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The Michigan Department of Treasury has announced that licensed wholesalers and unclassified acquirers that are authorized to be stamping agents under the Tobacco Products Tax Act (TPTA) will be required to transition from heat-applied cigarette tax stamps to digital, pressure-applied tax stamps.
The Michigan Department of Treasury has announced that licensed wholesalers and unclassified acquirers that are authorized to be stamping agents under the Tobacco Products Tax Act (TPTA) will be required to transition from heat-applied cigarette tax stamps to digital, pressureapplied tax stamps. The transition will occur on a rolling basis and will be completed by December 2014. Stamping agents may claim monthly reimbursement for direct costs incurred for the initial purchase of digital stamping machines in an amount of 5-55% of the purchase price, including any sales or use tax. The reimbursement must be claimed as a monthly credit on the tobacco tax return filed in the month immediately following the stamping agent's implementation date and for the succeeding 17 months. Stamping agents may also receive compensation in the form of an offset or a credit to their monthly tobacco tax liability for direct costs incurred for upgrades to equipment that are "necessary to affix" digital stamps. The monthly compensation amount is 0.5% of the total amount of TPTA tax due on cigarettes sold for the month reported. The notice can be viewed on the department's website at http://www.michigan.gov/documents/taxes/ StampingAgentsNotice_448 510_7.pdf. Important Notice, Michigan Department ofTreasury, February 21, 2014
Copyright CCH Incorporated: Federal and State Tax Mar 5, 2014