2012 Legislative Summaries

Alcoholic Beverages Taxes

High Alcohol Content Beverages

Public Chapter 730 requires the Tennessee Alcohol Beverage Commission to submit to the Senate and House State and Local Government Committees by January 30, 2013, recommended rules regarding the sale of high alcohol content beverages. 

Effective date: April 11, 2012.

Wine Shipment by Military Member

Public Chapter 968 permits a military member stationed outside of the country to obtain a $100 one-time license that allows him to ship wine purchased outside the country into Tennessee. It further requires the military member to pay the alcoholic beverage tax on such wine. 

Effective date: May 10, 2012.

Information Reports by Sellers of Beer and Tobacco

Public Chapter 657, Section 9, authorizes the Commissioner to require persons selling beer and tobacco products to retailers of such beverages or products to electronically file an information report of such sales with the Department. The Commissioner is authorized, in extenuating circumstances and upon written request, to waive the electronic filing requirement. The information report must contain all information deemed reasonably necessary by the Commissioner. However, a seller is not required to change its recordkeeping system for the report, and the reporting requirement will be satisfied if the seller provides the information it has. The report must be filed on a monthly or less frequent basis, but will be due no sooner than the 20th day of the month following the reporting period. Any person who fails to submit the report by the due date is subject to a penalty of up to $1,000 for every month the report is not provided, up to a maximum amount of $10,000. The Commissioner is authorized to waive the penalty for good and reasonable cause.

Effective date: April 4, 2012.

Beer Barrelage Tax and Wholesale Beer Tax: Record Keeping

Public Chapter 657, Section 10, amends the requirements set forth in Tenn. Code Ann. § 57-5-206(b) for record keeping with respect to the beer barrelage tax. Specifically, it deletes the provision that a microfiche copy of the original bill of sale or invoice may be saved in lieu of the original, and provides that a digital copy may be saved instead. Additionally, this law amends the requirements set forth in Tenn. Code Ann. § 57-6-105(c) for record keeping with respect to the wholesale beer tax. Specifically, it deletes the provision that the wholesaler may save a microfiche copy of a delivery ticket signed by a retailer or retailer’s agent in lieu of the original, and provides that a digital copy may be saved instead.  

Effective date: April 4, 2012.

Business Tax

Business Tax: Tax Period

Public Chapter 657, Section 6, authorizes the Commissioner to change the tax period set forth under the Business Tax Act to correspond to the taxpayer’s fiscal year. The Commissioner is also authorized to change the due date of the associated tax return to a date that is not less than 2 calendar months following the end of such tax period. However, the change may not occur sooner than 90 days after the Commissioner has certified that a system is in place for the electronic submission of all business tax returns.

Effective date: April 4, 2012.

Electronic Filing

General Electronic Filing Requirement and Fees

Public Chapter 657, Sections 1-2, authorizes the Commissioner of Revenue to require that any return, report, claim, statement, application or other document, and any payment or remittance accompanying the document, that is filed with the Department be submitted electronically.

This requirement will become effective no sooner than 90 days after the Commissioner has certified, by posting a notice on the Department’s website, that a system is in place for the electronic submission of such documents and payments.
If the electronic filing requirement creates a hardship upon a person, such person is permitted to file the applicable document in paper form.
The Commissioner is authorized to require that any paper filing be accompanied by a manual handling fee, not to exceed $25, for the additional cost of preparing, printing, receiving, reviewing and processing the paper filing.
The cumulative total of manual handling fees to any one taxpayer for all tax filings in any 12-month period may not exceed $50.

Additionally, the Commissioner is authorized to deduct and retain from the proceeds of any tax administered and collected by the Commissioner an amount necessary to offset the fee paid to a third party for the processing of documents and payments that are submitted electronically to the Department.

Effective date: April 4, 2012.

Motor and Other Vehicles: Digital Filing, Submission, or Retention

Public Chapter 657, Section 11, authorizes the Commissioner to permit the filing, submission, or retention in digital format of any document relating to the motor vehicles laws administered by the Department of Revenue.

Effective date: April 4, 2012.

Sales and Use Tax: Electronic Filing Requirement Waiver

Public Chapter 657, Section 7, authorizes the Commissioner to assess a manual filing fee, not to exceed $25, when a return that is otherwise required to be filed electronically is filed by paper. The cumulative total of manual handling fees charged to any one taxpayer for all tax filings in any 12-month period cannot exceed $50.

