Equity Assessment Prepayment Requirement
PA 327 of 1993 was amended on January 8, 2004. The amendment required all NPMs who anticipate selling their cigarettes and RYO products in Michigan to make a pre-payment equity assessment by February 9, 2004, for 2004 sales. The bill also requires NPMs to make additional annual payments by March 1 of each year, based on the anticipated cigarette and RYO tobacco sales for that calendar year.
The equity assessment is based on the estimated tobacco sales for the current year or a minimum payment of $10,000 to be paid prior to commencing selling cigarette and RYO tobacco products into the state of Michigan.
The amendment to PA 327 states that a stamping agent shall not affix a State of Michigan stamp to any package of cigarettes or shipping container of RYO tobacco of a non-participating manufacturer unless the manufacturer is listed on the Department's Web site at ww.michigan.gov/tobaccotaxes.
The Department may seize or confiscate from any person a non-participating manufacturer's cigarettes or RYO tobacco products in that person's possession that are in violation of this Act.
Prepayment equity assessments required by PA 327 of 1993, as amended are due by March 1st of each year or before a new manufacturer commences selling cigarettes or roll-your-own in Michigan.