Licensed Distributor Reports

1
New Reporting Requirements T.C.A. 67-4-2604

• Licensed Distributor Reports Wholesaler to
  Wholesaler Reports

2
Who is Required to Report?

• Tennessee Code Annotated section 67-4-2604
  requires each licensed agent to submit these
  reports by the 15th day of every month.
• The following persons may be granted a license
  under the licensure provisions of Tenn. Code Ann.
  67-4-1015(c)(1) manufacturing distributors
  tobacco manufacturer warehouses wholesale
  dealers and jobbers and tobacco distributors.

3
When are you Required to Report and What are the
Penalties for False Reporting?

• Must be submitted no later than the fifteenth
  (15th) calendar day of each month.
• If a licensed agent is found to have knowingly
  filed a false report, the commissioner is
  authorized to revoke or suspend the license of
  such licensed agent. Civil penalties may also be
  imposed
• These reports are filed under penalty of perjury.

4
Licensed Distributor ReportsWhat has Changed?

• Biggest change is that licensed agents are now
  required to report ALL Brand Families (not just
  NPM Brand Families) to which they either
• AFFIX THE TAX STAMP
• - OR -
• OTHERWISE PAY THE TAX DUE (In the case of
  roll-your-own, this would be paying the Other
  Tobacco Product Tax due).

5
Licensed Distributor ReportsHow to Fill Out
Properly

• Reporting Period
• Month If you stamped the product or paid tax on
  it in June, then you should write June in the
  blank beside Month.
• Year If you stamped the product or paid tax on
  it in 2009, then you should write 2009 in the
  blank beside Year.
• Reporting will most often be for the previous
  month and year, due by the 15th the following
  month.

6
Licensed Distributor ReportsHow to Fill Out
Properly (continued)

• Tobacco Wholesale Account Number This number
  should begin with 8600. This is not your excise
  tax account number or stamp account number.
• Business Name The name of your business as
  submitted on your tobacco licensing application.
• Address Business Address.
• City, State, Zip Same as abovethe address of
  your business.
• Email address This should be filled out for a
  company officer who can answer questions on the
  forms and the information contained on them.

7
Licensed Distributor ReportsHow to Fill Out
Properly (continued)

• BOXES ON THE RIGHT-HAND SIDE OF THE PAGE .
  HOW DO I KNOW WHICH ONE(S) TO CHECK?
• If you have previously filed a report, made a
  mistake on such report which needs to be
  corrected, and are filing an amended report
  check the box titled AMENDED REPORT.
• There are additional requirements for filing an
  amended report which will be covered in a later
  slide. These requirements can be found on the
  Instructions page.

8
Licensed Distributor ReportsHow to Fill Out
Properly (continued)

• Packaging Box Packaging is now only required
  to be submitted ANNUALLY, BY AUGUST 30TH OF EACH
  YEAR. If you check this box, you are certifying
  that the packaging has not changed since the last
  LDR submission. This box should be checked only
  if you ARE NOT submitting packaging.
• If packaging has changed, DO NOT check this box,
  but rather, include the new packaging samples
  with your report.

9
Licensed Distributor ReportsHow to Fill Out
Properly (continued)

• There are three additional boxes on the
  right-hand side of this form. If you are not
  reporting any quantities/numbers on your Licensed
  Distributor Report, you must check one of the
  following boxes
• No TN Sales Activity
• Big Cigars Only
• All products pre-stamped or tobacco product tax
  pre-paid during this reporting period (No TN
  stamps were affixed during this reporting period).

10
Licensed Distributor ReportsHow to Fill Out
Properly (continued)

• No TN Sales Activity
• This means you had no Tennessee sales activity in
  the previous monthwhether stamped or
  unstampedor TN tax paid.
• If you affixed any Tennessee tax stamps to packs
  of cigarettes, bidis, or little cigars or paid
  the Tennessee tax on any roll-your-own tobacco,
  DO NOT CHECK THIS BOX BUT RATHER FILL OUT THOSE
  NUMBERS ON THE REPORT.

11
Licensed Distributor ReportsHow to Fill Out
Properly (continued)

• Big Cigars Only
• Only check this box if the only tobacco product
  you paid tax on in Tennessee during the prior
  month was big cigars.

12
Licensed Distributor ReportsHow to Fill Out
Properly (continued)

• All Products Pre-Stamped or Tobacco Product
  Tax Pre-Paid this Reporting Period.
• Check this box only if your company DID NOT AFFIX
  TENNESSEE TAX STAMPS TO ANY CIGARETTES OR BIDIS
  DURING THE PRIOR MONTH AND/OR DID NOT PAY ANY
  OTHER TOBACCO PRODUCT TAX ON ANY ROLL-YOUR-OWN
  TOBACCO DURING THE PRIOR MONTH.

