8202-A. Incidence and rate of tax

(a) Imposition of tax on certain tobacco products.--A tobacco products tax is imposed on the dealer or manufacturer at the time the tobacco product is first sold to a retailer in this Commonwealth at the rate of 55¢ per ounce for the purchase of any tobacco product other than electronic cigarettes.  The tax rate shall include a proportionate tax at the rate of 55¢ per ounce on all fractional parts of an ounce.  The tax imposed on tobacco products other than electronic cigarettes that weigh less than 1.2 ounces per container is equal to the amount of the tax imposed on tobacco products other than electronic cigarettes that weigh 1.2 ounces.  The tax shall be collected from the retailer by whomever sells the tobacco product to the retailer and remitted to the department.  Any person required to collect this tax shall separately state the amount of tax on an invoice or other sales document.
(a.1) Imposition of tax on electronic cigarettes.--A tobacco products tax is imposed on the dealer or manufacturer at the time the electronic cigarette is first sold to a retailer in this Commonwealth at the rate of 40% on the purchase price charged to the retailer for the purchase of electronic cigarettes.  The tax shall be collected for the retailer by whomever sells the electronic cigarette to the retailer and remitted to the department.  Any person required to collect this tax shall separately state the amount of tax on an invoice or other sales document.
(b) Retailer.--A retailer may only purchase tobacco products from a licensed dealer.  If the tax is not collected by the seller from the retailer, the tax is imposed on the retailer at the time of purchase at the same rate as in subsections (a) and (a.1) based on the retailer's purchase price of the tobacco products.  The retailer shall remit the tax to the department.
(c) Unclassified importer.--The tax is imposed on an unclassified importer at the time of purchase at the same rate as in subsections (a) and (a.1) based on the unclassified importer's purchase price of the tobacco products.  The unclassified importer shall remit the tax to the department.
(d) Exceptions.--The tax shall not be imposed on any tobacco products that:
(1) are exported for sale outside this Commonwealth;  or
(2) are not subject to taxation by the Commonwealth pursuant to any laws of the United States.