Download as PDF
365.270 Definitions for KRS 365.260 to 365.380.
As used in KRS 365.260 to 365.380, unless the context otherwise requires:
(1) "Person" means and includes any individual, firm, association, company,
partnership, corporation, joint stock company, club, agency, syndicate, the
Commonwealth of Kentucky and any municipal corporation or other political
subdivision of this state, trust, receiver, trustee, fiduciary, or conservator.
(2) "Commissioner" means the commissioner of the Department of Revenue of the
Commonwealth of Kentucky.
(3) "Department" means the Department of Revenue.
(4) "Cigarettes" means and includes any roll for smoking made wholly or in part of
tobacco, irrespective of size or shape and whether or not the tobacco is
flavored, adulterated, or mixed with any other ingredient, the wrapper or cover
of which is made of paper or any other substance or material, excepting
tobacco.
(5) "Wholesaler" means any person who sells cigarettes at wholesale or
distributes cigarettes to be sold at retail, and includes any manufacturer,
distributor, jobber, subjobber as defined in KRS 138.130(12), broker, agent, or
other person, whether or not enumerated in this subsection, who sells or
distributes cigarettes.
(6) "Retailer" means and includes any person who sells cigarettes in this state to a
consumer or to any person for any purpose other than resale.
(7) "Sale" or "sell" means any transfer for consideration or gift.
(8) "Sell at wholesale," "sale at wholesale," and "wholesale sales" means and
includes any sale made in the ordinary course of trade or usual conduct of the
wholesaler's business to a retailer for the purpose of resale.
(9) "Sell at retail," "sale at retail," or "retail sales" means and includes any sale for
consumption or use made in the ordinary course of trade or usual conduct of
the seller's business.
(10) "Basic cost of cigarettes" means the invoice cost of cigarettes to the wholesaler
or retailer, as the case may be, less all trade discounts, except customary cash
discounts, plus the full face value of any stamps or any tax which may be
required by any cigarette tax act of this state or political subdivision thereof,
now in effect or hereafter enacted, if not already included in the invoice cost of
the cigarettes to the wholesaler or retailer, as the case may be.
(11) (a) "Cost to wholesaler" means the basic cost of the cigarettes involved to
the wholesaler plus the cost of doing cigarette business by the
wholesaler. In determining the cost of doing cigarette business by the
wholesaler, the cost of doing business by the wholesaler shall first be
determined by applying the standards and methods of accounting
regularly employed by him, and includes labor costs, including salaries of
executives and officers, rent, depreciation, selling costs, maintenance of
equipment, delivery costs, all types of licenses, taxes, insurance, and
advertising. The cost of doing business by the wholesaler shall then be
multiplied by the fraction obtained through dividing the wholesaler's
cigarette sales for the preceding six (6) months by the wholesaler's total
sales for the same period and the product thereof shall be the cost of
(b)
(12) (a)
(b)
doing cigarette business.
In the absence of proof of a lesser or higher cost of doing cigarette
business by the wholesaler making the sale, the cost of doing cigarette
business by the wholesaler shall be presumed to be two percent (2%) of
the basic cost of the cigarettes to the wholesale dealer, plus cartage to
the retail outlet, if performed or paid for by the wholesale dealer. Cartage
cost, in the absence of proof of a lesser or higher cost, shall be presumed
to be three-fourths of one percent (0.75%) of the basic cost of the
cigarettes to the wholesaler.
"Cost to the retailer" means the basic cost of cigarettes involved to the
retailer plus the cost of doing cigarette business by the retailer. In
determining the cost of doing cigarette business by the retailer, the cost of
doing business by the retailer shall first be determined by applying the
standards and methods of accounting regularly employed by him and
includes labor, including salaries of executives and officers, rent,
depreciation, selling costs, maintenance of equipment, delivery costs, all
types of licenses, taxes, insurance, and advertising. The cost of doing
business by the retailer shall then be multiplied by the fraction obtained
through dividing the retailer's cigarette sales for the preceding six (6)
months by the retailer's total sales for the same period and the product
thereof shall be the cost of doing cigarette business.
In the absence of proof of a lesser or higher cost of doing cigarette
business by the retailer making the sale, the cost of doing cigarette
business by the retailer shall be presumed to be eight percent (8%) of the
basic cost of cigarettes to the retailer.
Effective:June 26, 2007
History: Amended 2007 Ky. Acts ch. 84, sec. 2, effective June 26, 2007. -Amended 2005 Ky. Acts ch. 85, sec. 687, effective June 20, 2005. -- Amended
1990 Ky. Acts ch. 280, sec. 2, effective July 13, 1990. -- Created 1956 Ky. Acts
ch. 243, sec. 2, effective May 18, 1956.
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.