such stamps has filed a written claim, under oath, for such refund or allowance with the Mayor within 6 months after the stamps were spoiled, destroyed, or rendered useless or unfit for the purposes intended, or, in the case of the stamps for which the owner has no use, within 6 months after the purchase of such stamps.

(b) No refund or allowance shall be made until:

(1) The stamps so spoiled, destroyed, or rendered useless or unfit, or for which the owner has no use have been returned to the Mayor, or satisfactory proof has been made to the Mayor showing which such stamps cannot be returned; and

(2) If required by the Mayor, the person making the claim for such refund or allowance has satisfactorily traced the history of the stamps from their issuance to the filing of his claim.

(c) Notwithstanding the time limitations specified in subsection (a) of this section for the redemption of stamps, a claim for the redemption of unused stamps which are owned by licensed retailers or vending machine operators on the effective date of this chapter, other than stamps which were spoiled, destroyed, or rendered useless or unfit prior to the effective date of this chapter, shall be filed within 6 months after the effective date of this chapter. Stamps owned by licensed retailers and vending machine operators which were spoiled, destroyed, or rendered useless or unfit prior to the effective date of this chapter shall be subject to the time limitation for the redemption of such stamps specified in subsection (a) of this section. If the Mayor authorizes the continued affixation of stamps after the effective date of this chapter, which stamps were purchased by licensed retailers and vending machine operators prior to the effective date of this chapter, a claim for the redemption of such stamps shall be filed within the time prescribed by the Mayor.

§ 47–2408. Records; reports; returns.

(a) The Mayor may require licensed wholesalers, retailers, vending machine operators, and every other person liable for or exempt from the tax imposed by this chapter or otherwise subject to the provisions of this chapter or the regulations issued by the Mayor pursuant to this chapter, to keep, maintain, and preserve records, books, and other documents; to file reports, statements, and returns; and to comply with such regulations relating thereto as the Mayor may prescribe. The Mayor may require that any reports, statements, or returns be verified by oath. The records, books, and other documents which the Mayor requires to be kept, maintained, and preserved shall be made available for examination and copying by the Mayor at the place or places prescribed by him at the time specified in subsection (b) of this section.

(b) For purposes of ascertaining the correctness of any report, statement, or return; making a report, statement, or return where a complete and accurate report, statement, or return has not been filed; determining that all taxes due under this chapter have been properly paid; and determining compliance with the provisions of this chapter and the regulations issued hereunder, the Mayor may:

(1) Examine and copy any records, books, or other documents which may be relevant to such inquiry;

(2) Summon any person to appear before him at the time and place specified in the summons and produce such records, books, or other documents and give such testimony and answer such interrogatories, under oath, as may be relevant to such inquiry;

(3) Upon presenting appropriate credentials to the owner, operator, or agent in charge, enter any building or place during the usual business hours or any other time when such building or place is open:

(A) Where required records, books, or other documents are kept, maintained, or preserved for purposes of examining and copying such records, books, or other documents; and

(B) Where cigarettes or other tobacco product are manufactured, kept for sale, offered for sale, or sold by a licensed wholesaler, retailer, or vending machine operator; and

(4) Stop any conveyance that the Mayor has knowledge or reasonable cause to believe is carrying more than 200 cigarettes or other tobacco products with a value exceeding the wholesale price of 200 cigarettes and, upon presenting appropriate credentials to the operator of the conveyance, examine the invoices or delivery tickets for such cigarettes or other tobacco products and inspect the conveyance for contraband cigarettes or other tobacco products.

(c) Any owner, operator, or agent in charge of any building or place where required records, books, or other documents are kept, maintained, or preserved or where cigarettes or other tobacco product are manufactured, kept for sale, offered for sale, or sold by a licensed wholesaler, retailer, or vending machine operator who refuses to permit the Mayor, acting under the authority of subsection (b)(3) of this section, to enter and examine such records, books, or other documents or to inspect such cigarettes or other tobacco product, or who obstructs, impedes, or interferes with the Mayor while he is engaged in the performance of his official duties under subsection (b)(3) of this section shall, upon conviction thereof, be fined not more than the amount set forth in [§ 22-3571.01] or imprisoned for not more than 1 year, or both.

(d) Any person who, having been summoned, neglects or refuses to obey the summons issued as herein provided, shall, upon conviction thereof, be fined not more than the amount set forth in [§ 22-3571.01] or imprisoned for not more than 1 year, or both. If any person, having been summoned, neglects or refuses to obey the summons issued as herein provided, the Mayor may report that fact to the Superior Court of the District of Columbia, or 1 of the judges thereof, and that Court, or any judge thereof, is empowered to compel obedience of such summons to the same extent and under the same penalties as witnesses may be compelled to obey the subpoenas of that Court. Any failure to obey the order of the Court may be punished by the Court as a contempt thereof.

