Ga. Comp. R. & Regs. R. 560-8-1-.01 - Definitions - General

(1) As used in these rules:

(a) "Carrier" shall mean any person whose business is to transport goods or people while acting in the capacity as common, private or contract transporter of a product or service using its facilities or those of other carriers.

(b) "Cigar" means any roll for smoking made wholly or in part of tobacco when the cover of the roll is also tobacco.

(c) "Cigarette" means any roll for smoking made wholly or in part of tobacco when the cover of the roll is paper or any substance other than tobacco.

(d) "Code" shall mean the "Official Code of Georgia Annotated."

(e) "Commissioner" shall mean the state revenue commissioner or the commissioner's designated representative.

(f) "Consumer Promotion" shall mean:

1. A manufacturer's promotion of cigars, loose tobacco, or smokeless tobacco that:

(i) Is only for use by the consumer;

(ii) Is designed and intended to induce the consumer to purchase a specified cigar, loose tobacco or smokeless tobacco product;

(iii) Features cigars, loose tobacco, or smokeless tobacco product packaged with distinct promotional labeling from the manufacturer.

2. The promotional component of consumer promotions for cigars, little cigars, loose tobacco, or smokeless tobacco is excluded from payment of excise tax.

(g) "Counterfeit cigarette" means cigarettes that are manufactured, fabricated, assembled, processed, packaged, or labeled by any person other than the trademark owner of a cigarette brand or the owner's designated agent.

(h) "Dealer" means any person located within the borders of this state that sells or distributes cigarettes, cigars, little cigars, loose tobacco, or smokeless tobacco to a consumer in this state.

(i) "Department" means the Georgia Department of Revenue.

(j) "Distributor" means any person, other than a dealer, importer, or manufacturer:

1. Who sells or distributes any or all of the following tobacco product in this state:

(i) cigarettes;

(ii) cigars, little cigars;

(iii) loose tobacco or smokeless tobacco.

2. Who maintains a warehouse, warehouse personnel, and salespeople who regularly contact and call on dealers.

3. Who is engaged in the business of importing any or all cigarettes, cigars, little cigars, loose tobacco, or smokeless tobacco into this state or who purchases any or all cigarettes, cigars, loose tobacco, or smokeless tobacco from other manufacturers or distributors.

4. Who sells the cigarettes, cigars, loose tobacco or smokeless tobacco to dealers for resale in this state but is not in the business of selling the cigarettes, cigars, little cigars loose tobacco or smokeless tobacco directly to the ultimate consumer.

5. Such term shall not include any cigarette manufacturer, export warehouse proprietor, or cigarette importer with a valid permit under 26 U.S.C. Section 5712, if such person sells or distributes cigarettes in this state to cigarette distributors who hold valid and current licenses under Code Section 48-11-4, or to an export warehouse proprietor or another cigarette manufacturer with a valid permit under 26 U.S.C. Section 5712.

(k) "Distributor Promotion" shall mean:

1. A manufacturer's promotion for cigars, little cigars, loose tobacco or smokeless tobacco that:

(i) Is only for use by a distributor who is licensed by this State.

(ii) Is intended to induce a distributor to purchase a specific cigar, loose tobacco or smokeless tobacco product for resale to the retailer.

2. Distributor promotions for cigars, little cigars, loose tobacco, or smokeless tobacco are:

(i) Monetary discounts offered directly to a distributor for the purchase of cigars, little cigars, loose tobacco, or smokeless tobacco.

(ii) Free product offered to a distributor to induce it to purchase a specified cigar, loose tobacco or smokeless tobacco product.

(iii) Monetary discounts to pay within a certain time or purchase a large quantity of cigars, little cigars, loose tobacco, or smokeless tobacco product.

3. All such discounts and allowances are included in the computation of the wholesale cost price and subject to state excise tax.

(l) "Export cigarettes a/k/a Gray cigarettes" shall mean any finished cigarette packaged and marked for export and not for consumption in the United States.

(m) "First taxable transaction" means the first sale, receipt, purchase, possession, consumption, handling, distribution, or use of cigars, little cigars, cigarettes, loose tobacco, or smokeless tobacco within this state.

(n) "Importer" means any person who imports into this state from a foreign country, or who brokers in the United States, either directly or indirectly, a finished cigarette, finished cigar, little cigars, finished loose tobacco or finished smokeless tobacco for sale or distribution.

(o) "Individual" shall mean a natural person.

(p) "Licensee" shall mean any person who has been granted a license or permit by the Department concerning the manufacturing, importing, wholesaling, shipping, distribution, sale, or who deals in tobacco products.

(q) "Little cigars" means cigars not weighing more than three pounds per thousand.

(r) "Loose tobacco or smokeless tobacco" means granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff or snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings, and sweepings of tobacco; and other kinds and forms of tobacco prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking, but does not include cigarettes or cigars, little cigars, or tobacco purchased for the manufacture of cigarettes, cigars, or little cigars by cigarette manufacturers or cigar manufacturers.

