138.195 License required for various dealers -- Fees -- Records -- Administrative regulations governing reports required -- Tax returns -- Revocation of licenses -- Appeals.
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<![CDATA[138.195 License required for various dealers -- Fees -- Records -- Administrative regulations governing reports required -- Tax returns -- Revocation of licenses -- <br>Appeals. (1) 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 <br>wholesaler, vending machine operator, sub-jobber, transporter or unclassified acquirer of <br>such cigarettes without first obtaining a license from the department as set out in this <br>section. (2) 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 <br>has not been paid are received. Each nonresident wholesaler shall secure a separate license <br>for each place of business at which evidence of Kentucky cigarette tax is affixed or from <br>where Kentucky cigarette tax is reported and paid. Such a license or licenses shall be <br>secured on or before July 1 of each year, and each licensee shall pay the sum of five <br>hundred dollars ($500) for each such year or portion thereof for which such license is <br>secured. (3) 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 <br>is located within or without this state. Such license or licenses shall be secured on or before <br>July 1 of each year, and each licensee shall pay the sum of five hundred dollars ($500) for <br>each such year or portion thereof for which such license is secured. (4) 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 <br>before July 1 of each year, and each licensee shall pay the sum of twenty-five dollars ($25) <br>for each year or portion thereof for which such license is secured. No vending machine <br>shall be operated within this Commonwealth without having prominently affixed thereto <br>the name of its operator, together with the license number assigned to such operator by the <br>department. The department shall prescribe by regulation the manner in which the <br>information shall be affixed to the vending machine. (5) 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 <br>pay the sum of fifty dollars ($50) for each such year or portion thereof for which such <br>license is secured. No transporter shall transport any cigarettes without having in actual <br>possession an invoice or bill of lading therefor, showing the name and address of the <br>consignor and consignee, the date acquired by the transporter, the name and address of the <br>transporter, the quantity of cigarettes being transported, together with the license number <br>assigned to such transporter by the department. (6) 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 <br>before July 1 of each year, and each licensee shall pay the sum of fifty dollars ($50) for <br>each such year or portion thereof for which such license is secured. (7) 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 <br>business is so diversified as to justify such requirement. (8) 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 <br>exercised, as is deemed reasonably necessary for the regulation of such licensees, and to <br>protect the revenues of the state. Failure on the part of such licensee to comply with the <br>provisions of KRS 138.130 to 138.205 or any regulations promulgated thereunder, or to <br>permit an inspection of premises, machines or vehicles by an authorized agent of the <br>department at any reasonable time shall be grounds for the revocation of any license issued <br>by the department, after due notice and a hearing by the department. The commissioner of <br>the Department of Revenue may assign a time and place for such hearing and may appoint <br>a conferee who shall conduct a hearing, receive evidence and hear arguments. Such <br>conferee shall thereupon file a report with the commissioner together with a <br>recommendation as to the revocation of such license. From any revocation made by the <br>commissioner of the Department of Revenue on such report, the licensee may prosecute an <br>appeal to the Kentucky Board of Tax Appeals as provided by law. Any person whose <br>license has been revoked for the willful violation of any provision of KRS 138.130 to <br>138.205 shall not be entitled to any license provided for in this section, or have any interest <br>in any such license, either disclosed or undisclosed, either as an individual, partnership, <br>corporation or otherwise, for a period of one (1) year after such revocation. (9) 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, <br>if that individual is the exclusive owner of that corporation, or between a subsidiary <br>corporation and its parent corporation. (10) Every manufacturer located or doing business in this state and the first person to import cigarettes, other tobacco products, or snuff from a foreign manufacturer shall keep written <br>records of all shipments of cigarettes, other tobacco products, or snuff to persons within <br>this state, and shall submit to the department monthly reports of such shipments. (11) No person licensed under this section except nonresident wholesalers shall either sell to or purchase from any other such licensee untax-paid cigarettes. (12) Wholesalers of other tobacco products and snuff shall pay and report the tax levied by KRS 138.140(4) and (5) on or before the twentieth day of the calendar month following the <br>month in which the possession or title of the other tobacco products or smokeless tobacco <br>products are transferred from the wholesaler to retailers or consumers in this state. The <br>Department of Revenue shall promulgate administrative regulations setting forth the details <br>of the reporting requirements. (13) A tax return shall be filed for each reporting period whether or not tax is due. Effective: March 24, 2009 <br>History: 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 <br>ch. 85, sec. 350, effective June 20, 2005; and ch. 168, sec. 85, effective June 1, 2005. -- <br>Amended 1988 Ky. Acts ch. 40, sec. 1, effective July 15, 1988. -- Amended 1982 Ky. Acts <br>ch. 386, sec. 4, effective July 15, 1982. -- Amended 1964 Ky. Acts ch. 141, sec. 26. -- Created <br>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, <br>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 <br>2008 Ky. Acts ch. 132. The provisions in Sections 1 to 12 of this Act shall apply retroactively <br>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 <br>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 <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. 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 <br>Section 81 of this Act" (KRS 138.140). In merging the provisions of 2005 Ky. Acts chs. 168 <br>and 173 in codification, subsections (3) and (4) became subsections (4) and (5). ]]>