(e) No person shall willfully file an application for a license, permit, authorization, or refund; request for revision or abatement; claim for refund or allowance; or report, statement, or return; or keep or maintain any records, books, or other documents which are known to him to be false or fraudulent as to any material matter. No person shall willfully aid or assist in, or procure, counsel, or advise, the preparation, filing, or keeping of any applications, requests, claims, reports, statements, returns, records, books, or other documents which are false or fraudulent as to any material matter.

(f) Any person required to file any report, statement, or return or to keep, maintain, and preserve any records, books, or other documents, who fails to file a complete and accurate report, statement, or return on or before the date that such report, statement, or return is due (determined with regard to any extension of time for filing granted by the Mayor) or who fails to keep, maintain, and preserve complete and accurate records, books, or other documents, unless it is shown by such person that such failure is due to reasonable cause and not to neglect, shall pay a penalty of $10 for each day during which such failure continues. The provisions of §§ 47-412 [repealed] and 47-413 [repealed] shall be applicable to the tax imposed by this chapter, but the period of limitations upon assessment and collections shall be determined by § 47-4301.

(g) If any person required to keep, maintain, and preserve any records, books, or other documents relating to exempt sales or possessions of cigarettes or other tobacco product fails to keep, maintain, and preserve complete and accurate records, books, or other documents relating thereto, such sales and possessions shall, unless it is shown by such person that failure is due to reasonable cause and not to neglect, be deemed taxable sales and possessions.

(h) The Mayor may, upon written application made before the date prescribed for filing any report, statement, or return, grant a reasonable extension of time for filing the report, statement or return required by this chapter, whenever good cause exists for such extension.

(May 27, 1949, 63 Stat. 139, ch. 146, title VI, § 609; Mar. 10, 1982, D.C. Law 4-71, § 2, 28 DCR 5243; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; June 9, 2001, D.C. Law 13-305, § 406(rr), 48 DCR 334; June 11, 2013, D.C. Law 19-317, § 286(m), 60 DCR 2064; Feb. 26, 2015, D.C. Law 20-155, § 7012(e)(8), 61 DCR 9990.)

Prior Codifications

1981 Ed., § 47-2408.

1973 Ed., § 47-2808.

Effect of Amendments

D.C. Law 13-305, in the second sentence of subsec. (f), substituted “this chapter, but the period of limitations upon assessment and collections shall be determined by § 47-4301” for “this chapter”.

The 2013 amendment by D.C. Law 19-317 substituted “not more than the amount set forth in [§ 22-3571.01]” for “not more than $1,000” in (c) and (d).

The 2015 amendment by D.C. Law 20-155 added “or other tobacco products” in (b)(3)(B); rewrote (4); and added “or other tobacco product” in (c) and (g).

Cross References

Tax rates, records and surplus funds, authority of Council to change certain tax rates, see § 47-504.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 286(m) of the Criminal Fine Proportionality Emergency Act of 2013 (D.C. Act 20-45, April 1, 2013, 60 DCR 5400, 20 DCSTAT 1300).

For temporary (90 days) amendment of this section, see § 7022(e)(8) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 7012(e)(8) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see § 7012(e)(8) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

Editor's Notes

Applicability of D.C. Law 19-317: Section 401 of D.C. Law 19-317 provided that the act shall apply only to offenses committed on or after June 11, 2013.

§ 47–2409. Seizure and forfeiture of property.

(a) The following shall be subject to seizure by the Mayor or any law enforcement officer of the District and to forfeiture to the District:

(1) All cigarettes or other tobacco product found in any place in the District at such times and under such circumstances that the taxes levied and imposed by this chapter should have been paid and on which such taxes have not been paid as required by this chapter or which do not bear proper evidence that such taxes have been paid;

(2) All cigarettes or other tobacco product, conveyances, and equipment or devices subject to seizure and forfeiture under § 47-2405;

(3) All cigarettes or other tobacco product manufactured for sale, kept for sale, offered for sale, displayed for sale, or sold in violation of § 47-2404 or the terms and conditions of a license issued under such section and all money collected in connection with the sale of such cigarettes or other tobacco product;

(4) All unstamped or improperly stamped cigarettes or other tobacco product possessed or sold by licensed retailers or vending machine operators in violation of § 47-2402(e);

(5) All cigarette tax stamps possessed by licensed retailers and vending machine operators in violation of § 47-2402(e) or sold or transferred, or offered for sale or transfer, in violation of § 47-2402(i);

(6) All vending machines which are operated in violation of § 47-2404 or the terms and conditions of a license under such section or which contain cigarettes or other tobacco product described in paragraph (1) of this subsection, including all cigarettes or other tobacco product, whether described in paragraph (1) of this subsection or not, and money contained therein;