(s) "Manufacturer" shall mean any person who manufactures, fabricates, assembles, processes, or labels a finished cigar, little cigar, finished cigarette, finished loose tobacco, or finished smokeless tobacco product.

(t) "Package" shall mean a pack, carton, or container of any kind in which cigarettes, cigars, little cigars, loose tobacco or smokeless tobacco is offered for sale, sold, otherwise distributed, or intended for distribution to consumers.

(u) "Person" shall mean any individual, firm, partnership, cooperative, nonprofit membership corporation, joint venture, association, company, corporation, agency, syndicate, estate, trust, business trust, receiver, fiduciary, or other group or combination acting as a unit, body politic, or political subdivision whether public, private, or quasi-public.

(v) "Place of business" shall mean the premises of a licensed manufacturer, importer, wholesaler or dealer described in the license application.

(w) "Promotional activities" shall mean any activity other than those set forth in "Consumer Promotion" and "Distributor Promotion" directed to the consumer by the manufacturer or importer, including solicitation of orders, demonstration and sampling, arranging of displays, distribution of literature, posting of advertising, exchange of fresh stock, and similar activities for promoting the sale or use of loose tobacco, smokeless tobacco, cigars, little cigars, or cigarettes.

(x) "Regulations" shall mean regulations promulgated by the commissioner pursuant to the Code.

(y) "Related machinery" means any item, device, conveyance, or vessel of any kind or character used in manufacturing, packaging, labeling, stamping, transporting, distributing, selling, or possessing counterfeit cigarettes.

(z) "Representative" shall mean a person, employee, agent, independent contractor, or salesperson acting on behalf of or at the direction of the licensee, with or without compensation, represents the licensee to a third party.

(aa) "Sale" means any sale, transfer, exchange, theft, barter, gift, or offer for sale and distribution, in any manner or by any means.

(bb) "Stamp" means any impression, device, stamp, label, or print manufactured, printed, made, or affixed, as provided by the commissioner.

(cc) "State" shall mean the State of Georgia.

(dd) "Tobacco product" means cigars, cigarettes, little cigars, loose tobacco, smokeless tobacco, or any product derived either from tobacco or any of its derivates.

(ee) "Tobacco-related objects" means the same as set forth under O.C.G.A. § 16-12-170(1).

(ff) "Unregistered nonparticipating manufacturer" shall mean a manufacturer of cigarettes that:

1. Is not a signatory to the Master Settlement Agreement (MSA) with the state.

2. Is not registered with the Attorney General of the State of Georgia.

(gg) "Vending machine" means any coin, currency, or electronic-operated device used for the automatic merchandising of cigars, little cigars, cigarettes, loose tobacco, or smokeless tobacco.

(hh) "Vending machine operator" means the person responsible for supplying product, operation, or maintenance of the vending machine.

(ii) "Warehouse" means any premises of a wholesaler, manufacturer, importer, or shipper other than its registered place of business which is used to store tobacco products in accordance with the express written approval of the commissioner.

(jj) "Wholesale cost price" concerns cigars, little cigars, loose tobacco or smokeless tobacco. It shall be computed as follows:

1. If a manufacturer is shipping to a state licensee untaxed cigars, little cigars, loose tobacco, or smokeless tobacco product, the wholesale cost price shall be the manufacturer's invoice price at the time of sale, including the cost of shipping and handling, if not itemized, together with any "distributor promotions" but exclusive of any "consumer promotions."

2. If a distributor sells to another distributor untaxed cigars, little cigars, loose tobacco, or smokeless tobacco product, the wholesale list price shall be the selling distributor's sales price, including the cost of shipping together with any "distributor promotions" but exclusive of any "consumer promotions."

3. If a distributor sells to a dealer untaxed cigars, little cigars, loose tobacco, or smokeless tobacco product, the wholesale list price shall be the selling distributor's sales price, including the cost of shipping and handling together with any "distributor promotions" but exclusive of any "consumer promotions."

Notes

Ga. Comp. R. & Regs. R. 560-8-1-.01

O.C.G.A. Secs. 48-2-12, 48-11-1.

Original Rule entitled "Functions" adopted. F. and eff. June 30, 1965. Amended: F. Aug. 5, 1970; eff. Aug. 25, 1970. Repealed: F. May 5, 1982; eff. May 25, 1982. Amended: New Rule entitled "Definitions - General" adopted as ER. 560-8-1-0.22-.01. F. and eff. May 10, 2007, the date of adoption. Amended: ER. 560-8-1-0.25-.01 adopted. F. and eff. September 7, 2007, the date of adoption. Amended: Permanent Rule of same title adopted. F. Sept. 26, 2007; eff. Oct. 16, 2007.