Supplementary Provisions, Article 14Transitional Measures Concerning Municipal Tobacco Tax

①The provisions then in force continue to govern municipal tobacco tax imposed, or that should have been imposed, before July 1, 2003 (referred to as the "designated day" in the following paragraph and paragraph (3)).

②Where, as of the designated day, there is a wholesale seller, etc. (meaning a wholesale seller, etc. prescribed in Article 465, paragraph (1) of the New Act; the same applies hereinafter in this paragraph and paragraph (7)) or a tobacco retailer that holds for sale manufactured tobacco for which a sale under Article 465, paragraph (1) of the Local Tax Act, or a sale or consumption, etc. under paragraph (2) of that Article (excluding a sale prescribed in Article 469, paragraph (1), items (i) and (ii) of that Act), was made before the designated day, and tobacco tax is to be imposed on those persons under the provisions of Article 131, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2003) on the basis that, as manufacturers of manufactured tobacco, they removed that manufactured tobacco from their manufacturing sites of manufactured tobacco on the designated day, municipal tobacco tax is imposed, on the basis that those persons, as wholesale sellers, etc., sold that manufactured tobacco to a tobacco retailer on the designated day, in the municipality in which the storage place of that manufactured tobacco is located where those persons are wholesale sellers, etc., or in which the business office of the tobacco retailer that directly manages that manufactured tobacco is located where those persons are tobacco retailers. In this case, the tax base of the municipal tobacco tax is the number of pieces of manufactured tobacco deemed to have been sold, and municipal tobacco tax is imposed at the tax rate set forth in the following items according to the category of manufactured tobacco set forth in those items.

③A person prescribed in the preceding paragraph must, for each storage place prescribed in that paragraph or each tobacco retailer's business office, submit a return stating the following particulars, in the form specified by Order of the Ministry of Internal Affairs and Communications, to the mayor of the municipality in which that storage place or business office of the tobacco retailer is located, within one month from the designated day:

④If a person prescribed in paragraph (2) submits the return under the provisions of the preceding paragraph, together with a return for prefectural tobacco tax prescribed in Article 7, paragraph (3) of the Supplementary Provisions or a return for tobacco tax prescribed in Article 131, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 8 of 2003), to the prefectural governor or the district director of the tax office prescribed in those provisions, the prefectural governor or the district director that received it may accept the return under the provisions of the preceding paragraph. In this case, that return is deemed to have been submitted to the mayor of the municipality prescribed in that paragraph.

⑤A person who has submitted a return under the provisions of paragraph (3) must, by January 5, 2004, pay an amount equivalent to the municipal tobacco tax amount set forth in item (ii) of that paragraph stated in that return to the municipality to which that return was submitted.

⑦Where a wholesale seller, etc. has received the return of manufactured tobacco, among the manufactured tobacco sold to a tobacco retailer whose business office is located within the area of that municipality, on which municipal tobacco tax was imposed or should have been imposed under the provisions of paragraph (2), owing to rescission of the sales contract or other unavoidable grounds, an amount equivalent to that municipal tobacco tax is, in accordance with the provisions of Article 477 of the New Act, deducted from the municipal tobacco tax amount pertaining to that wholesale seller, etc., or refunded to that wholesale seller, etc., together with the deduction or refund of the amount equivalent to the municipal tobacco tax amount paid or to be paid for that manufactured tobacco. In this case, a document stating the details of the quantity of manufactured tobacco pertaining to that return for each type must be attached, as specified by Order of the Ministry of Internal Affairs and Communications, to the return that the wholesale seller, etc. is to submit to the mayor of the municipality under the provisions of Article 473, paragraph (1), (2) or (4) of the New Act.