(a) Date. The dealer must take an inventory to establish the quantities of articles subject to the floor stocks tax held for sale on April 1, 2009. The dealer must take the physical inventory or record (book) inventory not earlier than March 26, 2009 and not later than April 10, 2009.
(b) Reconciliation. If the dealer takes a physical inventory on any day other than April 1, 2009, the resulting records must be reconciled to reflect the actual quantity of articles held at 12:01 a.m. on April 1, 2009. These records must include all supporting records of receipt and disposition.
(c) Method. The dealer may take a physical inventory in accordance with Sec. 46.202 or a record (book) inventory in accordance with Sec. 46.203. The following table lists the taxable articles and the method to use for each to determine quantities: ------------------------------------------------------------------------
Article Inventory method------------------------------------------------------------------------Small cigarettes....................... Count the number of cigarettes.Large cigarettes 6\1/2\[sec] or less in Count the number of large
length. cigarettes.Large cigarettes more than 6\1/2\[sec] Keep a separate count for each
in length. size of large cigarette. Count
each 2\3/4\[sec], or fraction
thereof, as one small
cigarette.Small Cigars........................... Count the number of small
cigars.Snuff.................................. Count the number of packages at
each weight, noting the weight
in pounds and ounces. Convert
the ounces to pounds.Chewing tobacco........................ Count the number of packages at
each weight, noting the weight
in pounds and ounces. Convert
the ounces to pounds.Pipe tobacco........................... Count the number of packages at
each weight, noting the weight
in pounds and ounces. Convert
the ounces to pounds.Roll-your-own tobacco.................. Count the number of packages at
each weight, noting the weight
in pounds and ounces. Convert
the ounces to pounds.Cigarette papers 6\1/2\[sec] or less in Count the number of cigarette
length. papers, divide by 50, and
round up if there is any
remainder.Cigarette papers more than 6\1/2\[sec] Count the number for each size
in length. of cigarette paper. Count each
2\3/4\[sec], or fraction
thereof, as new cigarette
paper. Divide adjusted total
by 50 and round up if there is
any remainder.Cigarette tubes 6\1/2\[sec] or less in Count the number of cigarette
length. tubes, divide by 50, and round
up if there is any remainder.Cigarette tubes more than 6\1/2\[sec] Count the number for each size
in length. of cigarette tube. Count each
2\3/4\[sec], or fraction
thereof, as one cigarette
tube. Divide adjusted total by
50 and round up if there is
any remainder.------------------------------------------------------------------------