(7) All altered, forged, counterfeited, cut, torn, removed, prepared, washed, or restored stamps as described in § 47-2406; all cigarettes or other tobacco product to which such stamps are affixed and all materials and equipment used, or intended to be used, to manufacture or produce such stamps;

(8) All metering devices possessed with authorization from the Mayor and used or possessed in violation of the terms and conditions imposed by the Mayor;

(9) All raw materials or equipment of any kind which are used, or intended for use, in manufacturing or packaging cigarettes or other tobacco product in violation of this chapter;

(10) All property which is used, or intended for use, as a container for property described in paragraph (1), (3), (4), (5), or (7) of this subsection;

(11) All books or records used, or intended for use in violation of this chapter;

(12) All money which has been used, or is intended for use, in violation of this chapter; and

(13) All conveyances, including aircraft, vehicles, or vessels, or any other property which are used to transport or conceal, or intended for use in transporting or concealing, or in any manner used to facilitate the transportation or concealment of, property described in paragraphs (1), (3), (4), (7), and (9) of this subsection.

(b) The following conveyances shall not be subject to forfeiture under this section:

(1) A conveyance used by any person as a common carrier in the transaction of business as a common carrier, unless it appears that the owner or other person in charge of the conveyance was a consenting party, or privy to the violation of this chapter on account of which the conveyance was seized; or

(2) A conveyance that is subject to seizure and forfeiture under this section by reason of any act committed, or omission established by the owner thereof, to have been committed or omitted by any person other than such owner, while such conveyance was unlawfully in the possession of a person other than the owner, in violation of the criminal laws of the United States, the District, or any other state.

(c) All property which is seized under subsection (a) of this section shall be promptly delivered to the Mayor and placed under seal, or removed to a place designated by the Mayor. Such property shall be proceeded against in the Superior Court of the District of Columbia by libel action brought in the name of the District of Columbia by the Attorney General for the District of Columbia or any of his assistants and shall, unless good cause be shown to the contrary, be forfeited to the District; provided, that such property shall not be subject to replevin, but is deemed to be in the custody of the Mayor subject only to the orders, decrees, and judgments of the court having jurisdiction over the forfeiture proceedings, and; provided, further, that notwithstanding the provisions of this section, whenever such property is subject to seizure and forfeiture on account of failure to comply with the provisions of this chapter and the Mayor determines that such failure was excusable, the Mayor may return the property to the owner or owners thereof. Whenever the Mayor determines that any property seized under subsection (a) of this section is liable to perish or become greatly reduced in price or value by keeping such property until the completion of forfeiture proceedings, the Mayor may:

(1) Appraise the property and return the property to the owner thereof upon the owner paying any tax due under this chapter and giving satisfactory bond in an amount equal to the appraised value to abide the final order, decree, or judgment of the court having jurisdiction over the forfeiture proceedings, and to pay the amount of such appraised value to the Mayor as may be ordered and directed by such court; or

(2) If the owner neglects or refuses to pay such tax and give such bond, sell such property in the manner provided by the Mayor by regulation, and the proceeds of the sale of such property, after deducting the reasonable costs of the seizure and sale, shall be paid to the court to abide its final order, decree, or judgment.

(d) After the final order, decree, or judgment is made, forfeited property shall be made available for the official use of any agency of the District government, disposed of by public auction, or otherwise disposed of as the Mayor may prescribe. If there is a bona fide prior lien against such forfeited property, the Mayor may (1) make payment of such lien and retain the property for official use, or (2) dispose of such property by public auction, and the proceeds of the sale of such property shall be made available, first, for the payment of any tax due under this chapter and all expenses incident to the seizure, forfeiture, and sale of such property, and, second, for the payment of such lien, and the remainder shall be deposited with the Treasurer of the District of Columbia; provided, that no payment of a lien shall be made where the lienor was a consenting party or privy to the violation of this chapter on account of which the property was seized and forfeited. To the extent necessary, liens against forfeited property shall, on good cause shown by the lienor, be transferred from the property to the proceeds of the sale of the property.

(e) Whenever any cigarettes or other tobacco product are found in any vending machine in violation of the provisions of § 47-2402(g), the Mayor shall seal the machine to prevent the sale or removal of any cigarettes or other tobacco product from the machine until such time as the violation is corrected in the presence of the Mayor. The operator of such vending machine shall, upon conviction thereof, be fined not more than the amount set forth in [§ 22-3571.01] or imprisoned for not more than 1 year, or both; provided, that if the vending machine contains cigarettes or other tobacco product described in paragraph (1) of subsection (a) of this section, the operator shall, in addition, be subject to the penalties imposed by the other provisions of this chapter. Any person, other than the Mayor, who removes or otherwise tampers with any seals placed on a vending machine by the Mayor shall be subject to the penalties imposed by § 47-2414 [repealed].

