Tax Rules: Final: 5703-15
5703-15-18 - Suspension of discount
for selling cigarettes below cost
(A) In addition to the power to revoke or suspend a wholesale
cigarette dealer's license, the tax commissioner may suspend
a dealer's right to any discount in the further purchase of
cigarette tax stamps or impressions upon finding by the
commissioner that the dealer has violated section 1333.12 of
the Revised Code by advertising, offering to sell, or selling
cigarettes below cost.
(B) Notice of the suspension shall be delivered to the
wholesale dealer personally or by certified mail. Such notice
shall describe the reason for suspending the discount and the
length of the time for which the suspension will be
effective.
(C) After the expiration of ten days after the dealer
received the notice of suspension, the tax commissioner shall
prepare a journal entry ordering the suspension of discount
as specified in the notice. Certified copies of the journal
entry shall be delivered to the dealer and the treasurer of
state personally or by certified mail. From the date of his
receipt of the journal entry the treasurer shall refuse to
allow a discount on the dealer's purchases of cigarette tax
stamps and meter impressions until the period of suspension
has expired.
(D)(1) A dealer notified of discount suspension under this
rule may, within ten days after receipt of the notice of
suspension, protest the suspension to the tax commissioner.
The protest must be filed personally or by certified mail and
must specify the basis of the protest.
(2) In the protest, the dealer may request a personal
appearance hearing. If such a hearing is requested, it shall
be held in Columbus within thirty days of the filing of the
protest. The hearing may be postponed by the commissioner for
up to fifteen days if necessary. The commissioner shall give
the dealer reasonable notice of the date and time for the
hearing by mailing the notice of hearing by certified mail to
the last known business address of the dealer. At the
hearing, the dealer may present any evidence to show he was
not in violation of section 1333.12 of the Revised Code or
any other information relevant to the proposed suspension. No
transcript or stenographic record of the hearing will be
made.
(3) If no hearing is requested, the commissioner shall
consider any information presented with the protest filed by
the dealer.
(4) The commissioner shall issue a journal entry setting
forth the final determination on the protest and suspension
and shall deliver the journal entry to the dealer personally
or by certified mail. The final determination of the
commissioner may be appealed to the board of tax appeals
pursuant to section 5717.02 of the Revised Code. After all
time limits for appeal have expired, the commissioner shall
deliver a certified copy of the journal entry to the
treasurer of state who shall implement the suspension
according to its terms.
(E) The first suspension of any dealer's discount shall be
for a period not to exceed sixty days. Any subsequent
suspension shall be for a period not to exceed one year.
(F) For purposes of this rule, selling below the presumptive
cost to the wholesaler as published by the department of
taxation constitutes sufficient cause to issue a notice of
suspension of the discount.
(G) For any violation of section 1333.12 of the Revised Code,
the commissioner may elect to pursue either the suspension of
discount as provided by this rule or the suspension or
revocation of the dealer's license as provided in section
1333.21 of the Revised Code.
Effective: 11-15-87
Promulgated under: 5703.14
Authorized by: 5703.05
Amplifies: 1333.12, 1333.21, 5743.05