Section 67-6-357 - Credit on retail tobacco sales tax

(a) A credit shall be granted in the manner provided in subsection (b) for the amount of the sales tax due on tobacco buydown payments included in the sales price of tobacco sold at retail.(b) The credit shall apply such that sales tax is owed on the sales price of the tobacco less the tobacco buydown payment associated with such sale.(c) For purposes of this section the following definitions apply:(1) 'Tobacco buydown agreement' means an agreement whereby an amount, whether paid in money, credit, or otherwise, is received by a retailer from a manufacturer or wholesaler based upon the quantity and unit price of tobacco sold at retail that requires the retailer to reduce the sales price of the product to the purchaser without the use of a manufacturer's coupon or redemption certificate; and(2) 'Tobacco buydown payment' means the amount due to the retailer pursuant to a tobacco buydown agreement. Acts 2003, ch. 418, § 6.