61 Pa. Code § 71.4
The following words and terms, when used in this article, have the following meanings, unless the context clearly indicates otherwise:
Act-The Cigarette Tax Act, Article XII of the TRC (72 P. S. §§ 8201-8297).
Basic cost of cigarettes-The gross price of cigarettes from the manufacturer to a dealer in the quantities stated including freight and handling charges and the full face value of any tax which may be required by law.
Cigarette stamping agent-A person who is licensed as such by the Department for the purpose of affixing cigarette tax stamps to packages of cigarettes and transmitting the proper tax to the Commonwealth.
Cigarettes-Any roll for smoking made wholly or in part of tobacco, irrespective of size or shape, and whether or not the tobacco is flavored, adulterated or mixed with any other ingredient, the wrapper or cover of which is made of paper or any other substance or material, excepting tobacco. The term does not include cigars.
Cigarette vending machine-A mechanical or electrical device from which cigarettes are dispensed for a consideration.
Code-The Cigarette Sales and Licensing Act, Article II-A of the FC (72 P. S. §§ 201-A-230-A).
Cost of doing business-The dealer's aggregate costs for its previous 12-month reporting period, as determined by accounting principles regularly employed in the determination of costs for the purpose of Federal income tax reporting, including direct and indirect costs, such as product costs, freight charges, labor costs, costs of equipment, rental and maintenance expenses,cigarette licenses, preopening expenses, management fees, rents, depreciation, selling costs, maintenance expenses, interest expenses, delivery costs, all types of license fees, all types of taxes, insurance, advertising costs and any central and regional administrative expenses.
Cost of the retailer-The basic cost of cigarettes to a retailer, which includes the cost of the wholesaler and cigarette stamping agent, plus a markup to cover the retailer's cost of doing business, which cost of doing business, in the absence of satisfactory proof of a lesser cost, is presumed to be 6% of the basic cost of cigarettes to the retailer.
Cost of the stamping agent-The basic cost of cigarettes to a cigarette stamping agent.
Cost of the wholesaler-The basic cost of cigarettes to a wholesaler, which includes the cost of the stamping agent, plus a markup to cover the wholesaler's cost of doing business, which cost of doing business, in the absence of satisfactory proof of a lesser cost, is presumed to be 4% of the basic cost of cigarettes to the wholesaler.
Dealer-A Pennsylvania-licensed cigarette stamping agent, wholesaler or retailer.
Operating expenses-A dealer's cost of doing business decreased by the dealer's cost of goods sold.
Promotional sales plan-The placement upon the premises of a dealer of literature, premiums, displays, goods, wares, merchandise or other material designed to stimulate, encourage or induce the purchase of cigarettes by the consumer, or a marketing plan that involves a price reduction or gift offered in conjunction with the sale of cigarettes that causes a dealer to be in violation of the code or act.
Retailer-
Sale-A transfer for a consideration, in exchange, as barter, as a gift, as an offer for sale or in distribution, in any manner or by any means whatsoever.
Wholesaler-
61 Pa. Code § 71.4
The provisions of this §71.4 issued under section 6 of the Fiscal Code (72 P. S. § 6); section 1291 of the Tax Reform Code of 1971 (72 P. S. § 8291); and sections 209-A, 214-A, 215-A and 227-A of the act of April 9, 1929 (P. L. 343, No. 176) (72 P. S. §§ 209-A, 214-A, 215-A and 227-A).