Effective date: April 4, 2012.

Sales and Use Tax: Penalty for Failing to File Electronically

Public Chapter 657, Section 8, amends the assessment the Commissioner may make against a dealer required to file sales and use tax returns electronically from a penalty of $500 to a penalty of up to $500, for each instance of filing a return by any other means.

Effective date: April 4, 2012.

Business Tax: Penalty for Failing to File Electronically

Public Chapter 657, Section 5, amends the assessment the Commissioner may make against a person required to file business tax returns electronically from a penalty of $500 to a penalty of up to $500, for each instance of filing a return by any other means. Furthermore, the Commissioner is authorized to require that any paper filing made in extenuating circumstances be accompanied by a manual handling fee, not to exceed $25. The cumulative total of manual handling fees charged to any one taxpayer for all tax filings in any 12-month period cannot exceed $50.

Effective date: April 4, 2012.

Petroleum Products Tax: Penalty for Failing to File Electronically

Public Chapter 657, Section 4, amends the penalty that the Commissioner may make against a distributor or importer required to file reports electronically from a penalty of $500 to a penalty of up to $500.

Effective date: April 4, 2012.

Franchise & Excise Tax

Extension of Time to File Franchise and Excise Tax Return

Public Chapter 658 revises the payment necessary to receive an extension of time to file a franchise and excise tax return to be the lesser of either 90% of the liability for the tax year in which the extension is being requested, or 100% of the liability for the year preceding the tax year in which the extension is being requested. If the preceding year was less than 12 months, the tax must be annualized. If there was no liability in the preceding tax year, then the taxpayer must pay the $100 minimum franchise tax.

Effective date: July 1, 2012, applicable to tax periods ending on or after July 1, 2012.

Jobs Tax Credit: Employing an Individual with Disabilities

Public Chapter 576 amends the requirements for an employer to receive the job tax credit for hiring an employee with a disability. The Commissioner of Revenue will certify a taxpayer’s participation in an employment incentive program, as well as the number of qualifying employees hired, based on a plan submitted by the taxpayer on a form prescribed by the Commissioner of Revenue. State employment incentive programs must annually provide to the Commissioner of Revenue for approval, on or before July 1, a list of their existing programs promoting the hiring of individuals with disabilities.

Effective date: March 13, 2012.

Deduction of Intangible Expenses

Public Chapter 842 requires that intangible expenses be added back to net earnings. “Intangible expenses” are expenses related to, or in connection with, the acquisition, use, maintenance or management, ownership, sale, exchange, license, or any other disposition of intangible property, to the extent such amounts are allowed or allowable as deductions or costs in determining federal taxable income and, as amended by Public Chapter 842,  includes interest expenses directly or indirectly allowed as deductions or costs in determining taxable income for federal purposes on a separate entity basis. Intangible expenses can subsequently be deducted on the return if it is determined that the transaction did not have as its principal purpose the avoidance of the excise tax. There is automatic approval of the deduction in certain situations involving affiliates in foreign nations that are signatories to comprehensive income tax treaties with the United States; involving affiliates that have paid, accrued, or incurred intangible expenses to a non-affiliate; or involving affiliates doing business in or deriving income from a state that imposes an income tax on the net income of the affiliate.

The taxpayer must submit an application for the deduction of intangible expenses at such time and on such form as prescribed by the Commissioner. For certain intangible expenses, the taxpayer may provide notice at the time of filing the tax return. The Commissioner may waive the application requirement as a result of a conference with the taxpayer. If the Commissioner approves the application, such determination shall remain in effect so long as the taxpayer submits an annual certification that the transaction remains substantially unchanged. The Commissioner is authorized to require that the taxpayer reapply for the deduction beginning no sooner than 5 years following the most recent application.

If the taxpayer deducts a disallowed intangible expense, it will generally be subject to interest and penalties. However, if the application is submitted at least 60 days before the due date of the return, and the Commissioner has neither approved nor denied the application by the due date of the return, the taxpayer will not be subject to any penalties and interest will only begin to accrue as of the date the Commissioner denies the application.

Finally, the taxpayer may deduct intangible income included in the computation of net earnings that is accrued or earned in connection with a transaction with one or more affiliates, to the extent that the corresponding intangible expense is included in the computation of the affiliate’s net earnings or loss and is not deducted by the affiliate.

Effective date: April 27, 2012, applicable to tax years ending on or after July 1, 2012.

