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138.143 Floor stocks tax on cigarettes, snuff, and other tobacco products -- Rates -- Required returns -- Installment payments.

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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 (&#36;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>(&#36;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, &quot;purchase price&quot; 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 &quot;paragraphs (a) and (b) of this subsection&quot; in subsection (1)(a)3. of this statute has been changed in codification to <br>&quot;subparagraphs 1. and 2. of this paragraph&quot; 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.