72 Pa. Stat. § 202-A
As used in this article--
"Basic Cost of Cigarettes" shall mean the manufacturer's list price to which shall be added the full face value of any tax which may be required by law, if not already included in the manufacturer's list price. Manufacturer's list price shall mean the gross price of the cigarettes from the manufacturer to the dealer in the quantities stated and shall include any Federal tax, freight or handling charges, if not already included.
"Board" shall mean the Board of Appeals in the Department of Revenue.
"Cigarettes" shall mean and include any roll for smoking made wholly or in part of tobacco, irrespective of size or shape, and whether or not such 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, and shall not include cigars. For purposes of licensing under this article only, the term shall include little cigars.
"Cigarette Stamping Agent" shall mean any person who is licensed as such by the Department of Revenue for the purpose of affixing cigarette tax stamps to packages of cigarettes and transmitting the proper tax to the Commonwealth.
"Cigarette Tax Act" shall mean Article XII of the act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971."
"Cigarette Vending Machine" shall mean any mechanical or electrical device from which cigarettes are dispensed for a consideration.
"Cost of Doing Business" shall mean that amount, as evidenced by the standards and methods of accounting regularly employed in the determination of costs for the purpose of Federal income tax reporting, for the total operation of the establishment for the previous twelve-month period and must include, but shall not be limited to, all direct and indirect costs such as product cost, freight charges, labor costs, cost of equipment, rental and maintenance expenses, cigarette licenses, preopening expenses, management fees, costs, rents, depreciation, selling costs, maintenance expenses, interest expenses, delivery costs, all types of licenses, all types of taxes, insurance, advertising and any central and regional administrative expenses.
"Cost of the Retailer" shall mean the basic cost of cigarettes to the retailer plus the cost of doing business by the retailer in excess of the basic cost of cigarettes, expressed as a percentage and applied to the basic cost of cigarettes. In the absence of filing of satisfactory proof of a lesser or higher cost of doing business by the retailer making the sale, the cost of doing business by the retailer shall be presumed to be Seven per centum of the basic cost of cigarettes to the retailer. When a retailer establishes a lesser cost of doing business than the presumptive Seven per centum cost of doing business, such lesser cost of doing business may be used to compute the cost of the retailer for a period of time no greater than twelve months, at the end of which time the cost to the retailer shall be computed using the presumptive Seven per centum cost of doing business, unless the retailer again establishes a lesser cost of doing business. Any fractional part of a cent in such cost per carton shall be rounded off to the next higher cent. In the case of any person who purchases cigarettes for sale at retail from any manufacturer of cigarettes without resort to a wholesaler as such, such person shall be deemed, for the purposes of this article, to be engaged in the sale of cigarettes as a stamping agent, wholesaler and retailer and as such shall be subject to all mark-up provisions of this article in the order named.
"Cost of the Stamping Agent" shall mean the basic cost of cigarettes plus the cost of doing business by the cigarette stamping agent in excess of the basic cost of cigarettes, expressed as a percentage and applied to the basic cost of cigarettes. Any fractional part of a cent in the cost per carton of cigarettes shall be rounded off to the next higher cent. In the case of sales at retail by cigarette stamping agents, the cost of the cigarette stamping agent shall be the same as the cost of the retailer. There shall be determined a separate cost of the cigarette stamping agent for sales to wholesale dealers and for sales to retail dealers. In the absence of filing of satisfactory proof of a lesser cost of doing business of the cigarette stamping agent making the sale, the cost of doing business shall be presumed to be one and seven-tenths per centum of the basic cost of cigarettes to the stamper for sales to wholesale dealers and, with respect to sales to retail dealers, the cost of the stamping agent plus the cost of the wholesaler. When a cigarette stamping agent establishes a lesser cost of doing business than the presumptive costs contained herein, such lesser cost of doing business may be used to compute the cost of the cigarette stamping agent for a period of time no greater than twelve months, at the end of which time the cost of the cigarette stamping agent shall be computed using the presumptive costs contained herein, unless the cigarette stamping agent again establishes a lesser cost of doing business.
"Cost of the Wholesaler" shall mean the basic cost of cigarettes to the wholesaler plus the cost of doing business by the wholesaler in excess of the basic cost of cigarettes, expressed as a percentage and applied to the basic cost of cigarettes. Any fractional part of a cent in the cost to the wholesaler per carton of cigarettes shall be rounded off to the next higher cent. There shall be determined a separate cost of the wholesaler for sale to retail dealers. In the absence of filing satisfactory proof of a lesser cost of doing business by the wholesaler with respect to sales to retail dealers, the cost of doing business shall be presumed to be four per centum of the basic cost of cigarettes. When a wholesaler establishes a lesser cost of doing business than the presumptive cost of doing business, such lesser cost of doing business may be used to compute the cost of the wholesaler for a period of time no greater than twelve months, at the end of which time the cost of the wholesaler shall be computed using the presumptive four per centum cost of doing business, unless the wholesaler again establishes a lesser cost of doing business.
"Dealer" shall mean any cigarette stamping agency, wholesaler or retailer as these terms are more specifically defined herein. When used in this article, the term shall include all of the above-mentioned categories. Nothing contained in this article shall preclude any person from being a cigarette stamping agency, wholesaler or retailer: Provided, That such person meets the requirements for each category of dealer and that, where a person holds more than one license, the presumptive minimum price shall include all presumptive costs of doing business if the product is sold at retail.
"Department" shall mean the Department of Revenue of the Commonwealth.
"Franchisee" shall mean any person engaged in the sale of cigarettes who is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing plan or system prescribed in substantial part by the grantor of that right, for which a direct or indirect fee is paid, and whose franchisor franchises five or more retail outlets in this Commonwealth through which cigarettes are sold.
"Little cigars" shall mean any roll for smoking that weighs not more than four pounds per thousand, where the wrapper or cover is made of natural leaf tobacco or of any substance containing tobacco.
"Person" shall mean any individual, unincorporated association, company, corporation, joint stock company, group, agency, syndicate, trust or trustee, receiver, fiduciary, partnership, conservator and any political subdivision of the Commonwealth or any other state. As applied to a partnership, unincorporated association or other joint venture, the term shall also mean the partners or members thereof and, as applied to a corporation, shall also mean all the officers and directors thereof.
"Retailer" shall mean:
"Sale" and "Sell" shall mean any 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.
"Secretary" shall mean the Secretary of Revenue of the Commonwealth.
"Vending Machine Operator" shall mean any person who places or services one or more cigarette vending machines whether owned, leased or otherwise operated by him at locations from which cigarettes are sold to the ultimate consumer. The owner or tenant of the premises upon which a vending machine is placed shall not be considered a vending machine operator if his sole remuneration therefrom is a flat rental fee or commission based upon the number or value of cigarettes sold from the machine, unless the owner or tenant actually owns the vending machine or leases the vending machine under an agreement whereby the profits from the sale of the cigarettes directly inure to his benefit.
"Wholesaler" shall mean and include:
72 P.S. § 202-A