138.143 Floor stocks tax on cigarettes, snuff, and other tobacco products -- Rates --
Required returns -- Installment payments.
(1) Every retailer, sub-jobber, resident wholesaler, nonresident wholesaler, and unclassified
acquirer shall: <br>(a) Take a physical inventory of all cigarettes in packages bearing Kentucky tax stamps,
and all unaffixed Kentucky cigarette tax stamps possessed by them or in their control <br>at 11:59 p.m. on March 31, 2009. Inventory of cigarettes in vending machines may be <br>accomplished by: <br>1.
Taking an actual physical inventory;
2.
Estimating the cigarettes in vending machines by reporting one-half (1/2) of the <br>normal fill capacity of the machines, as reflected in individual inventory records <br>maintained for vending machines; or
3.
Using a combination of the methods prescribed in subparagraphs 1. and 2. of <br>this paragraph;
(b) File a return with the department on or before April 10, 2009, showing the entire
wholesale and retail inventories of cigarettes in packages bearing Kentucky tax <br>stamps, and all unaffixed Kentucky cigarette tax stamps possessed by them or in their <br>control at 11:59 p.m. on March 31, 2009; and
(c) Pay a floor stock tax at a proportionate rate equal to thirty cents ($0.30) on each
twenty (20) cigarettes in packages bearing a Kentucky tax stamp and unaffixed <br>Kentucky tax stamps in their possession or control at 11:59 p.m. on March 31, 2009.
(2) Every retailer and sub-jobber shall:
(a) 1.
Take a physical inventory of all units of snuff possessed by them or in their <br>control at 11:59 p.m. on March 31, 2009;
2.
File a return with the department on or before April 10, 2009, showing the <br>entire inventory of snuff possessed by them or in their control at 11:59 p.m. on <br>March 31, 2009; and
3.
Pay a floor stock tax at a proportionate rate equal to nine and one-half cents <br>($0.095) on each unit of snuff in their possession or control at 11:59 p.m. on <br>March 31, 2009; and
(b) 1.
a.
Take a physical inventory of all other tobacco products possessed by them <br>or in their control at 11:59 p.m. on March 31, 2009;
b.
File a return with the department on or before April 10, 2009, showing the <br>entire inventories of other tobacco products possessed by them or in their <br>control at 11:59 p.m. on March 31, 2009; and
c.
Pay a floor stock tax at a proportionate rate equal to seven and one-half <br>percent (7.5%) on the purchase price of other tobacco products in their <br>possession or control at 11:59 p.m. on March 31, 2009.
2.
a.
As used in this paragraph, "purchase price" means the actual amount paid <br>for the other tobacco products subject to the tax imposed by this <br>paragraph.
b.
If the retailer or sub-jobber cannot determine the actual amount paid for <br>each item of other tobacco product, the retailer or sub-jobber may use as <br>the purchase price the amount per unit paid as reflected on the most recent <br>invoice received prior to April 1, 2009, for the same category of other <br>tobacco product.
c.
To prevent double taxation, if the invoice used by the retailer or sub-<br>jobber to determine the purchase price of the other tobacco product does <br>not separately state the tax paid by the wholesaler, the retailer or sub-<br>jobber may reduce the amount paid per unit by seven and one-half percent <br>(7.5%).
(3) (a) The taxes imposed by this section may be paid in three (3) installments. The first
installment, in an amount equal to at least one-third (1/3) of the total amount due, <br>shall be remitted with the return provided by the department on or before April 10, <br>2009. The second installment, in an amount that brings the total amount paid to at <br>least two-thirds (2/3) of the total amount due, shall be remitted on or before May 10, <br>2009. The third installment, in an amount equal to the remaining balance, shall be <br>remitted on or before June 10, 2009.
(b) Interest shall not be imposed against any outstanding installment payment not yet due
from any retailer, sub-jobber, resident wholesaler, nonresident wholesaler, or <br>unclassified acquirer who files the return and makes payments as required under this <br>section.
(c) Any retailer, sub-jobber, resident wholesaler, nonresident wholesaler, or unclassified
acquirer who fails to file a return or make a payment on or before the dates provided <br>in this section shall, in addition to the tax, pay interest at the tax interest rate as <br>defined in KRS 131.010(6) from the date on which the return was required to be filed.
Effective: February 13, 2009 <br>History: Amended 2009 Ky. Acts ch. 2, sec. 2, effective February 13, 2009. -- Created 2005 Ky.
Acts ch. 168, sec. 82, effective May 31, 2005; and ch. 173, Part XXV, sec. 2, effective March <br>20, 2005.
Legislative Research Commission Note (2/13/2009). A reference to "paragraphs (a) and (b) of
this subsection" in subsection (1)(a)3. of this statute has been changed in codification to <br>"subparagraphs 1. and 2. of this paragraph" by the Reviser of Statutes under KRS 7.136(1) to <br>correct an oversight in the drafting of 2009 Ky. Acts ch. 2, sec. 2, which inserted various <br>subsection, paragraph, and subparagraph designations into this statute, but failed to change the <br>existing internal reference.
Legislative Research Commission Note (5/31/2005). 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 <br>officers whose names have been changed in 2005 legislation confirming the reorganization of <br>the executive branch. Such a correction has been made in this section.
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