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