DEPARTMENT OF TREASURY  
BUREAU OF REVENUE  
TOBACCO PRODUCTS TAX  
(By authority conferred on the revenue commissioner by section 13(2) Act No.327 of  
the Public Acts of 1993, as amended, being §205.433(2) of the Michigan Compiled  
Laws)  
R 205.451 Definitions.  
Rule 1. As used in these rules:  
(a) "Act" means Act No. 327 of the Public Acts of 1993, as amended, being  
§205.421 et seq. of the Michigan Compiled Laws.  
(b) "Licensed wholesaler or unclassified acquirer" means  
a
wholesaler or  
unclassified acquirer who possesses such license issued under the act by the department  
during the current licensing year and whose license is not suspended or revoked by  
the department.  
History: 1998 - 2000 AACS.  
R 205.452 Prescribed markings on cigarette boxes and shipping cases;  
resale and refund of returned cigarettes.  
Rule 2. (1) Licensed wholesalers and unclassified acquirers shall submit stamp  
orders on the form prescribed by the department. The department shall establish  
guidelines for ordering and the timing of shipments, and shall determine the mode of  
shipment of an order. On the day of shipment, the department shall fax notice of  
shipment to the wholesaler or unclassified acquirer.  
(2) Stamps given to a wholesaler or unclassified acquirer are on assignment from the  
department to the specific wholesaler or unclassified acquirer.  
(3) A licensed wholesaler of cigarettes who receives cigarettes from the  
manufacturer at a Michigan location from which deliveries to other states will be made  
will report all cigarettes received into its unstamped Michigan inventory. When  
cigarettes destined for another state are pulled from  
inventory for stamping and export, the cigarettes will be reported as a deduction  
on schedule C of the multiple schedule. Such licensed wholesaler may have in its  
possession stamps from other states as needed to perform its multistate stamping duties.  
The stamps for other states are to be segregated  
from Michigan stamps, and the wholesaler must be able to provide  
documentation to the department and its representatives of the unaffixed stamps that  
are in the wholesaler's possession.  
(4) A wholesaler or unclassified acquirer who possesses unaffixed stamps at the time  
its license is revoked or expired or at the time it discontinues the business of selling  
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cigarettes shall return all unaffixed stamps to the department within 14 calendar days  
of the date of license revocation, license expiration, or discontinuance of its business.  
(5) Beginning September 1, 1998, the refund to wholesalers and unclassified  
acquirers of the tax on cigarettes returned to manufacturers is allowed if all of the  
following conditions are met:  
(a) A cigarette pack returned to a wholesaler or unclassified acquirer by a secondary  
wholesaler, retailer, or vending machine operator before September  
1, 1998, for return to a manufacturer shall be kept separate from cigarettes returned  
to wholesalers on or after September 1, 1998.  
(b) A cigarette pack returned to a wholesaler or unclassified acquirer by a secondary  
wholesaler, retailer, or vending machine operator on or after September 1, 1998, for  
return to the manufacturer must bear the stamp prescribed by the department in order  
to qualify for refund or credit of the tax paid.  
(c) A refund claim for cigarettes held for return as of September 1, 1998, shall be  
submitted separately from any claims for cigarettes received for return on or after  
September 1, 1998.  
(6) A wholesaler or unclassified acquirer is liable for the amount of the face value  
of any stamps which are lost through negligence, theft, or mysterious disappearance  
or which are not otherwise accounted for in the records of the wholesaler or  
unclassified acquirer. The tax due shall be less the percentage compensation under  
section 7(3) of the act. The tax due shall be assessed in accordance with the provisions of  
Act No. 122 of the Public Acts of 1941, as amended, being §205.1 et seq. of the  
Michigan Compiled Laws.If identifiable stamps that have been lost through negligence,  
theft, or mysterious disappearance are recovered within 4 years of the date of mailing by  
the department, then credit will be given against the tax due, less the percentage  
compensation under section 7(3) of the act, if adequate proofs are submitted to the  
department.  
