103 KAR 41:110. Sample of cigarettes.
RELATES TO: KRS 138.155
STATUTORY AUTHORITY: KRS 131.130(1)
NECESSITY, FUNCTION, AND CONFORMITY: This administrative regulation, under authority of KRS 138.155, describes the procedure for payment of tax on sample cigarettes on a reporting basis in lieu of affixing cigarette tax evidence to individual packages.
Section 1. In lieu of the affixture of stamps, tax on cigarettes packaged and distributed by manufacturers as a complimentary gift to consumers shall be paid on a monthly reporting basis. The report and tax remittance must be submitted to the Department of Revenue, Frankfort, Kentucky, by the manufacturer on or before the 20th of the month following the month in which the cigarettes are shipped from the factory. The report must set forth the number of cigarettes distributed and the method by which these cigarettes were distributed to consumers.
Section 2. All packages tax-paid by the manufacturer on a monthly reporting system must bear an inscription beneath the cellophane wrapper indicating that the cigarettes contained therein are "not for sale."
Section 3. The records of the manufacturer relative to the distribution of sample cigarettes must be retained for a period of two (2) years and subject to audit by agents of the department. (CT-31; 1 Ky.R. 333; eff. 2-5-1975; TAm eff. 5-20-2009; TAm eff. 6-28-2016.)