13
Licensed Distributor ReportsHow to Fill Out
Properly (continued)

• Box reading IF ANY UNSTAMPED OR STAMPED
  TOBACCO PRODUCTS WERE SOLD TO ANOTHER LICENSED
  DISTRIBUTOR, ALSO ATTACH W2W FORM TO THIS REPORT.
• New Requirement - Check this box if you sold any
  tobacco products to another licensed agent,
  whether you stamped that product or not and fill
  out the W2W form. Instructions for filling out
  that form will be covered later.

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Licensed Distributor ReportsHow to Report
Product You Affixed a Tax Stamp To or Otherwise
Paid the Tax Due (RYO)

• Column 1 List the Number of cigarettes, bidis
  (also referred to as beedies) or little
  cigarsor ounces of RYOproducts that you either
  affixed a tax stamp to or otherwise paid the tax
  due.
• This number should be in individual increments
  for cigarettes, bidis and little cigars. For
  example, if you tax stamped one carton worth of
  X brand cigarettes during the prior month, you
  would need to report 200 in this column as the
  number of cigarettes stamped.

15
Licensed Distributor ReportsHow to Report
Product You Affixed a Tax Stamp To or Otherwise
Paid the Tax Due (RYO)

• Column 1 continued
• If you are reporting RYO, you must report this
  amount in ounces.
• For example, if you paid the other tobacco
  product tax on 3-8 ounce bags of RYO, then you
  would need to report the number 24.0 ounces in
  column one.

16
Licensed Distributor ReportsHow to Fill Out
Properly

• Column 2 Brand Family
• This is the brand family name of the cigarettes,
  little cigars, bidis, or RYO, on which you paid
  tax during the prior month.
• For example if you paid tax on one pack of
  Marlboro Lights, two packs of Marlboro Reds, and
  one pack of Marlboro Ultra Lights during the
  prior month, you would need to list Marlboro in
  the brand family identification column and report
  the appropriate amount (in this case, 80
  cigarettes).

17
Licensed Distributor ReportsHow to Fill Out
Properly

• Column 3 Manufacturer Name and Address
• This should be the name and address of the
  company that actually manufactured the
  cigarettes, bidis, little cigars or RYO, not the
  name of the importer of such cigarettes, bidis or
  RYO in the case of imported tobacco products, nor
  the name of the wholesaler that sold you the
  cigarettes, bidis, little cigars or RYO.

18
Licensed Distributor ReportsHow to Fill Out
Properly

• Column 4 Type of Product
• Please list the following for type of product
• If cigarettes, list C or spell out cigarettes.
• If little cigars, list LC or spell out little
  cigars.
• If roll-your-own, list RC or spell out
  roll-your-own.
• If bidis or beedies, list B or spell out bidis
  (or beedies).

19
Licensed Distributor ReportsHow to Fill Out
Properly

• Column 5 Name and address of the entity from
  whom each brand family was purchased
• This should be the name and address of either
  another licensed agent (wholesaler) or the
  manufacturer or importer of the brand family from
  which you purchased the cigarettes, RYO, bidis,
  or little cigars.

20
Licensed Distributor ReportsHow to Fill Out
Properly

• Column 6 Name and address of first importer
  (for foreign manufactured brand families only)
• This should be the name and address of the
  importer, not the manufacturer. This company
  will be located in the United States and have a
  physical U.S. address.

21
Licensed Distributor ReportsHow to Fill Out
Properly

• Penalty of Perjury Provision Asks you to read
  and states that the report only contains
  cigarettes (bidis also qualify here as
  cigarettes) or little cigars on which you have
  placed a tax stamp, or RYO on which you have paid
  the tax due. You are required to initial this
  box and then sign the form directly below it.
• Clearly print the name of the company officer who
  signed this provision and then his/her title
  below that.
• Date the report the date you actually sign it,
  and provide a working phone number and fax number.

22
Licensed Distributor ReportsHow to Fill Out
Properly

• If you are submitting more than one page of
  tobacco products on this form, please fill out
  the page number blanks in the lower right hand
  corners.
• Example You are submitting a total of four
  pages. The first page would be numbered Page 1
  of 4, second page numbered Page 2 of 4, etc.
• Additional pages must also be completely filled
  out (account number, name, month, year, signature
  and date in addition to the quantity being
  reported). Submit as many pages as necessary to
  report all product on which the tax was paid in
  the prior month.