(7) Relating to the tax liability described under item (6) above, credit may be given  
against the tax due, less the percentage compensation, for the denominated value of  
stamps affixed to packs that have been destroyed by fire, flood, or other casualty  
before distribution. The wholesaler or unclassified acquirer must establish by clear and  
convincing evidence that the cigarettes were destroyed by fire, flood, or other  
casualty before distribution and must establish the denominated value of the affixed  
stamps. "Destroyed," as used in this subrule, refers to unaffixed stamps which can no  
longer be identified and affixed to cigarette packs, or stamps which are affixed to  
cigarette packs that no longer qualify for return to the manufacturer.  
History: 1998 - 2000 AACS.  
R 205.453 Manufacturers' representatives; permissions; limitations.  
Rule 3. Manufacturers' representatives may legally possess individual packs of  
cigarettes if the application is submitted to Tobacco Products Tax Division,  
Michigan Department of Treasury, Lansing, MI 48922, all of the permissions are  
obtained, and all of the following are met:  
(a) The application shall contain all of the following information:  
(i) The representative's name, address, and telephone number.  
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(ii) Make, model, and license number of the representative's vehicle.  
(iii) Counties in Michigan in which the representative will be working.  
(iv) States other than Michigan in which the representative will be working.  
(b) A manufacturer shall promptly notify the commissioner  
if  
the  
manufacturer's representative is no longer employed by the manufacturer or if there is  
any change in any representative's territory in the state of Michigan, name, address,  
telephone number, or vehicle make, model, or license number.  
History: 1998 - 2000 AACS.  
R 205.454 Stamping agents; permissions; limitations.  
Rule 4. (1) To be a stamping agent, a person shall comply with all of the following  
provisions:  
(a) Receive written authorization from the department.  
(b) Be licensed by the department as a wholesaler or unclassified acquirer.  
(c) Be appointed as an agent of 1 or more wholesalers or unclassified acquirers  
for the purpose of affixing stamps prescribed by the department to individual packs of  
cigarettes.  
(d) Submit to the department a current list of all persons for whom he or she acts as  
a stamping agent as these persons change.  
(e) Submit proof of insurance to indemnify the state for any lost or stolen stamps.  
(2) Each stamping agent shall keep separate records, by denomination, of stamps  
received, affixed, and in inventory at the end of each month for each wholesaler or  
unclassified acquirer, or both, for whom the agent acts as a stamping agent.  
(3) Upon the written request of a wholesaler or unclassified acquirer, the department  
may, at its discretion, ship stamps directly to the wholesaler's or unclassified acquirer's  
authorized stamping agent or allow the stamping agent to pick up a stamp order on  
behalf of the wholesaler or unclassified acquirer.  
(4) A stamping agent shall not give, sell, or lend an unaffixed stamp to another  
person and shall not accept, purchase, or borrow an unaffixed stamp from another  
person for whom the agent has not been authorized by the department to act as a  
stamping agent.  
(5) A stamping agent shall not affix a stamp received from a wholesaler or  
unclassified acquirer to another person's individual cigarette pack.  
(6) Upon notice from the department for proper administration of the act, a stamping  
agent shall not affix stamps for any wholesaler or unclassified acquirer whose license  
has been revoked or not renewed by the department and shall return any related  
unaffixed stamps to the department.  
(7) A stamping agent who discontinues acting as a stamping agent or  
discontinues business shall return any unaffixed stamps to the respective wholesaler or  
unclassified acquirer from whom the stamps were received within 14 calendar days of the  
date of discontinuance. The department must be provided with written notification of  
the date of return, the denomination of the stamps, and the respective numbers of stamps  
returned. The wholesaler or unclassified acquirer must certify receipt of the stamps in  
writing. If the wholesaler or unclassified acquirer has a revoked or expired license or  
has discontinued business, then the stamping agent shall return any unaffixed stamps to  
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the department within 14 calendar days of the date of his or her license revocation,  
expiration, or discontinuance and identify the related wholesaler or unclassified  
acquirer.  
History: 1998 - 2000 AACS.  
R 205.455 Rescission.  
Rule 5. R 205.411 of the Michigan Administrative Code, appearing on page 32 of  
the 1980 Annual Supplement to the 1979 Michigan Administrative Code, is rescinded.  
History: 1998 - 2000 AACS.  
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