Consolidated Net Worth Election: Limitation of Affiliated Group

Public Chapter 842, Section 6, authorizes the Commissioner, upon written request from the taxpayer, to exclude one or more persons from the taxpayer’s affiliated group if it is determined that the persons are so remote from the taxpayer that it cannot obtain the information necessary to calculate the net worth of the group, and either that the person is included in the group only because of a direct or indirect interest or that the person has a direct or indirect interest in both the taxpayer and another person that is remote from the taxpayer. In any case, excluding such persons from the affiliated group must result in a fair representation of the affiliated group’s net worth. If the exclusion is granted, all members of the affiliated group are bound by it. The Commissioner may require information to substantiate a request, due on or before the due date of the return when the exclusion is to be applicable, and may for good cause accept a late filed request.

Effective date: April 27, 2012.  

Qualifying Environmental Project Credit

Public Chapter 937 amends the industrial machinery credit to include an additional one-time credit of 1.75% of the investment in the project, and six annual credits of 1.75% of the investment in the project, for the owner of a qualifying environmental project, as defined. The entire investment in the qualifying environmental project shall be treated as an exempt required capital investment for purposes of the franchise tax minimum measure. 

Effective date:  May 10, 2012.

Qualified Production Company Credit

Public Chapter 1026, Section 10, repeals the credit against the Tennessee franchise and excise taxes for a qualified production company for tax years beginning on or after July 1, 2012. A taxpayer may still receive the benefits of the credit, however, if expenses related to production were incurred before July 1, 2012, and the Commissioner of Revenue and the Commissioner of Economic and Community Development determine that the taxpayer’s production is in the best interest of the state.

Effective date: July 1, 2012. 

Gift Tax

Gift Tax: Repeal

Public Chapter 1085 repeals the gift tax for any transfer by gift made on or after January 1, 2012. 

Effective date: May 21, 2012, and applies to tax years beginning on or after January 1, 2012.

Hall Income Tax

Hall Income Tax: Cemetery Trusts

Public Chapter 667 amends the exemption for income of a trust for the perpetual care of a private cemetery to exempt income derived from a trust for the perpetual care of any cemetery, public or private.

Effective date: July 1, 2012.

Inheritance Tax

Inheritance Tax: Phase Out and Repeal

Public Chapter 1057 phases out the inheritance tax by annually raising the exemption through 2015, and repealing the tax for decedents dying in 2016 or any subsequent year. The exemption will be increased as follows. In the case of a decedent dying in 2012, the exemption is $1 million. In the case of a decedent dying in 2013, the exemption is $1.25 million. In the case of a decedent dying in 2014, the exemption is $2 million. In the case of a decedent dying in 2015, the exemption is $5 million.

Effective date: May 21, 2012.

Miscellaneous Taxes

Real Estate Transfer and Mortgage Tax

Public Chapter 792 applies the tax rate for the recordation of a transfer of realty to every $100 of consideration or value of the property, as required under the statute. This bill also applies the tax rate for the recordation of any instrument evidencing an indebtedness to every $100 of indebtedness so evidenced. Previously, the tax rate was applied to every $100 or major fraction thereof. This bill eliminates the rounding requirement under previous law, and instead requires that the tax rate be applied to the exact amount of the tax base.

Effective date: April 23, 2012.

Natural Gas Tax: Dealer’s Permit

Public Chapter 822 creates a natural gas dealer’s permit for persons or entities that dispense compressed natural gas to customers’ vehicles through qualified natural gas dispensers with meter capability. User permits are not required when a dealer has a natural gas dealer’s permit. Dealers are responsible, at the time of delivery to a vehicle, for collecting the compressed natural gas tax. Each dealer shall file a monthly report on or before the 25th day of the month following the month of activity, and remit the tax due and collected. Dealers must keep a complete record of all metered compressed natural gas received and used or sold for 4 years.

Effective date: July 1, 2012.

Unauthorized Substances Tax: Controlled Substance Analogues

Public Chapter 848 amends the tax on merchants of unauthorized substances to include controlled substance analogues. “Controlled substance analogue” means a capsule,  pill,  powder, product or other substance that has the stimulant, depressant, or hallucinogenic effect on the central nervous system of a controlled substance and the chemical structure of which is a derivative of, or substantially similar to, the chemical structure of a controlled substance.

Effective date: May 15, 2012.

