§ 62-303. Methods of collection; reports.

(a)

The tax imposed by this article shall be evidenced by the use of a stamp and shall be paid by each dealer or retailer liable for the tax at the time the stamps are purchased from the town treasurer. The stamps shall be affixed in such a manner that their removal will require continued application of water or steam. Each dealer or retailer liable for the tax is hereby required, and it shall be his duty, to collect and pay the tax.

(b)

All unstamped cigarette packs in the possession of any retailer in the town on the effective date of this article shall be inventoried and reported to the treasurer not later than 12:00 p.m. on July 12, 2010. The treasurer shall provide the report form, and the retailer shall remit the tax for the unstamped packs along with the report. Such reporting shall continue monthly until all unstamped cigarette packs have been sold. Any unstamped cigarette packs not reported and the tax not paid may be confiscated by the treasurer.

(c)

It shall be the duty of each dealer or retailer liable for the tax to report monthly to the treasurer separately the following information:

(1)

The quantity of stamped cigarettes sold or delivered, specifying recipients, during the period requested by the treasurer;

(2)

The quantity of stamps on hand, both affixed and unaffixed, on the last day of the period of request and the quantity of stamps or stamped cigarettes received during the period; and

(3)

Such further information from any appropriate party as the treasurer may require for the proper administration and enforcement of this article.

(d)

When, upon examination and audit of any invoices, records, books, canceled checks, or other memoranda touching on the purchase, sale, receipt, storage, or possession of cigarette products taxed herein, any dealer or retailer liable for the tax is unable to furnish evidence to the treasurer of sufficient tax payments and stamp purchases to cover cigarettes that were sold, used, stored, received, purchased, or possessed by him, the prima facie presumption shall arise that such cigarettes were received, sold, used, stored, purchased, or possessed by him without the proper tax having been paid. The treasurer shall, from the results of such examination and audit based upon such direct or indirect information available, assess the tax due and unpaid.

(e)

The dealer or retailer liable for the tax shall be notified by certified mail or hand delivery of such deficiency and such tax, penalty, and interest assessed shall be due and payable within ten days after notice of such deficiency has been issued.

(f)

It shall be the duty of every dealer and retailer in the town to keep complete records for the current year and the three preceding calendar years of all cigarettes delivered or sold by such dealer or retailer and to make all such records available for examination by the treasurer, or other authorized personnel, upon demand, at any and all reasonable times.

(Ord. of 5-11-2010, eff. 7-1-2010)

(Ord. of 5-11-2010, eff. 7-1-2010)