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138.195 License required for various dealers -- Fees -- Revocation of licenses
-- Appeals -- Records -- Reports -- Administrative regulations -- Tax
returns. (Effective August 1, 2013)
(1)
(2)
(3)
(4)
(5)
(6)
(a)
No person other than a manufacturer shall acquire cigarettes in this state
on which the Kentucky cigarette tax has not been paid, nor act as a
resident wholesaler, nonresident wholesaler, vending machine operator,
sub-jobber, transporter or unclassified acquirer of such cigarettes without
first obtaining a license from the department as set out in this section.
(b) No person shall act as a distributor of tobacco products without first
obtaining a license from the department as set out in this section.
Each resident wholesaler shall secure a separate license for each place of
business at which cigarette tax evidence is affixed or at which cigarettes on
which the Kentucky cigarette tax has not been paid are received. Each
nonresident wholesaler shall secure a separate license for each place of
business at which evidence of Kentucky cigarette tax is affixed or from where
Kentucky cigarette tax is reported and paid. Such a license or licenses shall be
secured on or before July 1 of each year, and each licensee shall pay the sum
of five hundred dollars ($500) for each such year or portion thereof for which
such license is secured.
Each sub-jobber shall secure a separate license for each place of business
from which Kentucky tax-paid cigarettes are made available to retailers,
whether such place of business is located within or without this state. Such
license or licenses shall be secured on or before July 1 of each year, and each
licensee shall pay the sum of five hundred dollars ($500) for each such year or
portion thereof for which such license is secured.
Each vending machine operator shall secure a license for the privilege of
dispensing Kentucky tax-paid cigarettes by vending machines. Such license
shall be secured on or before July 1 of each year, and each licensee shall pay
the sum of twenty-five dollars ($25) for each year or portion thereof for which
such license is secured. No vending machine shall be operated within this
Commonwealth without having prominently affixed thereto the name of its
operator, together with the license number assigned to such operator by the
department. The department shall prescribe by regulation the manner in which
the information shall be affixed to the vending machine.
Each transporter shall secure a license for the privilege of transporting
cigarettes within this state. Such license shall be secured on or before July 1 of
each year, and each licensee shall pay the sum of fifty dollars ($50) for each
such year or portion thereof for which such license is secured. No transporter
shall transport any cigarettes without having in actual possession an invoice or
bill of lading therefor, showing the name and address of the consignor and
consignee, the date acquired by the transporter, the name and address of the
transporter, the quantity of cigarettes being transported, together with the
license number assigned to such transporter by the department.
Each unclassified acquirer shall secure a license for the privilege of acquiring
cigarettes on which the Kentucky cigarette tax has not been paid. Such license
shall be secured on or before July 1 of each year, and each licensee shall pay
the sum of fifty dollars ($50) for each such year or portion thereof for which
(7)
(8)
(9)
such license is secured.
(a) 1.
Each distributor shall secure a license for the privilege of selling
tobacco products in this state. Each license shall be secured on or
before July 1 of each year, and each licensee shall pay the sum of
five hundred dollars ($500) for each year or portion thereof for which
the license is secured.
2. a.
A resident wholesaler, nonresident wholesaler, or subjobber
licensed under this section may also obtain and maintain a
distributor's license at each place of business at no additional
cost each year.
b.
An unclassified acquirer licensed under this section may also
obtain and maintain a distributor's license for the privilege of
selling tobacco products in this state. The license shall be
secured on or before July 1 of each year, and each licensee
shall pay the sum of four hundred fifty dollars ($450) for each
year or portion thereof for which the license is secured.
3.
The department may, upon application, grant a distributor's license
to a person other than a retailer and who is not otherwise required to
hold a distributor's license under this paragraph. If the department
grants the license, the licensee shall pay the sum of five hundred
dollars ($500) for each year or portion thereof for which the license
is secured, and the licensee shall be subject to the excise tax in the
same manner and subject to the same requirements as a distributor
required to be licensed under this paragraph.
(b) The department may, upon application, grant a retail distributor's license
to a retailer for the privilege of purchasing tobacco products from a
distributor not licensed by the department. If the department grants the
license, the licensee shall pay the sum of one hundred dollars ($100) for
each year or portion thereof for which the license is secured.
Nothing in KRS 138.130 to 138.205 shall be construed to prevent the
department from requiring a person to purchase more than one (1) license if
the nature of such person's business is so diversified as to justify such
requirement.
(a) The department may by regulation require any person licensed under the
provisions of this section to supply such information concerning his
business, sales or any privilege exercised, as is deemed reasonably
necessary for the regulation of such licensees, and to protect the
revenues of the state.
(b) Failure on the part of such licensee to comply with the provisions of KRS
138.130 to 138.205 or any regulations promulgated thereunder, or to
permit an inspection of premises, machines or vehicles by an authorized
agent of the department at any reasonable time shall be grounds for the
revocation of any license issued by the department, after due notice and a
hearing by the department.
