PURPOSE: This rule clarifies the reporting requirements, surety bond requirements and the approval necessary for purchases of tax stamps or meter units on the deferred payment basis.

1. (1) All wholesalers who purchase tax stamps or meter units on the deferred payment basis must file the monthly report required by subsection 2 of section 149.041, RSMo on the fifteenth day of each month covering the previous calendar month.
2. (2) All purchases of tax stamps or meter units on the deferred payment basis must have the prior approval of the director. The total amount of outstanding credit granted shall at no time exceed one hundred percent (100%) of the surety bond furnished by the wholesaler.
3. (3) The surety bond required under section 149.025, RSMo must be issued by an authorized corporate surety company on a bond form approved by the director. Any surety on a bond furnished by a cigarette wholesaler shall be released and discharged from any and all prospective liability to the state occurring after the expiration of ninety (90) days from the date upon which the surety shall have lodged with the director a written request to be released and discharged, but this provision shall not operate to relieve, release or discharge the surety from any liability already accrued or which shall accrue before the expiration of the ninety (90)-day period. The director, promptly upon receiving any request, shall notify the cigarette wholesaler who furnished the bond, and unless the wholesaler shall file, on or before the expiration of the ninety (90)-day period, with the director a new bond fully complying with the provisions of section 149.025, RSMo, the director shall forthwith revoke all credit privileges and notify the wholesaler that all purchases must be made in cash. 12 CSR 10-16
4. (4) The payment of the St. Louis County or Jackson County cigarette tax imposed by Chapters 66 and 210, RSMo respectively, may not be deferred.

AUTHORITY: sections 66.380, 149.015 and 210.320, RSMo Supp. 1993 and 136.030, 136.120 and 149.021, RSMo 1986.* Cigarette Tax Regulation 8 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Amended: Filed Feb. 18, 1983, effective June 11, 1983.

*Original authority: 66.380, RSMo 1967, amended 1993; 136.030, RSMo 1945, amended 1947, 1949, 1965; 136.120, RSMo 1945; 149.015, RSMo 1974, amended 1982, 1993; 149.021, RSMo 1974, amended 1982; and 210.320, RSMo 1939, amended 1969, 1976, 1978, 1993.