(f) Any person whose property has been seized and forfeited under this section shall not be relieved from any other penalty imposed by this chapter.

(May 27, 1949, 63 Stat. 139, ch. 146, title VI, § 610; Oct. 28, 1949, 63 Stat. 972, ch. 782, title XI, § 1106(a); Mar. 3, 1979, D.C. Law 2-139, § 3205(r), 25 DCR 5740; Mar. 10, 1982, D.C. Law 4-71, § 2, 28 DCR 5243; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Apr. 13, 2005, D.C. Law 15-354, § 73(i)(1), 52 DCR 2638; July 23, 2010, D.C. Law 18-189, § 4(c), 57 DCR 3019; June 11, 2013, D.C. Law 19-317, § 286(n), 60 DCR 2064.)

Prior Codifications

1981 Ed., § 47-2409.

1973 Ed., § 47-2809.

Section References

This section is referenced in § 1-636.02, § 7-1803.06, § 47-2405, and § 47-2423.

Effect of Amendments

D.C. Law 15-354 substituted “Attorney General for the District of Columbia” for “Corporation Counsel”.

D.C. Law 18-189 substituted “cigarettes or other tobacco product” for “cigarettes”; and added subsecs. (b)(3)(D) and (E).

The 2013 amendment by D.C. Law 19-317 substituted “not more than the amount set forth in [§ 22-3571.01]” for “not more than $1,000” in (e).

Cross References

Effective date provisions, see § 1-636.02.

Metropolitan police, Property Clerk, return of property to owner, property disposition, see § 5-119.06.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 286(n) of the Criminal Fine Proportionality Emergency Act of 2013 (D.C. Act 20-45, April 1, 2013, 60 DCR 5400, 20 DCSTAT 1300).

Editor's Notes

Applicability of D.C. Law 19-317: Section 401 of D.C. Law 19-317 provided that the act shall apply only to offenses committed on or after June 11, 2013.

§ 47–2410. Deficiency in tax.

(a) The Mayor may determine, redetermine, assess, or reassess any tax due under this chapter. Assessments of any deficiencies in the tax due under this chapter, or any interest and penalties thereon, shall be governed by § 47-4312.

(b) Any assessment of tax, penalties, and interest that has become final pursuant to § 47-4312 shall be due and payable within 10 days after service of a final assessment by the Mayor or service of a final order by the Office of Administrative Hearings, as applicable.

(May 27, 1949, 63 Stat. 139, ch. 146, title VI, § 611; July 8, 1963, 77 Stat. 77, Pub. L. 88-60, § 1; July 29, 1970, 84 Stat. 570, 581, Pub. L. 91-358, title I, §§ 155(a), 161(d)(1); Mar. 10, 1982, D.C. Law 4-71, § 2, 28 DCR 5243; Oct. 5, 1985, D.C. Law 6-42, § 443, 32 DCR 4450; Mar. 8, 1991, D.C. Law 8-237, § 2(q), 38 DCR 314; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Dec. 7, 2004, D.C. Law 15-217, § 4(e), 51 DCR 9126.)

Prior Codifications

1981 Ed., § 47-2410.

1973 Ed., § 47-2810.

Section References

This section is referenced in § 47-2413.

Effect of Amendments

D.C. Law 15-217 rewrote subsecs. (a) and (b).

Emergency Legislation

For temporary (90 day) amendment of section, see § 3(e) of Office of Administrative Hearings Establishment Emergency Amendment Act of 2004 (D.C. Act 15-513, August 2, 2004, 51 DCR 8976).

For temporary (90 day) amendment of section, see § 3(e) of Office of Administrative Hearings Establishment Congressional Review Emergency Amendment Act of 2004 (D.C. Act 15-553, October 26, 2004, 51 DCR 10359).

§ 47–2411. Redemption of cigarette or alcoholic beverage tax stamps.

(a) Where any cigarette or alcoholic beverage tax stamps issued under District of Columbia tax laws have been spoiled, destroyed, or rendered useless or unfit for the purpose intended, or for which the owner may have no use, the amount paid for such stamps may be refunded within the limit of appropriations therefor, or allowed as a credit on the purchase of new stamps. No such refund or allowance shall be made unless the owner of such stamps shall file a written claim therefor with the Mayor of the District of Columbia or his designated agent within the time prescribed in this section and unless the Mayor or his designated agent upon receipt of satisfactory evidence of the facts, and subject to regulations prescribed by the Council of the District of Columbia, certifies that such refund or allowance is just and equitable.