(c) The commissioner of the department may assign a time and place for
such hearing and may appoint a conferee who shall conduct a hearing,
receive evidence and hear arguments.
(d)
(10)
(11)
(12)
(13)
(14)
The conferee shall thereupon file a report with the commissioner together
with a recommendation as to the revocation of such license.
(e) From any revocation made by the commissioner of the department on
such report, the licensee may prosecute an appeal to the Kentucky Board
of Tax Appeals as provided by law.
(f) Any person whose license has been revoked for the willful violation of any
provision of KRS 138.130 to 138.205 shall not be entitled to any license
provided for in this section, or have any interest in any such license, either
disclosed or undisclosed, either as an individual, partnership, corporation
or otherwise, for a period of one (1) year after such revocation.
No license issued pursuant to the provisions of this section shall be
transferable or negotiable except that a license may be transferred between an
individual and a corporation, if that individual is the exclusive owner of that
corporation, or between a subsidiary corporation and its parent corporation.
Every manufacturer located or doing business in this state and the first person
to import cigarettes from a foreign manufacturer shall keep written records of all
shipments of cigarettes to persons within this state, and shall submit to the
department monthly reports of such shipments. All books, records, invoices,
and documents required by this section shall be preserved in a form prescribed
by the department for not less than four (4) years from the making of the
records unless the department authorizes, in writing, the destruction of the
records.
No person licensed under this section except nonresident wholesalers shall
either sell to or purchase from any other such licensee untax-paid cigarettes.
(a) Licensed distributors of tobacco products shall pay and report the tax
levied by KRS 138.140(4)(a) on or before the twentieth day of the
calendar month following the month in which the possession or title of the
tobacco products are transferred from the licensed distributor to retailers
or consumers in this state, as the case may be.
(b) Retailers who have applied for and been granted a retail distributor's
license for the privilege of purchasing tobacco products from a person
who is not a distributor licensed under KRS 138.195(7)(a) shall report and
pay the tax levied by KRS 138.140(4)(c)2. on or before the twentieth day
of the calendar month following the month in which the products are
acquired by the licensed retail distributors.
(c) If the distributor or retail distributor timely reports and pays the tax due,
the distributor or retail distributor may deduct an amount equal to one
percent (1%) of the tax due.
(d) The department shall promulgate administrative regulations setting forth
the details of the reporting requirements.
A tax return shall be filed for each reporting period whether or not tax is due.
Effective:August 1, 2013
History: Amended 2013 Ky. Acts ch. 97, sec. 3, effective August 1, 2013. -Repealed and reenacted 2009 Ky. Acts ch. 86, sec. 2, effective March 24, 2009.
-- Amended 2008 Ky. Acts ch. 132, sec. 2, effective April 24, 2008. -- Amended
2005 Ky. Acts ch. 85, sec. 350, effective June 20, 2005; and ch. 168, sec. 85,
effective June 1, 2005. -- Amended 1988 Ky. Acts ch. 40, sec. 1, effective July
15, 1988. -- Amended 1982 Ky. Acts ch. 386, sec. 4, effective July 15, 1982. -Amended 1964 Ky. Acts ch. 141, sec. 26. -- Created 1962 Ky. Acts ch. 92,
sec. 4.
Legislative Research Commission Note (3/24/2009). 2009 Ky. Acts ch. 86,
sec. 17, provides that "The intent of the General Assembly in repealing and
reenacting KRS 136.392, 138.195, 141.160, 160.6156, 160.6157, 160.6158,
131.183, 141.044, 141.235, 134.580, 393.060, and 157.621 in Sections 1 to 12
of this Act is to affirm the amendments made to these sections in 2008 Ky. Acts
ch. 132. The provisions in Sections 1 to 12 of this Act shall apply retroactively to
April 24, 2008."
Legislative Research Commission Note (3/24/2009). 2009 Ky. Acts ch. 86,
sec. 18, provides "To the extent that any provision included in this Act is
considered new language, the provisions of KRS 446.145 requiring such new
language to be underlined are notwithstood."
Legislative Research Commission Note (6/1/2005). 2005 Ky. Acts chs. 11, 85,
95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory
references to agencies and officers whose names have been changed in 2005
legislation confirming the reorganization of the executive branch. Such a
correction has been made in this section.
Legislative Research Commission Note (6/20/2005). 2005 Ky. Acts ch. 168,
sec. 85, contained a reference in the newly created subsection (12) of this
section to "subsections (3) and (4) of Section 81 of this Act" (KRS 138.140). In
merging the provisions of 2005 Ky. Acts chs. 168 and 173 in codification,
subsections (3) and (4) became subsections (4) and (5).
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