KRS § 365.270 — KY Code / Title XXIX / Chapter 365 / Section 365.270
365.270 Definitions for KRS 365.260 to 365.380
Status: in_force

365.270 Definitions for KRS 365.260 to 365.380.

As used in KRS 365.260 to 365.380, unless the context otherwise requires:

(1) "Person" means and includes any individual, firm, association, company,

partnership, corporation, joint stock company, club, agency, syndicate, the

Commonwealth of Kentucky and any municipal corporation or other political

subdivision of this state, trust, receiver, trustee, fiduciary, or conservator.

(2) "Commissioner" means the commissioner of the Department of Revenue of the

Commonwealth of Kentucky.

(3) "Department" means the Department of Revenue.

(4) "Cigarettes" means and includes any roll for smoking made wholly or in part of

tobacco, irrespective of size or shape and whether or not the tobacco is flavored,

adulterated, or mixed with any other ingredient, the wrapper or cover of which is

made of paper or any other substance or material, excepting tobacco.

(5) "Wholesaler" means any person who sells cigarettes at wholesale or distributes

cigarettes to be sold at retail, and includes any manufacturer, distributor, jobber,

subjobber as defined in KRS 138.130, broker, agent, or other person, whether or not

enumerated in this subsection, who sells or distributes cigarettes.

(6) "Retailer" means and includes any person who sells cigarettes in this state to a

consumer or to any person for any purpose other than resale.

(7) "Sale" or "sell" means any transfer for consideration or gift.

(8) "Sell at wholesale," "sale at wholesale," and "wholesale sales" means and includes

any sale made in the ordinary course of trade or usual conduct of the wholesaler's

business to a retailer for the purpose of resale.

(9) "Sell at retail," "sale at retail," or "retail sales" means and includes any sale for

consumption or use made in the ordinary course of trade or usual conduct of the

seller's business.

(10) "Basic cost of cigarettes" means the invoice cost of cigarettes to the wholesaler or

retailer, as the case may be, less all trade discounts, except customary cash

discounts, plus the full face value of any stamps or any tax which may be required

by any cigarette tax act of this state or political subdivision thereof, now in effect or

hereafter enacted, if not already included in the invoice cost of the cigarettes to the

wholesaler or retailer, as the case may be.

(11) (a) "Cost to wholesaler" means the basic cost of the cigarettes involved to the

wholesaler plus the cost of doing cigarette business by the wholesaler. In

determining the cost of doing cigarette business by the wholesaler, the cost of

doing business by the wholesaler shall first be determined by applying the

standards and methods of accounting regularly employed by him, and includes

labor costs, including salaries of executives and officers, rent, depreciation,

selling costs, maintenance of equipment, delivery costs, all types of licenses,

taxes, insurance, and advertising. The cost of doing business by the wholesaler

shall then be multiplied by the fraction obtained through dividing the

wholesaler's cigarette sales for the preceding six (6) months by the

wholesaler's total sales for the same period and the product thereof shall be the

cost of doing cigarette business.

(b) In the absence of proof of a lesser or higher cost of doing cigarette business by

the wholesaler making the sale, the cost of doing cigarette business by the

wholesaler shall be presumed to be two percent (2%) of the basic cost of the

cigarettes to the wholesale dealer, plus cartage to the retail outlet, if performed

or paid for by the wholesale dealer. Cartage cost, in the absence of proof of a

lesser or higher cost, shall be presumed to be three-fourths of one percent

(0.75%) of the basic cost of the cigarettes to the wholesaler.

(12) (a) "Cost to the retailer" means the basic cost of cigarettes involved to the retailer

plus the cost of doing cigarette business by the retailer. In determining the cost

of doing cigarette business by the retailer, the cost of doing business by the

retailer shall first be determined by applying the standards and methods of

accounting regularly employed by him and includes labor, including salaries

of executives and officers, rent, depreciation, selling costs, maintenance of

equipment, delivery costs, all types of licenses, taxes, insurance, and

advertising. The cost of doing business by the retailer shall then be multiplied

by the fraction obtained through dividing the retailer's cigarette sales for the

preceding six (6) months by the retailer's total sales for the same period and

the product thereof shall be the cost of doing cigarette business.

(b) In the absence of proof of a lesser or higher cost of doing cigarette business by

the retailer making the sale, the cost of doing cigarette business by the retailer

shall be presumed to be eight percent (8%) of the basic cost of cigarettes to the

retailer.