(b) No refund or allowance shall be made in any case (1) until the stamps so spoiled or rendered useless shall have been returned to the Mayor or his designated agent, (2) until satisfactory proof has been made to the Mayor or his designated agent showing the reason why the same cannot be returned, or (3) if so required by the Mayor or his designated agent, unless the person presenting the same can satisfactorily trace the history of said stamps from their issuance to the filing of his claim as aforesaid; provided, that no refund shall be made in those cases where the owner may be made whole by allowing him a credit on the purchase of new stamps, and provided further, that no claim for a refund, or allowance for such stamps, shall be allowed unless presented within 6 months after the stamps have been spoiled, destroyed, or rendered useless or unfit for the purpose intended, or, in the case of stamps for which the owner may have no use, within 6 months from the date of purchase thereof, except that as to stamps which have been spoiled, destroyed, or rendered useless or unfit for the purpose intended, or for which the owner may have no use, prior to June 3, 1954, a claim for a refund or allowance for credit may be filed within 6 months after June 3, 1954.

§ 47–2411.01. Penalty; interest. [Repealed]

Repealed.

(May 27, 1949, 63 Stat. 139, ch. 146, title VI, § 612; Mar. 10, 1982, D.C. Law 4-71, § 2, 28 DCR 5243; Feb. 28, 1987, D.C. Law 6-209, § 406, 34 DCR 689; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; June 9, 2001, D.C. Law 13-305, § 406(ss)(2), 48 DCR 334.)

Prior Codifications

1981 Ed., § 47-2411.1.

Effective Dates

Section 601(b) of D.C. Law 6-209 provided that title III and sections 401, 402, 404, 405 and 406 of the act shall take effect on October 1, 1987.

Editor's Notes

§ 47–2412. Refunds.

Where any tax, penalty, or interest has been erroneously or illegally collected by the Mayor, the tax, penalty, or interest shall be refunded if an application for such refund, under oath, is filed with the Office of Administrative Hearings within 1 year after the date of the payment of such tax. An application for a refund may be filed only by the person upon whom such tax, penalty, or interest was imposed and who has actually paid the tax, penalty, or interest. An application for a refund shall be deemed a request for revision or abatement of an assessment. Upon filing of a valid application for refund, the Office of Administrative Hearings shall either (1) grant the application, or (2) grant the applicant a hearing. After such hearing, the Office of Administrative Hearings shall make findings, grant or deny the application for a refund in accordance with such findings, and notify the applicant of the findings and decision of the Office of Administrative Hearings by regular mail. This section does not authorize the filing of a request for a hearing with respect to any tax, penalty, or interest that was, or could have been, at issue in any prior proceeding that was conducted by the Superior Court of the District of Columbia or the Office of Administrative Hearings.

(May 27, 1949, 63 Stat. 139, ch. 146, title VI, § 613; Mar. 10, 1982, D.C. Law 4-71, § 2, 28 DCR 5243; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Dec. 7, 2004, D.C. Law 15-217, § 4(f), 51 DCR 9126.)

Prior Codifications

1981 Ed., § 47-2412.

Effect of Amendments

D.C. Law 15-217 rewrote the section which had read as follows: “Where any tax, penalty, or interest has been erroneously or illegally collected by the Mayor, the tax, penalty, or interest shall be refunded if an application for such refund, under oath, is filed with the Mayor within 1 year after the date of the payment of such tax. An application for a refund may be filed only by the person upon whom such tax, penalty, or interest was imposed and who has actually paid the tax, penalty, or interest. An application for a refund shall be deemed a request for revision or abatement of an assessment. Upon filing of a valid application for refund, the Mayor shall either (1) grant the application, or (2) grant the applicant a hearing. After such hearing, the Mayor shall make findings, grant or deny the application for a refund in accordance with such findings, and notify the applicant of the findings and decision of the Mayor by regular mail.”

Emergency Legislation

For temporary (90 day) amendment of section, see § 3(f) of Office of Administrative Hearings Establishment Emergency Amendment Act of 2004 (D.C. Act 15-513, August 2, 2004, 51 DCR 8976).

For temporary (90 day) amendment of section, see § 3(f) of Office of Administrative Hearings Establishment Congressional Review Emergency Amendment Act of 2004 (D.C. Act 15-553, October 26, 2004, 51 DCR 10359).

§ 47–2413. Appeals.

Except as provided in § 47-4312, any person, (1) aggrieved by a final determination of tax, or (2) aggrieved by a denial of a claim for refund (other than a refund of tax finally determined under § 47-2410), may, within 6 months from the date of the final determination or from the date of denial of the claim for refund, appeal to the Superior Court of the District of Columbia in the same manner and to the same extent as set forth in §§ 47-3303, 47-3304, 47-3306, 47-3307, and 47-3308.