County Litigation Tax to Fund Certain Computer Related Expenses of Law Enforcement

Public Chapter 659 authorizes counties levying a privilege tax on litigation, upon adoption of a resolution by a 2/3 majority of the county legislative body, to direct that such litigation tax revenues be used to fund certain enumerated computer expenses of law enforcement agencies. Such use of the litigation tax revenue may continue only until the computer related expenses have been paid or the computer related debt has been retired.

Effective date: July 1, 2012.

Privilege Tax on Litigation

Public Chapter 1052, Section 2, imposes a privilege tax of $2.00 on litigation for all criminal charges originating in a general sessions court of a county served by a judicial commissioner. The revenue generated by this tax will be invested in a newly created state treasury account known as the judicial commissioner continuing education account, and any interest or leftover balances at year end shall remain in the account. Section 1 allows the funds to be used for continuing education purposes for judicial commissioners in the state. Section 3 exempts from this tax litigation originating in Robertson County.

Effective date: July 1, 2012.

Sales and Use Tax

State Sales Tax Rate Reduction: Food and Food Ingredients

Public Chapter 1058 reduces the state sales tax rate on food and food ingredients from 5.5% to 5.25%. Food and food ingredients are taxed at the state rate, plus the applicable local option sales tax rate.

Effective date: July 1, 2012.

Natural Disaster Refunds

Public Chapter 1013 entitles a claimant to a refund of the state and local sales and use tax paid to retailers as a result of purchases of major appliances, residential furniture, or residential building supplies used in the claimant’s primary residence to replace, repair, or restore such items that were damaged or destroyed in a federally declared natural disaster in this state occurring on or after January 1, 2012. To qualify as a claimant, the person must receive disaster assistance through the Federal Emergency Management Agency (FEMA) as a result of the natural disaster.

The sales price of any major appliance or piece of residential furniture may not exceed $3,200 per item.  In addition, the sales price of an item of residential building supplies may not exceed $500.  The total amount refunded in connection with any one residence may not exceed $2,500.  To receive a refund, a claimant must file only one natural disaster claim for refund with the Department of Revenue within one year from the date shown on the FEMA decision letter received by the claimant. Each claimant is required to keep and preserve records of the purchases for which a refund is claimed for a period of three years from December 31 of the year in which the natural disaster claim for refund was filed. Any person that knowingly files a false or fraudulent natural disaster claim for refund is subject to a civil penalty of up to $25,000.

Effective date: May 15, 2012, and shall apply to any federally declared natural disaster occurring in Tennessee on or after January 1, 2012.

Industrial Machinery Exemption

Public Chapter 842, Section 8, expands the industrial machinery exemption relating to material handling equipment and storage racks to all taxpayers. The exemption previously applied only to corporations subject to Tennessee franchise and excise taxes.

Effective date: April 27, 2012.

Repairs of Out-of-State Aircraft Exemption

Public Chapter 1078 extends the sales and use tax exemption for repair services with respect to airplanes and airplane components and parts that are situated outside Tennessee and removed from Tennessee within 15 days from the completion of the repair services.  The exemption is extended to include when such repair services are performed pursuant to and by an authorized service facility by an original equipment manufacturer for such service with respect to aircraft qualifying as “Transport Category Aircraft” under federal law.

Effective date: May 21, 2012.

Border Region Retail Tourism Development District Act

Public Chapter 1092 narrows the Border Region Retail Tourism Development District Act.  This law limits the use of sales tax revenues to costs incurred within 10 years after the region is certified. Additionally, this law sunsets the Act by limiting it to districts that applied for certification before January 1, 2012.

Effective date: May 21, 2012.

Affiliate Non-Retail Distribution Activities

Public Chapter 624 provides that the in-state non-retail activities of a person’s affiliates will not establish nexus between the person and the State of Tennessee for sales and use tax purposes, but only if the affiliates meet certain enumerated capital investment and jobs requirements related to the creation of distribution facilities between January 1, 2011, and January 1, 2014. In addition, the person must enter into a written agreement with the State of Tennessee specifying that it and its affiliates will begin collecting sales and use tax beginning at the earliest of January 1, 2014, whenever the affiliates fail to meet the enumerated capital investment or jobs requirements, or whenever Congress passes a law authorizing states to collect sales tax even if the taxpayer does not have substantial nexus with the state. Finally, any person that does not establish nexus with Tennessee under this law, and that makes sales through a website to Tennessee customers, must provide its customers with a notice using specified language that use tax may be due on the purchase. The person must also provide its customers with a notice using specified language that use tax may be due on any purchases made during the previous year, including the total dollar amount of the purchases.

