§245-3  Taxes.  (a)  Every wholesaler ordealer, in addition to any other taxes provided by law, shall pay for theprivilege of conducting business and other activities in the State:

(1)  An excise tax equal to 5.00 cents for eachcigarette sold, used, or possessed by a wholesaler or dealer after June 30,1998, whether or not sold at wholesale, or if not sold then at the same rateupon the use by the wholesaler or dealer;

(2)  An excise tax equal to 6.00 cents for eachcigarette sold, used, or possessed by a wholesaler or dealer after September30, 2002, whether or not sold at wholesale, or if not sold then at the samerate upon the use by the wholesaler or dealer;

(3)  An excise tax equal to 6.50 cents for eachcigarette sold, used, or possessed by a wholesaler or dealer after June 30,2003, whether or not sold at wholesale, or if not sold then at the same rateupon the use by the wholesaler or dealer;

(4)  An excise tax equal to 7.00 cents for eachcigarette sold, used, or possessed by a wholesaler or dealer after June 30,2004, whether or not sold at wholesale, or if not sold then at the same rateupon the use by the wholesaler or dealer;

(5)  An excise tax equal to 8.00 cents for eachcigarette sold, used, or possessed by a wholesaler or dealer on and afterSeptember 30, 2006, whether or not sold at wholesale, or if not sold then atthe same rate upon the use by the wholesaler or dealer;

(6)  An excise tax equal to 9.00 cents for eachcigarette sold, used, or possessed by a wholesaler or dealer on and afterSeptember 30, 2007, whether or not sold at wholesale, or if not sold then atthe same rate upon the use by the wholesaler or dealer;

(7)  An excise tax equal to 10.00 cents for eachcigarette sold, used, or possessed by a wholesaler or dealer on and afterSeptember 30, 2008, whether or not sold at wholesale, or if not sold then atthe same rate upon the use by the wholesaler or dealer;

(8)  An excise tax equal to 13.00 cents for eachcigarette sold, used, or possessed by a wholesaler or dealer on and after July 1,2009, whether or not sold at wholesale, or if not sold then at the same rateupon the use by the wholesaler or dealer;

(9)  An excise tax equal to 11.00 cents for eachlittle cigar sold, used, or possessed by a wholesaler or dealer on and after October1, 2009, whether or not sold at wholesale, or if not sold then at the same rateupon the use by the wholesaler or dealer;

(10)  An excise tax equal to 14.00 cents for eachcigarette or little cigar sold, used, or possessed by a wholesaler or dealer onand after July 1, 2010, whether or not sold at wholesale, or if not sold thenat the same rate upon the use by the wholesaler or dealer;

(11)  An excise tax equal to 15.00 cents for eachcigarette or little cigar sold, used, or possessed by a wholesaler or dealer onand after July 1, 2011, whether or not sold at wholesale, or if not sold thenat the same rate upon the use by the wholesaler or dealer;

(12)  Except as provided in paragraph (13), an excisetax equal to seventy per cent of thewholesale price of each article or item of tobacco products sold by thewholesaler or dealer on and after September 30, 2009, whether or not sold atwholesale, or if not sold then at the same rate upon the use by the wholesaleror dealer; and

(13)  An excise tax equal to fifty per cent of thewholesale price of each cigar with a ring gauge of thirty or more (.467 inchesin diameter or more), of any length, sold, used, or possessed by a wholesaleror dealer on and after September 30, 2009, whether or not sold at wholesale, orif not sold then at the same rate upon the use by the wholesaler or dealer.

Where the tax imposed has been paid on cigarettes,little cigars, or tobacco products that thereafter become the subject of acasualty loss deduction allowable under chapter 235, the tax paid shall berefunded or credited to the account of the wholesaler or dealer.  The tax shallbe applied to cigarettes through the use of stamps.

(b)  The taxes, however, are subject to thefollowing limitations:

(1)  The measure of the taxes shall not include anycigarettes or tobacco products exempted, and so long as the same are exempted,from the imposition of taxes by the Constitution or laws of the United States;

(2)  The measure of taxes shall exempt and exclude allsales of cigarettes and tobacco products to the United States (including anyagency or instrumentality thereof that is wholly owned or otherwise soconstituted as to be immune from the levy of a tax under this chapter), sold byany person licensed under this chapter; and

(3)  The taxes shall be paid only once with respect tothe same cigarettes or tobacco product.  This limitation shall not prohibit theimposition of the excise tax on receipts from sales of tobacco products undersubsection (a)(5); provided that the amount subject to the tax on each saleshall not include amounts previously taxed under this chapter. [L 1939, c 220,§4; RL 1945, §5753; am L 1945, c 115, §1; am L 1949, c 344, §1; RL 1955,§125-3; am L 1957, c 34, §21; am L Sp 1957, c 1, §8(b); am L 1965, c 155, §6;HRS §245-3; gen ch 1985; am L 1993, c 220, §9; am L 1994, c 104, §2; am L 1997,c 331, §1; am L 1999, c 10, §1; am L 2000, c 249, §§4, 20(2); am L 2002, c 94,§3 and c 246, §§2, 3; am L 2003, c 3, §7; am L 2006, c 316, §7; am L 2009, c56, §1 and c 58, §3]

 

Note

 

  The 1999 amendmenttakes effect retroactively and applies to taxable periods beginning after June30, 1993.  L 1999, c 10, §4.

 

Cross References

 

  Other tax exemptionon sales to U.S. government, see §237-25.