(May 27, 1949, 63 Stat. 139, ch. 146, title VI, § 614; Mar. 10, 1982, D.C. Law 4-71, § 2, 28 DCR 5243; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Dec. 7, 2004, D.C. Law 15-217, § 4(g), 51 DCR 9126.)

Prior Codifications

1981 Ed., § 47-2413.

Effect of Amendments

D.C. Law 15-217 substituted “Except as provided in § 47-4312, any” for “Any”.

Emergency Legislation

For temporary (90 day) amendment of section, see § 3(g) of Office of Administrative Hearings Establishment Emergency Amendment Act of 2004 (D.C. Act 15-513, August 2, 2004, 51 DCR 8976).

For temporary (90 day) amendment of section, see § 3(g) of Office of Administrative Hearings Establishment Congressional Review Emergency Amendment Act of 2004 (D.C. Act 15-553, October 26, 2004, 51 DCR 10359).

§ 47–2414. Penalties. [Repealed]

Repealed.

§ 47–2415. Regulations.

The Mayor may issue regulations necessary to carry out the provisions of this chapter.

§ 47–2416. Severability.

If any provision of this chapter, or the application thereof to any person or circumstance, is held invalid, the remainder of this chapter, and the application of such provisions to other persons or circumstances shall not be affected thereby.

§ 47–2417. Effective date.

The provisions of this chapter shall take effect on April 9, 1982.

§ 47–2418. Cigarette tax stamps purchased or held prior to effective date; payment of tax; records.

(a) Any wholesaler, retailer, or vending machine operator licensed under § 47-2404(b) who has purchased any cigarette tax stamps, affixed to a cigarette package or otherwise, prior to July 1, 1993, or that are otherwise held on July 1, 1993, shall:

(1) Pay to the Mayor, in accordance with paragraph (2) of this subsection, an amount equal to the difference between the amount of tax represented by cigarette tax stamps purchased prior to July 1, 1993, and held on July 1, 1993, and the amount of tax that an equal number of cigarette tax stamps would represent if purchased on July 1, 1993;

(2) File with the Mayor, within 20 days after July 1, 1993, on a form to be prescribed by the Mayor, a statement showing the number of cigarette tax stamps held by him or her as of July 1, 1993, and pay to the Mayor, the amount specified in paragraph (1) of this subsection; and

(3) Keep and preserve for the 12-month period immediately following July 1, 1993, the inventories and other records that form the basis for the information furnished to the Mayor under paragraph (2) of this subsection.

(b) For the purposes of this section, a tax stamp shall be considered to be held by a wholesaler, retailer, or vending machine operator:

(1) If title is passed to the wholesaler, retailer, or vending machine operator, whether or not delivery to him or her has been made; and

(2) If title has not at any time been transferred to any person other than a wholesaler, retailer, or vending machine operator.

(d) Prosecutions under this section shall be brought on information in the Superior Court of the District of Columbia by the Attorney General for the District of Columbia.

(May 27, 1949, ch. 146, title VI, § 618; as added Feb. 28, 1987, D.C. Law 6-198, § 2(b), 34 DCR 515; Aug. 17, 1991, D.C. Law 9-31, § 2(b), 38 DCR 4218; Sept. 10, 1992, D.C. Law 9-145, § 109(b), 39 DCR 4895; Sept. 30, 1993, D.C. Law 10-25, § 113(b), 40 DCR 5489; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Apr. 13, 2005, D.C. Law 15-354, § 73(i)(2), 52 DCR 2638.)

Prior Codifications

1981 Ed., § 47-2418.

Effect of Amendments

D.C. Law 15-354 substituted “Attorney General for the District of Columbia” for “Corporation Counsel”.

Effective Dates

Section 3(b) of D.C. Law 6-198 provided that: “The provisions of section 2 shall not operate before the 1st day of the 1st month that begins more than 30 days after February 28, 1987.”.

Editor's Notes

§ 47–2419. Prohibitions on gray market cigarettes.

No person shall:

(1) Sell or distribute in the District, to acquire, hold, own, possess, or transport, for sale or distribution in the District, or to import, or cause to be imported, into the District for sale or distribution in the District:

(A)(i) Any cigarettes the package of which bears a statement, label, stamp, sticker, or notice indicating that the manufacturer did not intend the cigarettes to be sold, distributed, or used in the United States, including labels stating “For Export Only,” “U.S. Tax-Exempt,” “For Use Outside U.S.,” or similar wording; or

(ii) Any cigarettes the package of which does not comply with:

(I) All requirements imposed by or under federal law regarding warnings and other information on packages of cigarettes manufactured, packaged, or imported for sale, distribution, or use in the United States, including the precise warning labels specified in section 4 of the Federal Cigarette Labeling and Advertising Act, approved July 27, 1965 (79 Stat. 283; 15 U.S.C. § 1333) (“1965 Act”); or

