Maryland Code § CL-11-503

(a) In a wholesale sale of cigarettes, the presumptive wholesale markup of
5 percent provided for in § 11-501(e) of this subtitle may be reduced by 2 cents for
each carton of 200 cigarettes, if:
(1) The cigarettes are not delivered unless their full price is received
by the wholesaler at or before delivery; and
(2) The purchaser performs or pays for the cartage cost of the
cigarettes to the place of business of the purchaser.

(b) (1) In the absence of satisfactory proof of a lesser aggregate cost of
doing business, a vending machine operator or retailer who purchases cigarettes at
prices ordinarily invoiced to a wholesaler and who receives the wholesaler's discounts
on them shall:
(i) First, add to his basic cost of cigarettes the wholesale
markup of 5 percent provided for in § 11-501(e) of this subtitle to cover the cost of
doing business as a wholesaler; and
(ii) Then, on the resultant sum, add the retail markup of 8
percent provided for in § 11-501(d) of this subtitle.
(2) If the discount received by the vending machine operator or
retailer is less than that ordinarily allowed to wholesalers, the wholesale markup of
5 percent may be reduced by the difference between the discount ordinarily allowed
to wholesalers and the discount received by the retailer or vending machine operator.
(c) (1) A wholesaler who sells cigarettes to another wholesaler or to a
vending machine operator is not required to include in his selling price the cost to the
wholesaler. However, in the absence of satisfactory proof of a lesser cost for the
service rendered, the wholesaler shall include in the selling price his basic cost of
cigarettes, plus a charge of 1 percent of his basic cost of cigarettes.
(2) If a wholesaler purchases cigarettes from another wholesaler,
then, on resale of the cigarettes to a retailer, he is the wholesaler for the purposes of
this subtitle.

‹ Prev All Maryland sections Next ›

Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.