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HB-5472, As Passed House, June 10, 2026
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HOUSE BILL NO. 5472
A bill to amend 1993 PA 327, entitled
"Tobacco products tax act,"
by amending section 6 (MCL 205.426), as amended by 2022 PA 171.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) A manufacturer, wholesaler, secondary wholesaler, 1
vending machine operator, transportation company, unclassified 2
acquirer, or retailer shall keep a complete and accurate record of 3
each tobacco product manufactured, purchased, or otherwise 4
acquired. Except for a manufacturer, the records must include a 5
written statement containing the name and address of both the 6
January 22, 2026, Introduced by Rep. Aragona and referred to Committee on Regulatory Reform.
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seller and the purchaser, the date of delivery, the quantity, the 1
trade name or brand, and the price paid for each tobacco product 2
purchased or otherwise acquired. Except as otherwise provided in 3
this section, a licensee shall keep as part of the records a true 4
copy of all purchase orders, invoices, bills of lading, and other 5
written matter substantiating the purchase or acquisition of each 6
tobacco product at the location where the tobacco product is stored 7
or offered for sale. For an unclassified acquirer that does not 8
maintain a place of business where tobacco products are sold, 9
brought, or kept, the records required by this section must be kept 10
at the physical address licensed under section 3. A retailer shall 11
keep as part of the records a true copy of all purchase orders, 12
invoices, bills of lading, and other written matter substantiating 13
the purchase or acquisition of each tobacco product and related to 14
any tobacco products subject to subsection (15), if applicable, at 15
the location where the tobacco product is offered for sale for a 16
period of 4 months from the date of purchase or acquisition. The 17
department may, by giving prior written approval, authorize a 18
person licensed under this act or a retailer to maintain records in 19
a manner other than that required by this subsection. Other records 20
shall must be kept by these persons as the department reasonably 21
prescribes. 22
(2) A manufacturer, wholesaler, unclassified acquirer, and 23
secondary wholesaler shall deliver with each sale or consignment of 24
a tobacco product a written statement containing the name or trade 25
name and address of both the seller and the purchaser, the date of 26
delivery, the quantity, and the trade name or brand of the tobacco 27
product, correctly itemizing the prices paid for each brand 28
purchased, and shall retain a duplicate of each statement. 29
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(3) A vending machine operator shall keep a detailed record of 1
each vending machine owned for the sale of tobacco products showing 2
the location of the machine, the date of placing the machine on the 3
location, the quantity of each tobacco product placed in the 4
machine, the date when placed there, and the amount of the 5
commission paid or earned on sales through the vending machine. 6
When filling or refilling the vending machine, the operator shall 7
deliver to the owner or tenant occupying the premises where the 8
machine is located a written statement containing the operator's 9
own name and address, the name and address of the owner or the 10
tenant, the date when the machine was filled, and the quantity of 11
each brand of tobacco product sold from the machine since the date 12
when tobacco products were last placed in the machine. A person in 13
possession of premises where a vending machine is located shall 14
keep a record of each tobacco product sold through the vending 15
machine located on the premises and the amount of commission paid 16
by the person operating the vending machine. The records must 17
consist of written statements required to be given by each person 18
operating a vending machine for the sale of tobacco products as 19
provided in this section. 20
(4) A licensee under this act shall not issue or accept a 21
written statement or invoice that is known to the licensee to 22
contain a statement or omission that falsely indicates the name of 23
the customer, the type, trade name, or brand of merchandise, the 24
quantity of each type, trade name, or brand of merchandise, the 25
prices, the discounts, the date of the transaction, or the terms of 26
sale. A person shall not use a device or game of chance to aid, 27
promote, or induce sales or purchases of a tobacco product, or give 28
a tobacco product in connection with a device or game of chance. 29
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(5) Except as otherwise provided in subsection (6), all 1
statements and other records required by this section must be in a 2
form prescribed by the department and must be preserved for a 3
period of 4 years from the date of purchase or acquisition of the 4
tobacco product and offered for inspection at any time upon oral or 5
written demand by the department or its authorized agent by every 6
wholesaler, secondary wholesaler, vending machine operator, 7
unclassified acquirer, and retailer. 8
(6) A licensee or retailer in possession or control of a 9
tobacco product that has not preserved the statements and records 10
required by this section because the licensee or retailer claims 11
the tobacco product was purchased or acquired more than 4 years ago 12
has the burden of proving that the tobacco product was purchased or 13
acquired more than 4 years ago. A licensee or retailer that fails 14
to preserve documentation sufficient to meet this burden of proof 15
is in violation of the record-keeping requirements under this 16
section for that tobacco product. 17
(7) A shipping case or container of a tobacco product other 18
than cigarettes received or acquired within this state by a 19
wholesaler or unclassified acquirer from a manufacturer or any 20
person located outside this state must bear either the name and 21
address of the wholesaler or unclassified acquirer that made the 22
first purchase of that shipping case or container or any other 23
markings the department prescribes. The point at which a shipping 24
case or container is considered to be received or acquired in this 25
state is to must be determined based on the facts and circumstances 26
including, but not limited to, all of the following: 27
(a) Ownership of the shipping case or container when it enters 28
this state's borders or when it is delivered to the wholesaler or 29
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unclassified acquirer. 1
(b) The risk of loss. 2
(c) The use of a common carrier or a vehicle owned or leased 3
by the wholesaler or unclassified acquirer to import or transport 4
the shipping case or container into this state or deliver the 5
shipping case or container to the wholesaler or unclassified 6