(II) All federal trademark and copyright laws;

(B) Any cigarettes imported into the United States after December 31, 1999, in violation of section 5754 of the Internal Revenue Code of 1986, approved October 22, 1986 (111 Stat. 673; 26 U.S.C. § 5754), or any other federal law, or implementing regulations;

(C) Any cigarettes that the person otherwise knows, or has reason to know, that the manufacturer did not intend to be sold, distributed, or used in the United States; or

(D) Any cigarettes for which there has not been submitted to the Secretary of the U. S. Department of Health and Human Services the list of the ingredients added to tobacco in the manufacture of the cigarettes required by section 7 of the Federal Cigarette Labeling and Advertising Act, approved October 12, 1984 (98 Stat. 2203; 15 U.S.C. § 1335a) (“1984 Act”).

(2) Alter the package of any cigarettes, before sale or distribution to the ultimate consumer, so as to remove, conceal, or obscure:

(A) Any statement, label, stamp, sticker, or notice described in paragraph (1)(A) of this section; or

(B) Any health warning that is not specified in, or does not conform with the requirements of, section 4 of the 1965 Act;

(3) To affix any stamp, required under this chapter, to the package of any cigarettes described in paragraph (1) of this section or altered in violation of paragraph (2) of this section.

§ 47–2420. Documentation.

On the first business day of each month, each person licensed to affix the state tax stamp to cigarettes shall file with the Mayor, for all cigarettes imported into the United States to which the person has affixed the tax stamp in the preceding month:

(1) A copy of the permit issued under section 5713 of the Internal Revenue Code of 1986, approved October 22, 1986 (68A Stat 712; 26 U.S.C. § 5713), to the person importing the cigarettes into the United States allowing the person to import the cigarettes, and the customs form containing, with respect to the cigarettes, the internal revenue tax information required by the U.S. Bureau of Alcohol, Tobacco and Firearms;

(2) A statement, signed by the person under the penalty of perjury, which shall be treated as confidential by the Mayor and exempt from disclosure under subchapter II of Chapter 5 of Title 2, identifying the brand and brand styles of the cigarettes, and the person, if any, to whom the cigarettes have been conveyed for resale; and

(3) A statement, signed by an officer of the manufacturer or importer under penalty of perjury, certifying that the manufacturer or importer has complied with the package health warning and ingredient reporting requirements of section 4 of the 1965 Act and section 7 of the 1984 Act with respect to the cigarettes.

§ 47–2421. Criminal penalties.

Any person who commits any of the acts prohibited by § 47-2419, either knowingly or having reason to know he is doing so, or who fails to comply with any of the requirements of § 47-2420, shall, upon conviction thereof, be fined not more than the amount set forth in [§ 22-3571.01] or imprisoned for not more than 3 years, or both.

(Apr. 3, 2001, D.C. Law 13-225, § 2(c), 48 DCR 35; June 19, 2001, D.C. Law 13-313, § 16(c)(2), 48 DCR 1873; Apr. 13, 2005, D.C. Law 15-354, § 73(i)(3), 52 DCR 2638; June 11, 2013, D.C. Law 19-317, § 286(o), 60 DCR 2064.)

Effect of Amendments

D.C. Law 13-313 inserted the section symbol in the section heading.

D.C. Law 15-354 substituted “fined not more than $5,000 or imprisoned for not more than 3 years, or both” for “subject to the penalties under § 47-2414(a)”.

The 2013 amendment by D.C. Law 19-317 substituted “not more than the amount set forth in [§ 22-3571.01]” for “not more than $5,000”.

Editor's Notes

Applicability of D.C. Law 19-317: Section 401 of D.C. Law 19-317 provided that the act shall apply only to offenses committed on or after June 11, 2013.

§ 47–2422. Civil penalties and administrative sanctions.

(a) The Mayor may revoke, suspend, or deny under § 47-2405 the general sales license endorsement on the master business license of any cigarette or other tobacco product dealer for a violation of this chapter or any implementing rule promulgated by the Mayor as provided under § 47-2415.

(a-1) Civil fines, penalties, and fees may be imposed as alternative sanctions for any infraction of § 47-2404, or any rules or regulations issued under the authority of that section, pursuant to Chapter 18 of Title 2. Adjudication of any infraction of § 47-2404, or any rules or regulations issued under the authority of that section, shall be pursuant to Chapter 18 of Title 2.

(b) The Mayor may (1) impose a civil penalty in an amount not to exceed the greater of 500% of the retail value of the cigarettes or other tobacco product involved or $5,000 for a violation of this chapter, or (2) assess tax due and interest on any product acquired, possessed, sold, or offered for sale in violation of this chapter.

