Notice

Notice Number:02-12
Tax Type:Cigarette and Tobacco Products
Brief Description:Notice of cigarette tax increase and inventory requirements.
Keywords:
Approval Date:12/09/2002


Body:
Office of the Secretary


NOTICE 02-12

Notice of Cigarette Tax Increase and Inventory Requirements


The 2002 Kansas legislature enacted Senate Bill 39, which increased the cigarette tax rate effective July 1, 2002 to $.70 on each pack of 20 cigarettes or a fractional part thereof or $.875 on each pack of 25 cigarettes. Senate Bill 39 also required your company to take inventory of the cigarette stamps not attached to cigarette packs (Wholesalers Only) and stamped cigarette packs (Wholesalers, Retailers, and Vending Machine Operators) on hand at 12:01 a.m., July 1, 2002. *The final installment payment is due December 30, 2002.

Additionally, Senate Bill 39 provides that the tax rate increases to $.79 on each pack of 20 cigarettes or fractional part thereof or $.99 on each pack of 25 cigarettes on and after January 1, 2003. Therefore, your company is again required to take inventory of the cigarette stamps not attached to cigarette packs (Wholesalers Only) and stamped cigarette packs (Wholesalers, Retailers, and Vending Machine Operators) on hand at 12:01 am., January 1, 2003.

Your company is required to pay a tax of $.09 on each 20-cigarette pack or $.115 on each 25-cigarette pack in stock as of 12:01 a.m., January 1, 2003. Payment of the additional tax on your inventory can be submitted in full on or before January 30, 2003 or made in three equal installments on or before January 30, 2003, March 30, 2003 and on or before June 30, 2003. Penalty and interest will be assessed if the payment is not received in a timely manner.

Enclosed is the Tax Rate Change Inventory Report (Form CG-117) and three cigarette tax payment vouchers (CGVs). Complete Form CG-117 and return it and the corresponding voucher with your initial payment. Please keep a copy of each voucher you submit as well as a copy of the Tax Rate Change Inventory Report for your records.

Please be advised that failure to file the Tax Rate Change Inventory Report (Form CG-117) and pay the inventory tax may result in license suspension or revocation and/or fines. Thank you for your cooperation in this matter.


Enclosures


* Payment of the inventory tax rate increase effective July 1, 2002 was allowed to be submitted in full or made in three equal installments on July 30, September 30 and December 30, 2002.




Date Composed: 12/09/2002 Date Modified: 12/09/2002