23
Licensed Distributor ReportsHow to Fill Out
Properly

• Please note the address
• to which these reports must be sent
• Tennessee Department of Revenue, Andrew Jackson
  Building, P.O. Box 190590, Nashville, TN 37219.
• DO NOT ATTACH THIS REPORT TO YOUR TOB 552 FORMS
  THEY ARE SENT TO DIFFERENT ADDRESSES.
• If you sold any tobacco products to another
  licensed agent during the prior month be sure
  to include the W2W form as well.

24
Licensed Distributor ReportsHow to Fill Out
Properly

• Things to Know and Remember
• No processing of incomplete or illegible forms.
• Fill out the current form!
• Signature must be in BLUE permanent ink.
• Always date form after you sign it.
• Entries must be in permanent ink or typewritten.
  No pencil entries allowed.
• Retain a copy for your files!
• If this is an amended reportsee the next slide!

25
Amended Licensed Distributor ReportsHow to Fill
Out Properly

• Fill out the form as discussed aboveand
• Attach all documentation to support the new
  numbers being submitted.
• This includes invoices of all sales activity and
  a detailed explanation as to why the report needs
  to be amended.

26
Wholesaler to Wholesaler Reporting Form (W2W
Form)

• Who Must Fill This Report Out? Any licensed
  agent that sold any tobacco products to another
  licensed agent (and you checked this box on the
  LDR form), whether stamped or unstamped! Do not
  fill this form out if you did not have any such
  sales in the prior month.
• When Must This Be Submitted? At the same time as
  the Licensed Distributor Report no later than
  the 15th day of each calendar month following the
  month in which sales took place.

27
W2W FormHow to Fill out Properly (continued)

• Reporting Period As with the LDR, this line
  should be filled in with the month and year in
  which the sales activity occurred. Submit this
  form when you submit your LDRs.
• If you sold the product to another licensed agent
  in June, then you should write June in the
  blank beside month.
• Year If sold the product to another licensed
  agent in 2009, then you should write 2009 in
  the blank beside year.

28
W2W FormHow to Fill out Properly (continued)

• Business Name. The name of your business as
  submitted on your tobacco licensing application.
• Address Business Address.
• City, State, Zip Same as abovethe address of
  your business.
• Tobacco Wholesale Account Number This number
  should begin with 8600. Again, this is not your
  excise tax account number or your stamp account
  number.

29
W2W FormHow to Fill Out Properly (continued)

• Name and title of person authorizing the report.
  This should be the name of a company officer.
• Email address This should be filled out for a
  company officer who can answer questions
  pertaining to the forms and the information
  contained on them.
• A working phone number and fax number should be
  included here for the business.

30
W2W FormHow to Fill Out Properly (continued)

• Column One The date of shipment, or the date
  the product was sold/transferred to another
  licensed agent or distributor, should be recorded
  here.
• Column Two Using initials, indicate how the
  product was shipped, whether by distributors
  truck (DT), common carrier (CC), parcel post
  (PP), or customer truck (CT).

31
W2W FormHow to Fill Out Properly (continued)

• Column 3 Record the invoice number evidencing
  the sale/transfer of this product. There should
  be one for every sale.
• Column 4 Enter the brand families
  sold/transferred. Fill out a separate line for
  each brand family.
• Column 5 List what type of product was
  sold/transferredcigarettes (C), little cigars
  (LC), bidis (or beedies) (B), or roll-your own
  tobacco (RYO).

32
W2W FormHow to Fill Out Properly (continued)

• Column 6 Indicate whether the product was
  sold/transferred stamped (S) or unstamped (U)
  with respect to each brand family.
• Column 7 Provide the complete name and address
  of the company to whom the cigarettes were sold.
• Column 8 Enter the number of sticks (or ounces
  if RYO) of product sold/transferred.

33
W2W FormHow to Fill Out Properly (continued)

• If using more than one page, number accordingly
  in the lower-right hand corner of the form.
• Penalty of perjury line must be initialed,
  signature line filled in by a company
  representative, and form correctly dated, all in
  blue permanent ink.
• Note the address to which the form must be sent
  Tennessee Department of Revenue, Andrew Jackson
  Building, P.O. Box 190590, Nashville, TN 37219.

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Questions or Concerns?

• If you have any questions when filling out these
  new forms, please do not hesitate to contact our
  office at the number listed below
• Rosanna Rostad, Paralegal, [phone].