Tax stamps as indicia of taxes paid; exception; definitions
A. Except as otherwise provided in this chapter, all cigarettes on which
a tax is imposed by this chapter shall be placed in packages or containers,
and on each package or container shall be affixed an official stamp described
42-3455. An affixed stamp shall be evidence that the taxes levied by sections
42-3052, 42-3251 and 42-3251.01 are paid.
B. Distributors are liable for affixing official stamps or otherwise applying
tax indicia to cigarettes that are subject to a tax imposed by this chapter.
A licensed distributor shall apply a stamp to each package of cigarettes
that is sold or distributed in this state and that is subject to tax under
this chapter, including cigarettes that are subject to tax under section
42-3302. A licensed distributor shall apply a tax exempt stamp to cigarette
packages that are not subject to tax under section 42-3304, subsection
A, paragraph 2.
C. Cigarettes that are sold, distributed or transferred by a distributor
licensed pursuant to section
42-3401 to sell cigarettes are required to have affixed the luxury stamps described
in section 42-3455 at the time the cigarettes are sold, distributed or
transferred to another licensed distributor.
D. Notwithstanding subsection C of this section, a licensed distributor
can submit a written request in the form and manner prescribed by the
department in rule or procedure to sell, distribute or transfer unstamped
cigarettes to another licensed distributor. Once an accurate and complete
request is submitted to the department, the department will approve or
deny the request as prescribed in rule or procedure within ten days of
receipt of the request.
E. Cigarettes that are exempt from tax under 26 United States Code section
5704 and that are distributed according to federal regulations are not
subject to tax and do not require a stamp under this chapter.
F. A retailer shall not offer for sale cigarettes in quantities that are
not packaged as such for sale by the manufacturer.
G. Distributors may apply stamps only to cigarette packages that the distributors
have directly received from a licensed distributor, manufacturer or importer.
H. For the purposes of this section:
1. "Importer" means a person who has received approval from the
federal alcohol and tobacco tax and trade bureau to directly or indirectly
import finished tobacco products into the United States for sale or distribution,
pursuant to 26 United States Code section 5712 and 27 Code of Federal
Regulations part 41.
2. "Manufacturer" means a person who has received approval from
the federal alcohol and tobacco tax and trade bureau to manufacture, fabricate,
assemble, process or label finished tobacco products, pursuant to 26 United
States Code section 5712 and 27 Code of Federal Regulations part 40.