Sec. 76.4. Diplomatic missions and diplomatic personnel

Tax Law, §§ 471(1), 471-a, 475 and 481(2)

(a) Diplomatic missions and diplomatic personnel, as purchasers of cigarettes for their own use or consumption and not for purposes of resale, are exempt from the cigarette tax imposed pursuant to article 20 of the Tax Law to the extent provided for by the United States Department of State, Office of Foreign Missions' national tax exemption program.

(b)

(1) Diplomatic missions as used in this section means permanent missions to public international organizations, such as the United Nations and the Organization of American States, and foreign embassies and consulates.

(2) Diplomatic personnel as used in this section means foreign embassy and consular officials, certain foreign embassy and consular employees, certain officers and employees of the United Nations, of other public international organizations and of permanent missions to such organizations and certain employees of the Coordination Council for North American Affairs.

(c) Generally, in order for diplomatic missions and diplomatic personnel to receive an exemption from the cigarette tax, such missions or personnel must establish their exempt status with the United State Department of State or, in the case of employees of the Coordination Council for North American Affairs, with the American Institute in Taiwan. The United States Department of State or the American Institute in Taiwan will certify that such missions or personnel are exempt from tax and arrange, or cause the arrangements, for such missions of personnel to receive from designated bonded warehouses cigarettes upon which the seller has not prepaid and precollected the cigarette tax.

(d)

(1) Diplomatic missions and diplomatic personnel may purchase cigarettes upon which the seller has not prepaid and precollected the cigarette tax by issuing to the seller of such cigarettes proof of exempt status as certified by the Department of State or the American Institute in Taiwan. Such proof should be given to the seller at the time of the initial purchase. Separate proof of exempt status need not be given for each additional purchase of cigarettes, provided each delivery of cigarettes is substantiated as being exempt from tax with an individual bill, invoice, receipt or other form of written evidence given by the seller showing the diplomatic missions or diplomatic personnel as the purchasers. Every bill, invoice, receipt or other form of written evidence must indicate the quantity of cigarettes delivered, the purchase price of the cigarettes without regard to any exemption and the price paid or to be paid by the exempt purchasers for such cigarettes. In addition, such evidence of exemption must be signed and dated by the individual who will take delivery of the cigarettes on behalf of such missions or personnel.

(2) Sellers of cigarettes must establish an acceptable system of associating copies of these individual bills, invoices, receipts and other forms of evidence of exemption from tax with the proof of exempt status initially received from the purchasers. All purchases of cigarettes upon which the seller has not prepaid and precollected the cigarette tax by diplomatic missions or diplomatic personnel must be billed directly to the entities or persons and paid from the funds of such entities or persons.

(3) A licensed cigarette agent must report all sales of cigarette to diplomatic missions and diplomatic personnel in its monthly cigarette tax return.

(e)

(1) Tax exemption cards issued to diplomatic missions and diplomatic personnel by the United States Department of State or the American Institute in Taiwan may not be used to purchase cigarettes upon which the seller has not prepaid and precollected the cigarette tax.

(2) Notwithstanding any other provision in this Subchapter, no tax exemption will be provided nor will a refund or credit by granted where diplomatic missions and diplomatic personnel purchase cigarettes by any means other than as provided for in this section. The possession within this State at any one time of more than 400 cigarettes in unstamped (or unlawfully stamped) packages by any diplomatic mission or diplomatic personnel, except as provided herein, shall be presumptive evidence that such cigarettes are subject to tax. Diplomatic missions and diplomatic personnel who or which purchase cigarettes under any other circumstances must pay the cigarette tax at the time of purchase by remitting the tax to the seller as part of the purchase price of the cigarettes.