61A-10.0021: Stamping Agent – Requirements
PURPOSE AND EFFECT: The purpose and effect of the proposed rule amendment is to clarify how the estimated monthly tax liability is determined as it relates to calculating the amount of surety bond required for cigarette stamping agents.
SUMMARY: The subject area to be addressed in this rule is the monthly tax liability upon which the required surety bond is calculated.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: The agency has determined that this rule will ___ or will not _X_ have an impact on small business. A SERC has ___ or has not _X_ been prepared by the agency.
OTHER RULES INCORPORATING THIS RULE: None.
AFFECT ON THOSE OTHER RULES: None.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 210.10, 210.05 FS.
LAW IMPLEMENTED: 210.01, 210.05, 210.08 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN FAW.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Ben Pridgeon, Revenue Program Administrator, Department of Business and Professional Regulation, 1940 North Monroe Street, Tallahassee, Florida 32399, (850)414-6172
THE FULL TEXT OF THE PROPOSED RULE IS:
61A-10.0021 Stamping Agent – Requirements.
The Division shall authorize a wholesale dealer as a stamping agent to affix stamps to packages of cigarettes provided the dealer furnishes the Division with;
(1) An irrevocable letter of credit, certificate of deposit, unconditional guarantee contract, or a surety bond, issued by a solvent surety company registered to do business in this state, equal to 110% of the estimated monthly tax liability, but not less than $2,000, as required in Sections 210.05 and 210.08, F.S. The Division shall determine the estimated monthly tax liability based on the packs of unstamped cigarettes purchased for resale within the State of Florida, for which the stamps have been purchased on credit in lieu of cash payment.
(a) through (b) No change.
(c) Each month, an agent that has met the surety amount for credit liability may purchase additional stamps for cash on delivery, provided that the division receives the cash equivalent payment prior to sale of additional stamps.
(d) Payment for stamps must be made by certified check or the bank equivalent, or by electronic funds transfer, but not by cash currency.
(e)(c) Stamping agents will provide the Division with a continuation certificate of the surety when the stamping agents pay their surety premium.
(f)(d) If a surety instrument is cancelled, the stamping agent must cease operation.
(g)(e) Applicants shall properly execute and submit form DBPR ABT-6032, Division of Alcoholic Beverages and Tobacco Surety Bond Form, which may be obtained as specified in Rule 61A-5.001, F.A.C., and is incorporated herein by reference and effective (2/08). Instructions for filling out form DBPR ABT-6032 are provided in form DBPR ABT-6032i, Instructions for Completing DBPR ABT-6032, Division of Alcoholic Beverages and Tobacco Surety Bond Form, which may be obtained as specified in Rule 61A-5.001, F.A.C., and is incorporated herein by reference and effective (2/08).
(2) A letter from manufacturers and importers stating that they will ship to the applicant direct.
(3) A letter from the wholesale dealer requesting to be a stamping agent.
(4) If licensed as a stamping agent by another state, authorization from that state to purchase and affix that state’s tax indicia within the State of Florida.
Rulemaking Specific Authority 210.10 FS. Law Implemented 210.01, 210.021, 210.05, 210.08, 210.15, 210.40 FS. History–New 9-2-08, Amended________.