Effective date: March 23, 2012.

Tax Administration

Extension of Return Due Dates

Public Chapter 842, Section 7, grants the Commissioner the discretion to extend the due date of specified returns for taxes administered and collected by the Department of Revenue, including extensions for federally declared disasters. The Commissioner may extend the due date to no later than the extension period granted by the Internal Revenue Service.

Effective date: April 27, 2012, applicable to returns with due dates on or after April 1, 2012.

Notification of Annexation

Public Chapter 837 amends the municipality annexation statute, which provides that whenever a municipality extends its boundaries by annexation, the county or counties in which the municipality is located shall continue to receive the revenue from all state and local taxes distributed on the basis of situs of collection, generated within the annexed area, until July 1 following the annexation, unless the annexation takes effect on July 1. The amendment requires a municipality extending its boundaries by annexation to notify the Department of Revenue upon the annexation becoming effective, rather than prior to the annexation becoming effective.

Effective date: April 25, 2012.

Sports Authority Allocations

Public Chapter 849 clarifies that state and local option sales tax revenue derived from an indoor sports facility subject to special distribution under current law will be distributed to the sports authority or comparable municipal agency formally designated by the municipality.  In addition, Public Chapter 849 specifies that such revenue shall be used exclusively for the payment of, or the reimbursement of expenses associated with securing current, expanded, or new events for such facilities.

Effective date: April 27, 2012.

Sales and Use Tax: Revenue Allocation

Public Chapter 1026, Sections 4 and 5, change the allocation of sales and use tax revenue collected by the Department of Revenue. Under the amendment, 29.0141% of the collected funds will be earmarked for the general fund, and 4.6030% of the collected funds will be appropriated to the several incorporated municipalities in the state, to be divided amongst them in accordance with the statutory allocation method.

Effective date: July 1, 2012.

Small Business Incentive Act

Public Chapter 810 provides for the development of a website containing information essential to beginning a business. The law requires the Department to provide assistance to the Department of Economic and Community Development and the Office of the Small Business Advocate in compiling this information.

Effective Date: April 23, 2012.

Reporting to the Comptroller of the Treasury

Public Chapter 946, Section 1, amends Tennessee Code Annotated, Title 8, Chapter 4, Part 1, by adding an additional section, which requires the Department of Revenue to report any information related to the theft, forgery, credit card fraud, or any other intentional act of unlawful or unauthorized taking, or abuse of public: money, property, services, or other cash shortages. It also authorizes the Comptroller of the Treasury to establish guidelines for such reports and makes any information reported confidential.

Effective date: May 10, 2012.

Title and Registration

Mini Trucks

Public Chapter 948 amends the definition of medium speed vehicle to include mini-trucks. 

Effective date: May 10, 2012. 

Specialty License Plates Authorized

Various public chapters authorize new earmarked specialty license plates.

 

Specialty License Plates: Extensions

Various public chapters extend the time for meeting the minimum issuance requirements for a particular specialty plate to July 1, 2013.

 

Motorcycle Plate - Sons of Confederate Veterans

Public Chapter 553 authorizes the issuance of a motorcycle plate to an owner of a motorcycle who otherwise qualifies for a Sons of Confederate Veterans vehicle plate.  The Sons of Confederate Veterans vehicle and motorcycle plates will be considered together for any minimum issuance requirements. 

Effective date:  July 1, 2012. 

Motorcycle and License Plate - Tennessee Sheriffs’ Association

Public Chapter 749 authorizes the creation of new specialty vehicle and motorcycle license plates for members of the Tennessee Sheriffs’ Association.  The vehicle and motorcycle plates will be considered together for any minimum issuance requirements.  

Effective date:  April 16, 2012.

License Plate - Animal Friendly

Public Chapter 1022 requires the words “Spay/Neuter” to appear on any newly made Animal Friendly specialty earmarked plates. 

Effective date: May 15, 2012.

License Plates - Honorably Discharged Veterans

Public Chapter 791 specifies the plate design for honorably discharged veterans of Operation Iraqi Freedom and for honorably discharged veterans of and active members serving in Operation Enduring Freedom and provides for the design of a cultural plate for honorably discharged veterans of and active members serving in Operation New Dawn. 

Effective date:  July 1, 2012. 

