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

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:

(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 at 11:59 p.m. on June 30, 2018. Inventory of cigarettes in

vending machines may be accomplished by:

1. Taking an actual physical inventory;

2. Estimating the cigarettes in vending machines by reporting one-half

(1/2) of the normal fill capacity of the machines, as reflected in

individual inventory records maintained for vending machines; or

3. Using a combination of the methods prescribed in subparagraphs 1. and

2. of this paragraph;

(b) File a return with the department on or before July 10, 2018, showing the

entire wholesale and retail inventories of cigarettes in packages bearing

Kentucky tax stamps, and all unaffixed Kentucky cigarette tax stamps

possessed by them or in their control at 11:59 p.m. on June 30, 2018; and

(c) Pay a floor stock tax at a proportionate rate equal to fifty cents ($0.50) on each

twenty (20) cigarettes in packages bearing a Kentucky tax stamp and

unaffixed Kentucky tax stamps in their possession or control at 11:59 p.m. on

June 30, 2018.

(2) Every retailer and sub-jobber shall:

(a) 1. Take a physical inventory of all units of snuff possessed by them or in

their 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 entire inventory of snuff possessed by them or in their control at

11:59 p.m. on March 31, 2009; and

3. Pay a floor stock tax at a proportionate rate equal to nine and one-half

cents ($0.095) on each unit of snuff in their possession or control at

11:59 p.m. on March 31, 2009; and

(b) 1. a. Take a physical inventory of all other tobacco products possessed

by them 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 entire inventories of other tobacco products possessed

by them or in their 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 percent (7.5%) on the purchase price of other tobacco

products in their 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 for the other tobacco products subject to the tax

imposed by this paragraph.

b. If the retailer or sub-jobber cannot determine the actual amount

paid for each item of other tobacco product, the retailer or sub-

jobber may use as the purchase price the amount per unit paid as

reflected on the most recent invoice received prior to April 1,

2009, for the same category of other tobacco product.

c. To prevent double taxation, if the invoice used by the retailer or

sub-jobber to determine the purchase price of the other tobacco

product does not separately state the tax paid by the wholesaler,

the retailer or sub-jobber may reduce the amount paid per unit by

seven and one-half percent (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, shall be remitted with the return provided by the department on

or before July 10, 2018. The second installment, in an amount that brings the

total amount paid to at least two-thirds (2/3) of the total amount due, shall be

remitted on or before August 10, 2018. The third installment, in an amount

equal to the remaining balance, shall be remitted on or before September 10,

2018.

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amount due, shall be remitted with the return provided by the department on

or before July 10, 2018. The second installment, in an amount that brings the

total amount paid to at least two-thirds (2/3) of the total amount due, shall be

remitted on or before August 10, 2018. The third installment, in an amount

equal to the remaining balance, shall be remitted on or before September 10,

2018.

(b) Interest shall not be imposed against any outstanding installment payment not

yet due from any retailer, sub-jobber, resident wholesaler, nonresident

wholesaler, or unclassified acquirer who files the return and makes payments

as required under this 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 in this section shall, in addition to the tax, pay interest at

the tax interest rate as defined in KRS 131.010(6) from the date on which the

return was required to be filed.