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



(1)  An excise tax equal to 5.00 cents for each
cigarette 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 rate
upon the use by the wholesaler or dealer;



(2)  An excise tax equal to 6.00 cents for each
cigarette sold, used, or possessed by a wholesaler or dealer after September
30, 2002, whether or not sold at wholesale, or if not sold then at the same
rate upon the use by the wholesaler or dealer;



(3)  An excise tax equal to 6.50 cents for each
cigarette 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 rate
upon the use by the wholesaler or dealer;



(4)  An excise tax equal to 7.00 cents for each
cigarette 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 rate
upon the use by the wholesaler or dealer;



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



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



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



(8)  An excise tax equal to 13.00 cents for each
cigarette 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 rate
upon the use by the wholesaler or dealer;



(9)  An excise tax equal to 11.00 cents for each
little cigar sold, used, or possessed by a wholesaler or dealer on and after October
1, 2009, whether or not sold at wholesale, or if not sold then at the same rate
upon the use by the wholesaler or dealer;



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



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



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



(13)  An excise tax equal to fifty per cent of the
wholesale price of each cigar with a ring gauge of thirty or more (.467 inches
in diameter or more), of any length, sold, used, or possessed by a wholesaler
or dealer on and after September 30, 2009, whether or not sold at wholesale, or
if 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 a
casualty loss deduction allowable under chapter 235, the tax paid shall be
refunded or credited to the account of the wholesaler or dealer.  The tax shall
be applied to cigarettes through the use of stamps.



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



(1)  The measure of the taxes shall not include any
cigarettes 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 all
sales of cigarettes and tobacco products to the United States (including any
agency or instrumentality thereof that is wholly owned or otherwise so
constituted as to be immune from the levy of a tax under this chapter), sold by
any person licensed under this chapter; and



(3)  The taxes shall be paid only once with respect to
the same cigarettes or tobacco product.  This limitation shall not prohibit the
imposition of the excise tax on receipts from sales of tobacco products under
subsection (a)(5); provided that the amount subject to the tax on each sale
shall 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, c
56, §1 and c 58, §3]



 



Note



 



  The 1999 amendment
takes effect retroactively and applies to taxable periods beginning after June
30, 1993.  L 1999, c 10, §4.



 



Cross References



 



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