Supplementary Provisions, Article 10Transitional Measures Concerning Prefectural Tobacco Tax

①Except as otherwise provided, with regard to prefectural tobacco tax imposed, or that should have been imposed, before the date of enforcement of the provisions listed in Article 1, item (ii) of the Supplementary Provisions, the provisions then in force continue to govern.

②If there is a wholesale seller, etc. prescribed in Article 74-2, paragraph (1) of the Local Tax Act (hereinafter in this Article through Article 13 of the Supplementary Provisions referred to as a "wholesale seller, etc.") or a tobacco retailer prescribed in Article 74, paragraph (1), item (iv) of the New Act (hereinafter in this Article through Article 13 of the Supplementary Provisions referred to as a "tobacco retailer") that, on October 1, 2018, holds for sale manufactured tobacco prescribed in Article 74, item (i) of the Former Act (excluding third-class cigarettes prescribed in Article 12, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Local Tax Act, etc. (Act No. 2 of 2015; referred to as the "2015 Local Tax Act, etc. Amendment Act" in Article 23, paragraph (2) of the Supplementary Provisions); hereinafter in this Article referred to as "manufactured tobacco") for which a sale prescribed in Article 74-2, paragraph (1) of the Local Tax Act or a sale or consumption, etc. prescribed in paragraph (2) of that Article (excluding sales prescribed in Article 74-6, paragraph (1), items (i) and (ii) of that Act; hereinafter in this Article through Article 13 of the Supplementary Provisions referred to as "sale, etc.") took place before that date, and where, pursuant to Article 51, paragraph (1) of the Supplementary Provisions of the Income Tax Act Amendment Act, such a person is deemed to have removed that manufactured tobacco on that date from its manufacturing site of manufactured tobacco as the manufacturer of manufactured tobacco and is to be subject to tobacco tax pursuant to that paragraph, prefectural tobacco tax is imposed, deeming that such a person, as a wholesale seller, etc., sold that manufactured tobacco to a tobacco retailer on that date, in the prefecture in which the storage place of that manufactured tobacco is located where the person is a wholesale seller, etc., or in which the business office of the tobacco retailer that directly manages that manufactured tobacco is located where the person is a tobacco retailer. In this case, the tax base of the prefectural tobacco tax is the number of pieces of manufactured tobacco deemed to have been sold, and the tax rate of the prefectural tobacco tax is 70 yen per 1,000 pieces.

③A person prescribed in the preceding paragraph must submit a return stating the following matters, for each storage place prescribed in that paragraph or each tobacco retailer's business office, in the form specified by Order of the Ministry of Internal Affairs and Communications, by October 31, 2018, to the prefectural governor of the prefecture in which that storage place or that tobacco retailer's business office is located:

④Where a person prescribed in paragraph (2) submits the return under the preceding paragraph, together with the return relating to municipal tobacco tax prescribed in Article 23, paragraph (3) of the Supplementary Provisions or the return relating to tobacco tax prescribed in Article 51, paragraph (2) of the Supplementary Provisions of the Income Tax Act Amendment Act, to the mayor of a municipality or the district director prescribed in those provisions, the mayor of a municipality or the district director who receives the return may accept the return under 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 a return under the provisions of paragraph (3) must pay to the prefecture to which the return was submitted, by April 1, 2019, 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. has, owing to cancellation of a sales contract or other unavoidable reasons, received the return of manufactured tobacco on which prefectural tobacco tax was imposed or should have been imposed pursuant to the provisions of paragraph (2), out of the manufactured tobacco it sold to a tobacco retailer whose business office is located within the area of the prefecture, the amount equivalent to that prefectural tobacco tax is, in accordance with the provisions of Article 74-14 of the Local Tax Act, deducted from the amount of prefectural tobacco tax pertaining to that wholesale seller, etc., or refunded to that wholesale seller, etc., together with the deduction or refund under that Article of the amount equivalent to the amount of prefectural tobacco tax paid or to be paid on that manufactured tobacco. In this case, a document stating particulars concerning the number of pieces for each brand of the manufactured tobacco relating to that return must be attached, as provided by Order of the Ministry of Internal Affairs and Communications, to the return that the wholesale seller, etc. is required to submit to the prefectural governor pursuant to the provisions of Article 74-10, paragraphs (1) through (3) or paragraph (5) of that Act.