1. A. Each licensee shall:

   1. (1) Take a monthly inventory at the beginning of business on the first day of each month or at the close of business on the last day of each month of all cigarettes on the premises. Any distributor who finds it impractical to take inventory on these dates shall notify the Comptroller of another specific date on which inventory will be taken. Inventories shall exclude cigarettes:

      1. (a) In vending machines; and
      2. (b) Transferred to retail stock on written memorandum.
   2. (2) Obtain invoices covering all purchases of cigarettes whether tax stamped or unstamped.

   3. (3) Maintain a daily receiving record of cigarettes which includes the following:

      1. (a) Date;
      2. (b) Invoice number;
      3. (c) Quantity;
      4. (d) Brand; and
      5. (e) Supplier name.

   4. (4) Prepare an invoice for every sale of cigarettes which includes:

      1. (a) Name and address of the purchaser; and
      2. (b) Amount of cigarettes purchased.
   5. (5) Retain invoices covering all purchases of Maryland cigarette tax stamps.
   6. (6) Maintain a daily record of tax stamps affixed to cigarettes.
   7. (7) Maintain a record of names and addresses of all retailers to whom cigarettes are sold.

   8. (8) Prepare credit memoranda with the date the following transactions were completed:

      1. (a) Cigarettes returned by customers to wholesale stock; and
      2. (b) Unstamped and tax stamped cigarettes returned to manufacturers.

   9. (9) Prepare memoranda providing details of the exchange of fresh cigarettes for stale cigarettes for factory representatives indicating:

      1. (a) The name and address of the factory representative; and
      2. (b) The company represented.
2. B. A wholesaler who prepares a written memo when removing cigarettes from wholesale stock for retail sales is not required to prepare a retail invoice.

Authority: Tax-General Article, §§2-103, 12-303, and 12-306, Annotated Code of Maryland

Effective date:

Regulation .01 effective June 27, 1961

Regulation .01D repealed effective January 23, 1981 (8:2 Md. R. 110)

Regulation .02 effective April 28, 1965

Regulations .03—.04 effective June 27, 1961

Regulation .05 effective July 1, 1969

Regulation .05A amended effective December 21, 1981 (8:25 Md. R. 1993)

Regulation .05F adopted effective November 16, 1979 (6:23 Md. R. 1838)

Regulation .05 repealed and new Regulation .05 adopted effective September 19, 1988 (15:19 Md. R. 2245)

Regulations .06—.08 effective June 27, 1961

Regulation .07 repealed effective August 6, 1990 (17:15 Md. R. 1853)

Regulation .09 adopted effective January 1, 1987 (13:25 Md. R. 2656)

Chapter revised effective August 6, 1990 (17:15 Md. R. 1854)

Regulation .05 amended effective July 1, 1993 (20:7 Md. R. 639)

Regulation .05G amended effective July 10. 2023 (50:13 Md. R. 511)

Regulation .06 amended effective July 10. 2023 (50:13 Md. R. 511)

Regulation .07B amended effective July 10. 2023 (50:13 Md. R. 511)

Regulation .08 adopted effective May 29, 2000 (27:10 Md. R. 964)

Regulation .08 repealed as an emergency provision effective May 1, 2011 (38:11 Md. R. 670); emergency extended to March 16, 2012 (38:21 Md. R. 1274); repealed permanently effective November 28, 2011 (38:24 Md. R. 1499)

Regulation .08D amended effective August 1, 2005 (32:13 Md. R. 1110); September 1, 2006 (33:17 Md. R. 1436)

Regulation .08H adopted effective March 23, 2009 (36:6 Md. R. 487)

Regulation .09 adopted effective March 4, 2013 (40:4Md. R. 344)