42-3203

42-3203. Stamped packages required for
cigarettes; exception

(L07, Ch. 222, sec. 10)

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 section 42-3006 or 42-3202.03.
An affixed stamp shall be evidence that the taxes levied by sections 42-3052, 42-3251 and
42-3251.01 are paid.

B. Except as provided in subsection C of this section, cigarette 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 cigarette 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 cigarette 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 42-3201 to sell cigarettes are not required to have affixed the
luxury stamps described in section 42-3006 at the time the cigarettes are sold,
distributed or transferred to another licensed distributor.

D. Cigarettes that are exempt from tax under 26 United States Code section 5701 and
that are distributed according to federal regulations are not subject to tax and do not
require a stamp under this chapter.

E. A retailer shall not offer for sale cigarettes in quantities that are not
packaged as such for sale by the cigarette manufacturer.

F. Cigarette distributors may apply stamps only to cigarette packages that the
cigarette distributors have directly received from a licensed cigarette distributor,
licensed cigarette manufacturer or licensed cigarette importer.