Disabled Driver Decals

Public Chapter 845 authorizes the issuance of special decals to disabled drivers who receive specialty earmarked license plates but would otherwise qualify to receive a disabled driver license plate.  A specialty earmarked license plate with a special decal affixed will be recognized as a disabled driver plate. It allocates the cost of the special decal as an expense of the specialty earmarked license plate for the purpose of determining the revenues produced by the sale of the plate. 

Effective date:  July 1, 2011.

Tobacco Taxes

Non-Participating Manufacturers: Certification Requirement

Public Chapter 669 requires that non-participating tobacco product manufacturers located outside of the United States certify that they have provided a declaration from each of their importers into the United States of any of the brand families to be sold into Tennessee.  Such declaration must state the following:

The importer accepts joint and several liability with the non-participating manufacturer for obligations under the Escrow Fund Act;
The importer consents to personal jurisdiction in Tennessee for the purpose of claims by the state under the Escrow Fund Act; and
The importer has appointed a registered agent for service of process in Tennessee. 

The non-participating manufacturer must also certify that it consents to be sued in the circuit or chancery courts in Tennessee for the purposes of enforcing the Escrow Fund Act.

Effective date: April 4, 2012.

Non-Participating Manufacturers: Directory Removal

Public Chapter 669 allows the Commissioner to remove a non-participating manufacturer from the state’s Directory of Approved Tobacco Product Manufacturers in the following scenarios:

If the non-participating manufacturer has been removed from any state’s Directory based on acts that would be grounds for removal in Tennessee;
If the non-participating manufacturer plead guilty or nolo contendere to or has been found guilty of a crime relating to the reporting, distribution, sale or taxation of tobacco products; or
If the non-participating manufacturer failed to cooperate with any request for information made pursuant to Tenn. Code Ann. § 67-4-2604(d).

Effective date: April 4, 2012.

Roll-Your-Own Cigarette Machines

Public Chapter 1066 addresses regulation and taxation of cigarettes produced by “cigarette rolling machines,” defined as machines at retail establishments that enable any person to process at that establishment tobacco into a roll or tube. 

Beginning July 1, 2012, cigarette rolling machine operators must obtain a license and pay a $500 license fee for each cigarette rolling machine possessed, controlled, or maintained by them.  All cigarette rolling machines must contain a secure meter that counts the number of cigarettes made by the machine and cannot be altered by the cigarette rolling machine operator.

Beginning October 1, 2013, cigarette rolling machine operators are prohibited from the following:

Using in the cigarette rolling machines any tobacco other than roll-your-own tobacco listed on the Directory of Approved Tobacco Manufacturers;
Possessing any loose tobacco that has been removed from its original packaging other than roll-your-own tobacco listed on the Directory of Approved Tobacco Manufacturers;
Possessing more than 16 ounces per cigarette rolling machine of roll-your-own tobacco listed on the Directory that has been removed from its original packaging; and
Allowing their cigarette rolling machines to be used to process cigarettes with tobacco that was not first purchased from the cigarette rolling machine operator. 

Violations may result in license revocation and a civil penalty not to exceed the greater of 500% of the retail value of the tobacco sold or $5,000.  In addition, any tobacco sold, offered for sale, or possessed for sale by a cigarette rolling machine operator in violation of this law is contraband and subject to seizure.

In addition, beginning October 1, 2013, cigarettes produced through the use of cigarette rolling machines will be taxed at the rate of 3.1¢ per cigarette. The tax will be reduced by the amount of “Other Tobacco Products” tax paid on the purchase of the tobacco used to produce such cigarettes.  Cigarette rolling machine operators must calculate the amount of tax due and remit such amount to the Department.

Effective date: July 1, 2012, except as noted above.

Information Reports by Sellers of Beer and Tobacco

Public Chapter 657, Section 9, authorizes the Commissioner to require persons selling beer and tobacco products to retailers of such beverages or products to electronically file an information report of such sales with the Department. The Commissioner is authorized, in extenuating circumstances and upon written request, to waive the electronic filing requirement. The information report must contain all information deemed reasonably necessary by the Commissioner. However, a seller is not required to change its recordkeeping system for the report, and the reporting requirement will be satisfied if the seller provides the information it has. The report must be filed on a monthly or less frequent basis, but will be due no sooner than the 20th day of the month following the reporting period. Any person who fails to submit the report by the due date is subject to a penalty of up to $1,000 for every month the report is not provided, up to a maximum amount of $10,000. The Commissioner is authorized to waive the penalty for good and reasonable cause.

Effective date: April 4, 2012.