245-2.5 Retail tobacco permit
(a) Beginning December 1, 2006, every retailer engaged in the retail sale
of cigarettes and other tobacco products upon which a tax is required
to be paid under this chapter shall obtain a retail tobacco permit.
(b) Beginning March 1, 2007, it shall be unlawful for any retailer engaged
in the retail sale of cigarettes and other tobacco products upon which
a tax is required to be paid under this chapter to sell, possess, keep,
acquire, distribute, or transport cigarettes or other tobacco products
for retail sale unless a retail tobacco permit has been issued to the
retailer under this section and the retail tobacco permit is in full force
(c) The retail tobacco permit shall be issued by the department upon application
by the retailer in the form and manner prescribed by the department, and
the payment of a fee of $20. Permits shall be valid for one year, from
December 1 to November 30, and renewable annually. Whenever a retail tobacco
permit is defaced, destroyed, or lost, or the permittee relocates the
permittee's business, the department may issue a duplicate retail
tobacco permit to the permittee for a fee of $5 per copy.
(d) A separate retail tobacco permit shall be obtained for each place of
business owned, controlled, or operated by a retailer. A retailer that
owns or controls more than one place of business may submit a single application
for more than one retail tobacco permit. Each retail tobacco permit issued
shall clearly describe the place of business where the operation of the
business is conducted.
(e) Any entity that operates as a dealer or wholesaler and also sells cigarettes
or other tobacco products to consumers at retail shall acquire a separate
retail tobacco permit.
(f) A retail tobacco permit shall be nonassignable and nontransferable
from one entity to another entity. A retail tobacco permit may be transferred
from one business location to another business location after an application
has been filed with the department requesting that transfer and approval
has been obtained from the department.
(g) A retail tobacco permit issued under this section shall be displayed
at all times in a conspicuous place at the place of business requiring
the retail tobacco permit.
(h) Any sales of cigarettes or tobacco products made through a cigarette
or tobacco product vending machine are subject to the terms, conditions,
and penalties of this chapter. A retail tobacco permit need not be displayed
on cigarette or tobacco product vending machines if the retail tobacco
permit holder is the owner of the cigarette or tobacco product vending
machines and the cigarette or tobacco product vending machines are operated
at the location described in the retail tobacco permit.
(i) No retailer shall purchase any pack of cigarettes without the appropriate
tax stamp being affixed to the bottom of the pack as required by this chapter.
(j) A vehicle from which cigarettes or tobacco products are sold is considered
a place of business and requires a retail tobacco permit. Retail tobacco
permits for a vehicle shall be issued bearing a specific motor vehicle
identification number and are valid only when physically carried in the
vehicle having the corresponding motor vehicle identification number.
Retail tobacco permits for vehicles shall not be moved from one vehicle
(k) A permittee shall be subject to the inspection and investigation requirements
of this chapter and shall provide the department or the attorney general
with any information deemed necessary to verify compliance with the requirements
of this chapter.
(l) A permittee shall keep a complete and accurate record of the permittee's
cigarette or tobacco product inventory. The records shall:
(A) A written statement containing the name and address of the permittee's
source of its cigarettes and tobacco products;
(B) The date of delivery, quantity, trade name or brand, and price of the
cigarettes and tobacco products; and
(C) Documentation in the form of any purchase orders, invoices, bills of
lading, other written statements, books, papers, or records in whatever
format, including electronic format, which substantiate the purchase or
acquisition of the cigarettes and tobacco products stored or offered for sale; and
(2) Be offered for inspection and examination within twenty-four hours
of demand by the department or the attorney general, and shall be preserved
for a period of three years; provided that:
(A) Specified records may be destroyed if the department and the attorney
general both consent to their destruction within the three-year period; and
(B) Either the department or the attorney general may adopt rules pursuant
to chapter 91 that require specified records to be kept longer than a
period of three years.
(m) The department may suspend or, after hearing, revoke or decline to
renew any retail tobacco permit issued under this chapter whenever the
department finds that the applicant or permittee has failed to comply
with this chapter or any rule adopted under this chapter, or for any other
good cause. Good cause includes but is not limited to instances where
an applicant or permittee has:
(1) Submitted a false or fraudulent application or provided a false statement
in an application; or
(2) Possessed or displayed a false or fraudulent retail tobacco permit.
Upon suspending or revoking any retail tobacco permit, the department shall
request that the permittee immediately surrender any retail tobacco permit
or duplicate issued to the permittee, and the permittee shall surrender
the permit or duplicate promptly to the department as requested.
(n) Whenever the department suspends, revokes, or declines to renew a retail
tobacco permit, the department shall notify the applicant or permittee
immediately and afford the applicant or permittee a hearing, if requested
and if a hearing has not already been afforded. After the hearing, the
(1) Rescind its order of suspension;
(2) Continue the suspension;
(3) Revoke the retail tobacco permit;
(4) Rescind its order of revocation;
(5) Decline to renew the retail tobacco permit; or
(6) Renew the retail tobacco permit.