①For prefectural tobacco tax imposed, or that should have been imposed, before July 1, 2006 (referred to as the "designated day" in the following paragraph and paragraph (3)), the provisions then in force continue to govern.

②Where there is a wholesale seller, etc. (meaning the wholesale seller, etc. prescribed in Article 74-2, paragraph (1) of the New Act; the same applies hereinafter in this paragraph and paragraph (7)) or tobacco retailer who holds for sale on the designated day manufactured tobacco that, before the designated day, was subject to a sale under Article 74-2, paragraph (1) of the Local Tax Act, or a sale or consumption, etc. under paragraph (2) of that Article (excluding sales prescribed in Article 74-6, paragraph (1), items (i) and (ii) of that Act), and where, pursuant to Article 156, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc., and Other Matters (Act No. 10 of 2006), those persons are, as manufacturers of manufactured tobacco, deemed to have removed that manufactured tobacco on the designated day from their manufacturing sites for manufactured tobacco and are to be subject to tobacco tax under that paragraph, prefectural tobacco tax is imposed, deeming those persons to have sold, as wholesale sellers, etc., that manufactured tobacco to tobacco retailers on the designated day, in the prefecture in which is located the storage place of that manufactured tobacco where those persons are wholesale sellers, etc., or the business office of the tobacco retailer that directly manages that manufactured tobacco where those persons are tobacco retailers. In this case, the tax base of the prefectural tobacco tax is the number of pieces of manufactured tobacco deemed to have been so sold, and prefectural tobacco tax is imposed at the tax rate specified in each of the following items according to the category of manufactured tobacco listed in that item:

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

④Where a person prescribed in paragraph (2) submits the return under the provisions of the preceding paragraph, together with a return concerning municipal tobacco tax prescribed in Article 17, paragraph (3) of the Supplementary Provisions or a return concerning tobacco tax prescribed in Article 156, paragraph (2) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc., and Other Matters (Act No. 10 of 2006), to the mayor of the municipality or district director prescribed in those provisions, the mayor of the municipality or district director who received them may accept the return under the provisions of the preceding paragraph. In this case, that return is deemed to have been submitted to the prefectural governor prescribed in that paragraph.

⑤A person who has submitted the return under the provisions of paragraph (3) must, by January 4, 2007, pay to the prefecture to which that return was submitted an amount equivalent to the amount of prefectural tobacco tax listed in item (ii) of that paragraph stated in that return.

⑦Where a wholesale seller, etc. receives the return, owing to cancellation of a sales contract or other unavoidable reasons, of manufactured tobacco, among the manufactured tobacco sold to a tobacco retailer whose business office is located within the area of that prefecture, on which prefectural tobacco tax was imposed or is to be imposed under the provisions of paragraph (2), an amount equivalent to that prefectural tobacco tax is, in conformity with the provisions of Article 74-14 of the New Act, deducted from the prefectural tobacco tax amount of that wholesale seller, etc., or refunded to that wholesale seller, etc., together with the deduction or refund under the provisions of that Article of an amount equivalent to the prefectural tobacco tax amount paid or to be paid on that manufactured tobacco. In this case, a document stating the details of the quantity of the returned manufactured tobacco for each type must be attached, as provided by Order of the Ministry of Internal Affairs and Communications, to the return that the wholesale seller, etc. is to submit to the prefectural governor pursuant to the provisions of Article 74-10, paragraphs (1) through (3) or paragraph (5) of the New Act.

The provisions of the New Act concerning automobile tax apply to automobile tax for fiscal year 2006 and thereafter, and for automobile tax up to fiscal year 2005, the provisions then in force continue to govern.