acquirer. 7
(8) A wholesaler or unclassified acquirer, licensed under this 8
act, shall place or otherwise affix the markings prescribed by the 9
department on every shipping case or container of a tobacco product 10
other than cigarettes that is sold, transferred, shipped, or 11
delivered by the wholesaler or unclassified acquirer to a retailer 12
or another licensee, in this state. 13
(9) If a marking prescribed by the department is to be affixed 14
to a shipping case or container of tobacco products other than 15
cigarettes by means of a mechanical or other device that applies 16
the marking, the wholesaler or unclassified acquirer must obtain 17
prior approval from the department to purchase, possess, or 18
otherwise be permitted to use such a device. A wholesaler or 19
unclassified acquirer whose license is revoked, is terminated, or 20
has expired shall return all such devices in its possession to the 21
department within 60 days of the revocation, termination, or 22
expiration of its license. In addition to any other fine or any 23
civil or criminal penalty or charge allowed by law, a wholesaler or 24
unclassified acquirer that fails to return each device in its 25
possession as required by this subsection is liable for a fine of 26
$500.00 for each device not timely returned. 27
(10) The markings required by this section on shipping cases 28
and containers of tobacco products other than cigarettes must not 29
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be affixed in a manner that makes the markings illegible or that 1
covers up, in whole or in part, or that otherwise obstructs or 2
makes illegible the information or markings described in subsection 3
(7). 4
(11) If a tobacco product other than cigarettes is found in a 5
place of business or otherwise in the possession of a wholesaler, 6
secondary wholesaler, vending machine operator, unclassified 7
acquirer, transporter, or retailer without the markings prescribed 8
by the department or the information required by this section on 9
the shipping case or container of the tobacco product, if required 10
by this section, or if an individual package of cigarettes is found 11
without a stamp affixed as provided under this act or if a tobacco 12
product is found, or was acquired, imported, transferred, or sold, 13
without proper substantiation by invoices or other records as 14
required by this section, the presumption shall be is that the 15
tobacco product is kept in violation of this act and constitutes 16
contraband subject to seizure and forfeiture under section 9. 17
Notwithstanding anything in this act to the contrary, if any 18
tobacco product is adjudicated by a court of competent jurisdiction 19
to have been lawfully seized under this act, and if the 20
adjudication of lawful seizure survives the exhaustion or lapse of 21
any appeal rights, the tobacco product shall be is automatically 22
forfeited to this state and the person from whom that tobacco 23
product was seized shall be is liable for the tax imposed under 24
this act on that tobacco product. 25
(12) If a tobacco product is to be or is being transported on 26
a public highway, road, or street in this state for shipment 27
outside this state, as indicated by the bills of lading, invoices, 28
packing slips, or other documentation related to that shipment, the 29
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licensee shipping the tobacco product shall cause to be placed on 1
every shipping case or container, or the largest unit of packaging, 2
including, but not limited to, a shrink-wrapped pallet, in which 3
the tobacco product is shipped the name and address of the 4
consignee or purchaser to whom the shipment is made outside of the 5
state and, for tobacco products other than cigarettes, the marking 6
prescribed by the department unless the shipping case or other 7
container already bears that marking from the licensee. A tobacco 8
product that was located in this state is considered to have been 9
shipped outside this state for purposes of this subsection if the 10
tobacco product crosses the border of this state regardless of 11
whether the tobacco product is delivered to or accepted by the 12
consignee or purchaser to whom the shipment is made outside this 13
state. 14
(13) The department may require reports from a common carrier 15
who transports a tobacco product to a point within this state from 16
another person who, under contract, transports a tobacco product, 17
or from a bonded warehouseperson or bailee who has in his or her 18
that person's possession a tobacco product. A carrier, bailee, 19
warehouseperson, or other person shall permit the inspection of the 20
tobacco products and examination by the department or its duly 21
authorized agent of any records relating to the shipment of a 22
tobacco product into, from, or within this state. 23
(14) Except as otherwise provided in subsection (15), any 24
person transporting, possessing, or acquiring for the purpose of 25
transporting a tobacco product upon on a public highway, road, or 26
street of this state shall must be licensed under this act as a 27
transporter, unless that person is licensed under this act as an 28
unclassified acquirer, wholesaler, transportation company, vending 29
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machine operator, or secondary wholesaler, and shall have in the 1
person's actual possession invoices or bills of lading containing 2
the name and address of both the seller and the purchaser, the 3
actual or estimated date of delivery, the person's name and 4
address, the quantity and trade name or brand of each tobacco 5
product, the price paid for each trade name or brand in the 6
person's possession or custody, and a copy of the license as 7
prescribed under this act. 8
(15) Notwithstanding anything in this act to the contrary, a 9
retailer in this state, or other person acting on behalf of a 10
retailer in this state, is not required to be licensed under this 11
act to transport a tobacco product upon on a public highway, road, 12
or street of this state for the purpose of delivering a tobacco 13
product to a consumer in this state if all of the following 14
conditions are met: 15
(a) The tobacco product was purchased by the consumer from the 16
retailer at retail. 17
(b) The consumer has paid for the tobacco product in full 18
before the shipment and delivery of the tobacco product to the 19
consumer. 20
(c) The retailer or other person making the delivery has in 21
its possession, at all times during which the tobacco product is 22
being transported on a public highway, road, or street of this 23
state, an invoice, receipt, or other documentation substantiating 24
the sale to the consumer that states the name and address of the 25
retailer, the name and address of the consumer, the delivery date, 26
the trade name or brand of the tobacco product, the quantity, and 27
the price paid for the tobacco product. 28