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 in § 42-3455 . An affixed stamp shall
be evidence that the taxes levied by §§ 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 § 42-3302 . A licensed distributor shall apply a tax exempt stamp to cigarette packages that are not subject to tax under § 42-3304, subsection A , paragraph 2.
C. Cigarettes that are sold, distributed or transferred by a distributor licensed pursuant to § 42-3401 to sell cigarettes are required to have affixed the luxury stamps described in § 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 § 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 § 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 § 5712 and 27 Code of Federal Regulations part 40.