Supplementary Provisions, Article 12Transitional Measures Concerning Municipal Tobacco Tax

①The provisions then in force continue to govern municipal tobacco tax that was imposed, or should have been imposed, before October 1, 2010 (referred to as the "designated day" in the following paragraph and paragraph (3)).

②Where 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, on the designated day, 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 those persons come to be subject to tobacco tax under Article 39, paragraph (1) of the Supplementary Provisions of the Income Tax Act Amendment Act on the ground that, as manufacturers of manufactured tobacco, they are deemed to have removed that manufactured tobacco from their manufacturing sites of manufactured tobacco on the designated day, then, deeming those persons, as wholesale sellers, etc., to have sold that manufactured tobacco to a tobacco retailer on the designated day, municipal tobacco tax is imposed in the municipality in which is located, where those persons are wholesale sellers, etc., the storage place of that manufactured tobacco, or, where those persons are tobacco retailers, the business office of the tobacco retailer that directly manages that manufactured tobacco. 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 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 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 tobacco retailer's business office 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 the return relating to prefectural tobacco tax prescribed in Article 6, paragraph (3) of the Supplementary Provisions or the return relating to tobacco tax prescribed in Article 39, paragraph (2) of the Supplementary Provisions of the Income Tax Act Amendment Act, to the prefectural governor or the district director prescribed in those provisions, the prefectural governor or the district director who received the submission 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 the return under the provisions of paragraph (3) must pay, by March 31, 2011, an amount equivalent to the municipal tobacco tax amount listed in item (ii) of that paragraph stated in that return to the municipality to which the return was submitted.

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 municipality, on which municipal tobacco tax was imposed or is to be imposed under the provisions of paragraph (2), an amount equivalent to that municipal tobacco tax is, in conformity with the provisions of Article 477 of the New Act, deducted from the municipal 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 municipal 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 mayor of the municipality pursuant to the provisions of Article 473, paragraph (1), (2) or (4) of the New Act.

⑧The provisions of Article 485-13, paragraph (1) of the New Act apply to municipal tobacco tax for fiscal year 2010 and thereafter, and the provisions then in force continue to govern the fixed tobacco tax amount for the tobacco tax prescribed in Article 485-13, paragraph (1) of the Former Act up to and including fiscal year 2009.

⑨For the application of Article 485-13, paragraph (1) of the New Act to municipal tobacco tax for fiscal year 2010, the phrase "the proportion obtained by dividing" in that paragraph is deemed to be replaced with "the proportion obtained by multiplying by 117/100 the proportion obtained by dividing".

⑩For the application of Article 485-13, paragraph (1) of the New Act to municipal tobacco tax for fiscal year 2011, the phrase "the proportion obtained by dividing" in that paragraph is deemed to be replaced with "the proportion obtained by multiplying by 140/100 the proportion obtained by dividing".

⑪For the application of Article 485-13, paragraph (1) of the New Act to municipal tobacco tax for fiscal year 2012, the phrase "the proportion obtained by dividing" in that paragraph is deemed to be replaced with "the proportion obtained by multiplying by 120/100 the proportion obtained by dividing".