Tax Rules: Final: 5703-15-20
5703-15-20 Licensing cigarette manufacturers and
importers and registration of other tobacco products
manufacturers, importers, and brokers.
(A) (1) Cigarette manufacturers and cigarette importers will
be required to make and deliver an application to the tax
commissioner, which states the name of the applicant, the
nature of the applicant’s business, and any other information
required by the commissioner. Any license issued under such
application will be valid for a period of one year commencing
on the fourth Monday of May.
(2) All cigarette manufacturers and importers that apply for
a license under paragraph (A) of this rule may be required to
provide documentation satisfactory to the commissioner that
their products are legal for sale. Manufacturers whose
cigarette brands are listed on the attorney general’s web
site under section 1346.05 of the Revised Code will be
presumed to have met this requirement. Any cigarette
manufacturer or importer shipping cigarette brands not listed
on the attorney general’s web site may be required to provide
documentation showing that the cigarettes are legal for sale
into another state and that such cigarettes will only be
shipped to cigarette wholesalers licensed to do business in
such other state.
(B)(1) Unless the commissioner grants an alternative filing
frequency, all cigarette manufacturers and cigarette
importers are required to file reports with the commissioner
by the end of each month. This report shall set forth the
brands and quantity of all cigarettes shipped into this
state, including the quantity of all brands of cigarettes not
manufactured by signatories to the "Master Settlement
Agreement," that were shipped into this state during the
preceding month. Additionally, the report shall detail the
recipient’s name and address, the invoice numbers, invoice
dates, and any other information the commissioner prescribes.
(2) Failure to file the report required under section
5743.072 of the Revised Code and described in paragraph
(B)(1) of this rule shall be grounds for revocation of the
license authorizing such manufacturer or importer to send
cigarettes into this state. The commissioner shall send, by
certified mail or personal delivery, a notice of the intent
to revoke such manufacturer’s or importer’s license. In the
event such manufacturer or importer contests the
commissioner’s determination, such person must, within ten
days of the receipt of this notice, petition the commissioner
on such finding. The commissioner shall timely provide such
person with a hearing on the matter in accordance with
Chapter 119. of the Revised Code and will issue a final
determination on the revocation of such license. Upon any
such revocation, the commissioner shall immediately notify
the attorney general to take necessary actions, including
those prescribed under section 1346.05 of the Revised Code.
(C)(1) Section 5743.66 of the Revised Code requires all
manufacturers, importers, or brokers of other tobacco
products to register with the commissioner prior to selling
or distributing other tobacco products in this state. All
manufacturers, importers, or brokers of other tobacco
products will be required to make and deliver an application
to the commissioner that states the name of the applicant,
the nature of the applicant’s business, and any other
information required by the commissioner. Such manufacturer,
importer, or broker must register by the first day of
February of each year. Any registration issued under such
application will be valid for a period of one year commencing
on the first day of February.
(2) Unless the commissioner grants an alternative filing
frequency, all registered manufacturers, importers, or
brokers of other tobacco products shall file a report with
the commissioner by the end of each month. This report shall
be on a form and in a manner prescribed by the commissioner
and shall detail all sales of roll-your-own tobacco by brand
and quantity; all sales of other tobacco products to
distributors located in this state for the prior month; a
current list of prices; invoice numbers; invoice dates;
invoice amounts; and any other information the commissioner
prescribes.
(3) All manufacturers, importers, or brokers of roll-your-own
tobacco that register under paragraph (C) of this rule may be
required to provide documentation satisfactory to the
commissioner that their products are legal for sale.
Manufacturers whose roll-your-own brands are listed on the
attorney general’s web site under section 1346.05 of the
Revised Code will be presumed to have met this requirement.
Any manufacturer, importer or broker shipping roll-your-own
tobacco brands not listed on the attorney general’s web site
may be required to provide documentation showing that the
roll-your-own tobacco is legal for sale into another state
and that such roll-your-own tobacco will only be shipped to
distributors licensed to do business in such other state.
(4) Failure to file the report required under section 5743.66
of the Revised Code and described in paragraph (C)(3) of this
rule shall be grounds for revocation of the registration
authorizing such manufacturer, importer, or broker to send
other tobacco products into this state. The commissioner
shall send, by certified mail or personal delivery, a notice
of the intent to revoke such manufacturer’s, importer’s, or
broker’s registration. In the event such manufacturer,
importer, or broker contests the commissioner’s
determination, such person must, within ten days of the
receipt of this notice, petition the commissioner on such
finding. The commissioner shall timely provide such person
with a hearing on the matter in accordance with Chapter 119.
of the Revised Code and will issue a final determination on
the revocation of such registration. Upon any such
revocation, the commissioner shall immediately notify the
attorney general to take necessary actions, including those
prescribed under section 1346.05 of the Revised Code.
(D) Nothing in this rule shall hinder the attorney general
from removing from the list issued under section 1346.05 of
the Revised Code any manufacturer that is not in compliance
with the reporting requirement or any other rule promulgated
by the commissioner under these provisions.
(E)(1) Except as provided in section 5743.20 of the Revised
Code, no cigarette wholesaler may purchase cigarettes from
anyone other than a licensed cigarette manufacturer or
importer.
(2) The list of licensed cigarette manufacturers and
importers is public information pursuant to section 5743.20
of the Revised Code.
(3) Except as provided in section 5743.20 of the Revised
Code, no distributor of other tobacco products shall purchase
other tobacco products from anyone other than a registered
manufacturer, importer, or broker of other tobacco products.
(4) Any cigarettes held for sale or distribution in violation
of this rule are subject to confiscation under section
5743.08 of the Revised Code, and any other tobacco products
held for sale or distribution in violation of this rule are
subject to confiscation under section 5743.55 of the Revised
Code. Such confiscation is in addition to any penalties
available under section 5743.99 of the Revised Code or any
other applicable provision of law.
Effective: 10-11-07
Promulgated under: 5703.14
Authorized by: 1346.08, 5703.05, 5743.15
Amplifies: 5743.15, 5743.072, 5743.18, 5743.66
Prior effective dates: 5-19-06 (Emer.), 8-11-06