[§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 and effect.
(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 to another.
(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:
(1) Include:
(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 department shall:
(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.
(o) Any cigarette, package of cigarettes,
carton of cigarettes, container of cigarettes, tobacco product, package of
tobacco products, or any container of tobacco products unlawfully sold,
possessed, kept, stored, acquired, distributed, or transported in violation of
this section may be seized and ordered forfeited pursuant to chapter 712A. [L
2005, c 131, pt of §1, §9(2); am L 2009, c 30, §2]