Legal Resources - Tax Rules

Tax Rules: Final: 5703-15

5703-15-17 - Storage of unstamped cigarettes by dealer

(A) As used in this rule:

(1) "Dealer" means the holder of a current valid wholesale cigarette dealer's license issued pursuant to section 5743.15 of the Revised Code and who is authorized to purchase cigarette tax indicia from the treasurer of state.

(2) "Unstamped cigarettes" means packages of cigarettes, to which Ohio cigarette tax indicia have not been applied and upon which the Ohio cigarette tax has not been paid.

(3) "Place of business" means the location where the dealer applies tax indicia to cigarettes, as referenced on his license.

(4) "Public warehouse" means a place operated by a person in the business of storing goods for others for consideration.

(5) "Warehouseman" means the individual, partnership, corporation, or other person that controls and operates a public warehouse.

(B) Except as provided in this rule, no dealer shall store unstamped cigarettes at any place other than his place of business.

(C) A dealer may store unopened cases of unstamped cigarettes at the same public warehouse where the manufacturer of the cigarettes, from whom the dealer purchased them, stored the cigarettes immediately prior to such purchase. The dealer may store unopened cases of unstamped cigarettes at any other public warehouse only after approval of the department of taxation.

(D) Within forty-eight hours of the purchase from the manufacturer, the dealer shall, in writing, notify the department of taxation that he is storing unstamped cigarettes at a public warehouse. The dealer shall disclose the name and location of the warehouse and the quantity of cigarettes purchased.

(E) Any cigarettes owned by the dealer and stored at a place other than his place of business shall be considered part of the dealer's inventory for purposes of Chapter 5743. of the Revised Code and Chapter 5703-15 of the Administrative Code.

(F) No unstamped cigarettes shall be transported between warehouses, or between a warehouse and a dealer's place of business, by any means other than by a regulated common carrier.

(G) A dealer shall not transfer title of unstamped cigarettes to any person in this state except the cigarette manufacturer from whom they were purchased. A dealer shall not transfer possession of such unstamped cigarettes to any person other than a warehouseman or regulated common carrier.

(H) A warehouseman or other person who acquires an interest in unstamped cigarettes through lien or judgment may only sell such cigarettes to a dealer or cigarette manufacturer, and then, only after prior approval of the department of taxation.

(I) Any violation of this rule constitutes cause for revocation of the dealer's wholesale license by the tax commissioner.

Effective: 1-18-85

Promulgated under: 5703.14

Authorized by: 5703.05

Amplifies: 5743.01, 5743.03, 5743.112, 5743.15, 5743