ARS 42-3452

Payment of tax required to sell, distribute or transfer tobacco products

A. Except as provided in subsection B of this section, a person may not:

1. Sell, offer for sale, distribute or transfer any tobacco products on which a tax is imposed by this chapter to any person within this state unless at the time of the sale, distribution or transfer the tax has been paid.  The department shall consider tobacco taxes paid at the time of the sale, distribution or transfer of cigarettes if evidenced by an Arizona tax stamp or any other official indicia affixed to the package by a licensed distributor.  The department shall consider tobacco taxes paid at the time of the sale, distribution or transfer of tobacco products other than cigarettes if a licensed distributor reports and remits the taxes on the products in accordance with the manner, method and time prescribed by § 42-3501.  Sworn returns that are prepared and remitted by a licensed distributor under § 42-3501 constitute official indicia that tobacco taxes have been paid on the tobacco products.

2. Sell cigarettes that have Arizona tax stamps affixed unless the tax evidenced by the stamps is actually paid.  The department shall not refund any amount of that tax on the grounds that the stamps are not required to be affixed to the cigarettes.

B. A distributor licensed pursuant to § 42-3401 may not sell, distribute or transfer tobacco products for which the distributor is licensed to another such licensed distributor without paying the tax at the time of the sale, distribution or transfer.