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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