TOBACCO PRODUCT LICENSES
House Bill 5305
Sponsor: Rep. Lorence Wenke
Committee: Tax Policy
Complete to 1-15-04
A SUMMARY OF HOUSE BILL 5305 AS INTRODUCED 11-13-03
The bill would amend the Tobacco Products Tax Act to increase license fees by 50 percent and set the expiration date for each license at September 30, rather than June 30.
Under the act, a person is prohibited from purchasing, possessing, acquiring for resale, or selling a tobacco product as a manufacturer, wholesaler, or transporter, among others, without a license to do so. The table below lists the current license fee and the proposed fee.
|
License Type |
Current Fee |
Proposed Fee |
|
Wholesaler |
$100 |
$150 |
|
Secondary wholesaler |
$25 |
$37.50 |
|
Vending machine operator |
$25 |
$37.50 |
|
Unclassified Acquirer |
||
|
State of Michigan |
$0 |
$0 |
|
Retail importer of tobacco products other than cigarettes |
$10 |
$15 |
|
Retail importer of cigarettes |
$100 |
$150 |
|
Vending machine operating buying directly from manufacturer |
$100 |
$150 |
|
Manufacturer |
$100 |
$150 |
|
Any other importer |
$100 |
$150 |
|
Transportation Company |
$5 |
$7.50 |
|
Transporter |
$50 |
$75 |
The Department of Treasury would be authorized to issue licenses after the bill’s effective date with an expiration date of September 30 of the immediately following year.
MCL 205.423 and 205.424
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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.