Section 471. Imposition of cigarette tax

1. There is hereby imposed and
  shall be paid a tax on all cigarettes possessed  in  the  state  by  any
  person  for sale, except that no tax shall be imposed on cigarettes sold
  under such circumstances that this state is without power to impose such
  tax or sold  to  the  United  States  or  sold  to  or  by  a  voluntary
  unincorporated  organization  of  the  armed forces of the United States
  operating a  place  for  the  sale  of  goods  pursuant  to  regulations
  promulgated by the appropriate executive agency of the United States, to
  the extent provided in such regulations and policy statements of such an
  agency  applicable to such sales. Such tax on cigarettes shall be at the
  rate of two dollars and seventy-five cents for each twenty cigarettes or
  fraction thereof, provided, however, that if  a  package  of  cigarettes
  contains  more than twenty cigarettes, the rate of tax on the cigarettes
  in  such  package  in  excess  of  twenty  shall  be   sixty-eight   and
  three-quarters  cents for each five cigarettes or fraction thereof. Such
  tax is intended to be imposed upon only one sale of the same package  of
  cigarettes.  It  shall  be presumed that all cigarettes within the state
  are subject to tax until the contrary is established, and the burden  of
  proof  that  any  cigarettes are not taxable hereunder shall be upon the
  person in possession thereof.
    2. It is intended that the ultimate incidence of and liability for the
  tax shall be upon the consumer, and that any agent or dealer  who  shall
  pay  the  tax  to  the  tax  commission  shall  collect the tax from the
  purchaser or consumer. Except as hereinafter provided, the tax shall  be
  advanced  and  paid  by  the  agent.  The  agent shall be liable for the
  collection and payment of the tax on cigarettes imposed by this  article
  and  shall  pay  the tax to the tax commission by purchasing, under such
  regulations as it shall prescribe, adhesive stamps of such  designs  and
  denominations  as  it shall prescribe. The tax on cigarettes may also be
  paid by or through the use of metering machines if the tax commission so
  prescribes. Agents, located within or without the state, shall  purchase
  stamps  and  affix  such  stamps in the manner prescribed to packages of
  cigarettes to be sold  within  the  state,  in  which  case  any  dealer
  subsequently  receiving  such stamped packages of cigarettes will not be
  required to purchase and affix stamps on such  packages  of  cigarettes.
  Notwithstanding  any other provision of this article, the tax commission
  may by regulation provide that the tax on  cigarettes  imposed  by  this
  article shall be collected without the use of stamps.
    3.  The  amount of taxes advanced and paid by the agent as hereinabove
  provided shall be added to and collected as part of the sales  price  of
  the cigarettes.
    4.  (a)  Notwithstanding  any  provision  of  law  to the contrary, no
  person, including but not limited to  a  tobacco  product  manufacturer,
  shall sell unstamped packages of cigarettes to any agent, if such person
  has  not  been provided with a certification by the agent as required in
  paragraph (b) of this subdivision.
    (b) Any agent who purchases unstamped packages of cigarettes from  any
  person,  which  are  intended  for  resale  in  or into the state, shall
  provide such person  and  the  department  with  a  certification  under
  penalty  of perjury that such cigarettes will not be resold by the agent
  in violation of the terms of this article. Such certification  shall  be
  provided  to  such  person and the department prior to the first sale of
  such cigarettes by such person to the agent following the effective date
  of this subdivision, and annually thereafter, on such form as  shall  be
  prescribed by the commissioner.