License Requirements; Monthly Statement; Discount; Recordkeeping

# (a)

# (1)

Before any person engages in the business of selling consumable vapor products on which the tax levied in Section 40-25-81 has not been paid to the department, the person shall apply for a license in a manner provided by rule of the department. The license shall be a condition precedent to engaging or continuing in the business of selling consumable vapor products. Failure to submit a properly completed license application may result in a delay in processing the application or denial of the license.

# (2)

The department shall assess the penalties under Section 40-25-16.1 on any person who engages in the business of selling any consumable vapor product for which a license is required by this article without having first obtained and subsequently retained a valid license.

# (b)

On or before the 20th day of each month, each person on whom the tax is imposed shall submit a statement to the department showing the amounts utilized in the measurement of the tax and all other information required by the department and shall pay to the department the amount of tax shown due.

# (c)

A licensee who timely files a return with the payment due may deduct from the amount of tax payable with the return a discount of 4.75 percent of the amount of tax payable to the state. If the person does not remit the full amount listed as due on the tax return, any discount claimed by the person is disallowed.

# (d)

It is the duty of every person receiving, storing, selling, or handling consumable vapor products subject to the tax to keep and preserve all documents relating to the purchase, sale, exchange, or receipt of all consumable vapor products subject to the tax. Any authorized representative of the department may audit and inspect this documentation during normal business hours of the seller. The purchaser shall retain all purchase invoices from the source for every purchase of consumable vapor products received for a period of 90 days at the purchaser’s location. At the end of the 90 days, the purchase records shall be maintained with the required books and records for a period of three years from the date of purchase.