Download as PDF
138.195 License required for various dealers -- Fees -- Revocation of licenses -Appeals -- Records -- Reports -- Administrative regulations -- Tax returns -Grounds for denial of license.
(1)
(2)
(3)
(4)
(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.
(c) For licenses effective for periods beginning on or after July 1, 2015, no
individual, entity, or any other group or combination acting as a unit may be
eligible to obtain a license under this section if the individual, or any partner,
director, principal officer, or manager of the entity or any other group or
combination acting as a unit has been convicted of or entered a plea of guilty
or nolo contendere to:
1.
A crime relating to the reporting, distribution, sale, or taxation of
cigarettes or tobacco products; or
2.
A crime involving fraud, falsification of records, improper business
transactions or reporting;
for ten (10) years from the expiration of probation or final discharge from
parole or maximum expiration of sentence.
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
(5)
(6)
(7)
(8)
by administrative 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 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
(9)
(10)
(11)
(12)
(13)
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 administrative regulation require any person
requesting a license or holding a license under 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 the applicant or licensee to comply with KRS 131.600 to
131.630, 138.130 to 138.205, 248.752, or 248.754 or any administrative
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 denial or revocation of any license
issued by the department, after due notice and a hearing by the department.
(c) The commissioner may assign a time and place for the hearing and may
appoint a conferee who shall conduct a hearing, receive evidence, and hear
arguments.
(d) The conferee shall thereupon file a report with the commissioner together with
a recommendation as to the denial or revocation of the license.
(e) From any denial or revocation made by the commissioner on the 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 131.600 to 131.630, 138.130 to 138.205, 248.752, or
248.754 or any administrative regulations promulgated thereunder shall not be
entitled to any license provided for in this section, or have any interest in any
license, either disclosed or undisclosed, either as an individual, partnership,
corporation or otherwise, for a period of two (2) years after the revocation.
No license issued pursuant to 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 into this state 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.
(14) A tax return shall be filed for each reporting period whether or not tax is due.
(15) Any license issued by the department under this section shall not be construed to
waive or condone any violation that occurred or may have occurred prior to the
issuance of the license and shall not prevent subsequent proceedings against the
licensee.
(16) (a) The department may deny the issuance of a license under this section if:
1.
The applicant has made any material false statement on the application
for the license; or
2.
The applicant has violated any provision of KRS 131.600 to 131.630,
138.130 to 138.205, 248.754, or 248.756 or any administrative
regulations promulgated thereunder.
(b) If the department denies the applicant a license under this section, the
department shall notify the applicant of the grounds for the denial, and the
applicant may request a hearing and appeal the denial as provided in
subsection (9) of this section.
Effective: July 1, 2015
History: Amended 2015 Ky. Acts ch. 55, sec. 16, effective July 1, 2015. -- 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).
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.