(c) The license or authorization to affix stamps of an agent, distributor, dealer, or person found liable for a civil penalty under subsection (b)(1) of this section on 2 or more occasions shall be revoked and the agent, distributor, dealer, or person shall not be eligible for a license or authorized by the District to affix tax stamps under this chapter for one year.

(Apr. 3, 2001, D.C. Law 13-225, § 2(c), 48 DCR 35; June 19, 2001, D.C. Law 13-313, § 16(c)(3), 48 DCR 1873; July 23, 2010, D.C. Law 18-189, § 4(d), 57 DCR 3019; Feb. 26, 2015, D.C. Law 20-155, § 7012(e)(9), 61 DCR 9990.)

Effect of Amendments

D.C. Law 13-313 inserted the section symbol in the section heading.

D.C. Law 18-189 added subsec. (a-1); and, in subsec. (b), substituted “cigarettes or other tobacco product” for “cigarettes”.

The 2015 amendment by D.C. Law 20-155 added “or other tobacco product” in (a).

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7022(e)(9) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 7012(e)(9) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see § 7012(e)(9) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

§ 47–2423. Seizure and forfeiture of gray market cigarettes.

Cigarettes that are acquired, held, owned, possessed, transported in, imported into, or sold or distributed in the District in violation of § 47-2419 shall be deemed contraband and shall be subject to seizure, forfeiture, and destruction by the Mayor under § 47-2409. The cigarettes shall be deemed contraband whether the violation of this chapter is knowing or otherwise.

§ 47–2424. Unfair cigarette sales.

For the purposes of this chapter, cigarettes imported or reimported into the United States for sale or distribution under a trade name, trade dress, or trademark that is the same as, or is confusingly similar to, a trade name, trade dress, or trademark used for cigarettes manufactured in the United States for sale or distribution in the United States shall be presumed to have been purchased outside of the ordinary channels of trade.

§ 47–2425. General provisions.

(a) For the purpose of enforcing this chapter, the Mayor may request or share information with any state or local agency, federal agency, or any agency of a state or local agency.

(b) Any person who acquires, owns, possesses, transports into, or imports into the District cigarettes or other tobacco products which are subject to this chapter shall, with respect to such cigarettes or other tobacco products, maintain and keep all records required under this chapter and District law.

(c) In addition to any other remedy provided by law, any person who suffers economic injury or commercial harm as a result of a violation of this chapter may bring an action for injunctive or other equitable relief for a violation of this chapter, actual damages, if any, sustained by reason of the violation, and, as determined by the court, interest on the damages from the date of the complaint and taxable costs. If the trier of facts finds that the violation was willful, it may increase the damages to an amount not exceeding 3 times the actual damages sustained by reason of the violation.

(d) The Mayor shall provide a copy of the Gray Market Cigarette Prohibition Act of 2000, effective April 3, 2001, (D.C. Law 13-225; 48 DCR 35), to all District licensed wholesale and retail sellers of cigarettes. The Mayor should also provide translations of the act, in Spanish, Chinese, Korean, Vietnamese, and other languages as necessary, to license applicants. These translations should be prepared in collaboration with the Office on Latino Affairs and the Office on Asian and Pacific Islander Affairs.

(Apr. 3, 2001, D.C. Law 13-225, § 2(c), 48 DCR 35; June 19, 2001, D.C. Law 13-313, § 16(c)(6), 48 DCR 1873; Mar. 2, 2007, D.C. Law 16-191, § 78, 53 DCR 6794; Feb. 26, 2015, D.C. Law 20-155, § 7012(e)(10), 61 DCR 9990.)

Effect of Amendments

D.C. Law 13-313 inserted the section symbol in the section heading.

D.C. Law 16-191, in subsec. (d), deleted “Spanish,” following “Korean”.

The 2015 amendment by D.C. Law 20-155 added “or other tobacco products” throughout (b).

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7022(e)(10) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 7012(e)(10) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see § 7012(e)(10) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

§ 47–2426. Application of §§ 47-2419 through 47-2425.

(a) Sections 2419 through 2425 [§§ 47-2419 through 47-2425] shall not apply to cigarettes which, in accordance with section 555 of An Act to provide revenue, to regulate commerce with foreign countries, to encourage the industries of the United States, to protect labor and for other purposes, approved June 17, 1930 (46 Stat. 743; 19 U.S.C. § 1555(b)), and any implementing regulations, are (1) allowed to be imported or brought into the United States, or (2) sold or intended to be sold as duty-free merchandise by a duty-free sales enterprise; provided, that this section shall apply to any such cigarettes that are brought back into the customs territory for resale within the customs territory.

(b) The penalties provided in this chapter are in addition to any other penalties imposed under law.