Download as PDF
138.132Contraband tobacco products -- Property used in substantial
connection with knowing violation of KRS 138.130 to 138.205 -- Seizure -Sale -- Remission of forfeiture -- Appeal. (Effective January 1, 2014)
(1)
(2)
(3)
(4)
(5)
It is the declared legislative intent of KRS 138.130 to 138.205 that any
untax-paid tobacco products held, owned, possessed, or in control of any
person other than as provided in KRS 138.130 to 138.205 are contraband and
subject to seizure and forfeiture as set out in this section.
(a) If a retailer, who is not a licensed retail distributor, purchases tobacco
products from a licensed distributor and the purchase invoice does not
contain the separate identification and display of the excise tax required
by KRS 138.140(4)(d)3., the retailer shall, within twenty-four (24) hours,
notify the department in writing.
(b) The notification shall include the name and address of the person from
whom the tobacco products were purchased and a copy of the purchase
invoice.
(c) The tobacco products for which the required information was not included
on the invoice shall be retained by the retailer, and not sold, for a period
of fifteen (15) days after giving the proper notice as required by this
subsection.
(d) After the fifteen (15) day period, the retailer may pay the tax due on the
tobacco products described in paragraph (c) of this subsection according
to administrative regulations promulgated by the department, and after
which may proceed to sell the tobacco products.
If a retailer, who is not a licensed retail distributor, purchases tobacco products
for resale from a person not licensed under KRS 138.195(7), which is
prohibited by KRS 138.140(4)(c), the retailer may not sell those tobacco
products until the retailer applies for and is granted a retail distributor's license
under KRS 138.195(7)(b).
If, upon examination, the department determines that the retailer has failed to
comply with the provisions of subsection (3) of this section, the retailer shall
pay all tax and interest and applicable penalties due and the following shall
apply:
(a) For the first offense, an additional penalty shall be assessed equal to ten
percent (10%) of the tax due;
(b) For a second offense within three (3) years or less of the first offense, an
additional penalty shall be assessed equal to twenty-five percent (25%) of
the tax due; and
(c) For a third offense or subsequent offense within three (3) years or less of
the first offense, the tobacco products shall be contraband and subject to
seizure and forfeiture as provided in subsection (5) of this section.
(a) Whenever a representative of the department finds contraband tobacco
products within the borders of this state, the tobacco products shall be
immediately seized and stored in a depository to be determined by the
representative.
(b) At the time of seizure, the representative shall deliver to the person in
whose custody the tobacco products are found a receipt for the seized
(6)
(7)
(8)
products. The receipt shall state on its face that any inquiry concerning
any tobacco products seized shall be directed to the commissioner of the
Department of Revenue, Frankfort, Kentucky.
(c) Immediately upon seizure, the representative shall notify the
commissioner of the nature and quantity of the tobacco products seized.
Any seized tobacco products shall be held for a period of twenty (20)
days, and if after that period no person has claimed the tobacco products
as his or her property, the commissioner shall cause the tobacco products
to be destroyed.
All fixtures, equipment, materials, and personal property used in substantial
connection with the sale or possession of tobacco products involved in a
knowing and intentional violation of KRS 138.130 to 138.205 shall be
contraband and subject to seizure and forfeiture as follows:
(a) The department's representative shall seize the property and store the
property in a safe place selected by the representative; and
(b) The representative shall proceed as provided in KRS 138.165(2). The
commissioner shall cause the property to be sold after notice published
pursuant to KRS Chapter 424. The proceeds from the sale shall be
applied as provided in KRS 138.165(2).
The owner or any person having an interest in the fixtures, materials, or
personal property that has been seized as provided by subsection (6) of this
section may apply to the commissioner for remission of the forfeiture for good
cause shown. If it is shown to the satisfaction of the commissioner that the
owner or person having an interest in the property was without fault, the
department shall remit the forfeiture.
Any party aggrieved by an order entered under this section may appeal to the
Kentucky Board of Tax Appeals in the manner provided by law.
Effective:January 1, 2014
History: Created 2013 Ky. Acts ch. 97, sec. 5, effective January 1, 2014.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
