KRS 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 phy sical 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 stam ps, 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 posses sed
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 i tem 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 ta xation, 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 departme nt 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 rem aining 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 acquire r 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 th is 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.