The federal PACT Act requirements concerning cigarettes, roll-your-own tobacco, and smokeless tobacco products apply. The federal PACT Act requires any person who sells, transfers, or ships cigarettes, roll-your-own tobacco, and smokeless tobacco into a state to register with the tobacco tax administrator of the state. The federal PACT Act requires delivery sellers to comply with shipping requirements.
Every manufacturer, whether located in Kentucky or outside of Kentucky, that ships tobacco products to a distributor, retailer, retail distributor, or any other person location in Kentucky shall file a report with the Department of Revenue on or before the 20th of each month identifying all shipments made by the manufacturer during the preceding month.
No person may act as a distributor or retailer of non-tax paid tobacco products without first obtaining a license from the Department of Revenue. Tobacco products distributors must submit an Application for Cigarette and Tobacco Products Licenses (Form 73A181) and a $500 license fee to obtain a Tobacco Products Distributor License from the Department of Revenue. Tobacco products retailers must submit a Kentucky Tax Registration Application (Form 10A100) to obtain a Sales and Use Tax Permit and Form 73A181 and a $100 license fee to obtain a Retail Distributor License. Licenses expire on July 1st of each year and must be renewed annually by filing the same forms.
Ky. Rev. Stat. § 138.195: License required for various dealers; Fees; Revocation of licenses; Appeals; Records; Reports; Administrative regulations; Tax returns
Additional information about licensing in Kentucky is available at the Operating Your Business and Definitions link above.
Kentucky does not have any specific age verification requirements for the shipping of tobacco products. However, the federal PACT Act age verification requirements for the shipping of cigarettes, roll-your-own tobacco, and smokeless tobacco products apply.
Kentucky imposes an excise tax on every distributor for the privilege of selling tobacco products in the state. The licensed distributor that first possesses tobacco products for sale to a retailer in Kentucky or for sale to a person who does not hold a tobacco products license will be the distributor liable for the tax. However, a licensed distributor may sell tobacco products to another licensed distributor without payment of the excise tax. In such case, the purchasing licensed distributor will be liable for the tax. According to staff, there is no extra tax for shipping tobacco products.
Ky. Rev. Stat. § 138.140(4): State tax and surtax on sale of cigarettes; Excise tax on distributors and licensed retail distributors of tobacco products; Rates; Liability for and remittance of tax; Administrative regulations; General Assembly’s recognition of effect of increased tobacco taxes on public health
Additional information about taxation in Kentucky, including information about tax rates, filings, and forms, is available at the Taxation and Definitions link above.
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