HB 263 (BR 271) - D. Osborne, D. Floyd
AN ACT relating to the taxation of tobacco.
Amend KRS 138.130 to define "financial instrument" "moist snuff" "wholesaler of tobacco products" and "retailer-wholesaler of tobacco products"; delete definition of "cigarette paper"; amend KRS 138.140 to require retailers to purchase tobacco products from licensed wholesalers of tobacco products or licensed retailer-wholesalers of tobacco products; impose the excise tax on a retailer that chooses to purchase untaxed tobacco products; require invoice itemization for tobacco products transferred to retailers; amend KRS 138.146 to allow for the sale of tax evidence on a deferred payment basis; require a financial instrument for those purchasing tax evidence on a deferred payment basis; set parameters for the financial instrument; give Department of Revenue authority to make demand on a financial instrument; permit the Department of Revenue to allow tax evidence compensation for resident and nonresident wholesalers and unclassified acquirers; delete outdated tax compensation language; amend KRS 138.165 to require destruction of seized cigarettes and clarify sale steps for seized vending machines; create a new section of KRS 138.130 to 138.205 to establish alternatives for retailers that may have received untaxed tobacco products; provide additional penalties for multiple offenses; allow seizure of contraband tobacco products; create a new section of KRS 138.130 to 138.205 to require the filing of reports and retention of records; amend KRS 138.195 to set the unclassified acquirer annual license fee at $500; allow the department to obtain information and reports electronically; allow for the sale or purchase of untax-paid cigarettes from one licensed wholesaler to another; create a new section of KRS 138.130 to 138.205 to set out circumstances under which a license shall be granted to a person; amend KRS 365.390 to include unclassified acquirers under the enforcement fee requirements; amend KRS 138.205 and 138.990 to conform and make technical changes; provide that deferred payment provisions are EFFECTIVE July 1, 2014.
Feb 6-introduced in House
Feb 7-to Appropriations & Revenue (H)