2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-316. Offenses - Penalties.

A. Any person, other than a consumer, who shall:
1. Sell, offer for sale or present as a prize or gift cigarettes without a stamp being then and there affixed to each individual package;
2. Sell cigarettes in quantities less than an individual package;
3. Knowingly cancel or mutilate any stamp affixed to any individual package of cigarettes for the purpose of concealing any violation of Section 301 et seq. of this title or with any other fraudulent intent;
4. Use any artful device or deceptive practice to conceal any violation of Section 301 et seq. of this title;
5. Refuse to surrender to the Oklahoma Tax Commission upon demand any cigarettes possessed in violation of any provision of Section 301 et seq. of this title; or
6. Knowingly or intentionally make a first sale of cigarettes without a stamp being then and there affixed to each individual package; shall be fined not more than Two Hundred Dollars ($200.00), where specific penalties are not otherwise provided.
B. Any consumer, who shall:
1. Sell, offer for sale or present as a prize or gift cigarettes without a stamp being then and there affixed to each individual package;
2. Knowingly consume, use or smoke any cigarettes upon which a tax is required to be paid without a stamp being affixed upon each individual package;
3. Knowingly cancel or mutilate any stamp affixed to any individual package of cigarettes for the purpose of concealing any violation of the Cigarette and Tobacco Products Tax Codes or with any other fraudulent intent;
4. Use any artful device or deceptive practice to conceal any violation of the Cigarette and Tobacco Products Tax Codes; or
5. Refuse to surrender to the Tax Commission upon demand any cigarettes possessed in violation of any provision of Section 301 et seq. of this title,
shall be fined not more than Two Hundred Dollars ($200.00), where specific penalties are not otherwise provided.
C. Any wholesaler, retailer or distributing agent who shall intentionally:
1. Commit any of the acts specifically enumerated in subsection A of this section, where such acts are applicable to such person;
2. Sell any cigarettes upon which tax is required to be paid by Section 301 et seq. of this title without at the time of making such sale having a valid license;
3. Make a first sale of cigarettes without at the time of first sale having a license posted so as to be easily seen by the public; or
4. Fail to deliver an invoice required by law to a purchaser of cigarettes;
shall be punished by an administrative fine of not more than Ten Thousand Dollars ($10,000.00) for the first offense, and not more than Twenty-five Thousand Dollars ($25,000.00) for the second offense, where specific penalties are not otherwise provided.
D. Any distributing agent who shall:
1. Commit any of the acts specifically enumerated in subsections A and B of this section where such provisions are applicable to such distributing agent; or
2. Store any unstamped cigarettes in the state or deliver or distribute any unstamped cigarettes within this state, without at the time of storage or delivery having a valid license posted so as to be easily seen by the public;
shall be punished by an administrative fine of not more than Ten Thousand Dollars ($10,000.00) for the first offense, and not more than Twenty-five Thousand Dollars ($25,000.00) for the second offense.
E. Any retailer violating the provisions of Section 301 et seq. of this title may:
1. For a first offense, be punished by an administrative fine of not more than One Hundred Dollars ($100.00);
2. For a second offense, be punished by an administrative fine of not more than One Thousand Dollars ($1,000.00); and
3. For a third or subsequent offense, be punished by an administrative fine of not more than Five Thousand Dollars ($5,000.00).
F. Any wholesaler violating the provisions of Section 305.1 of this title shall:
1. For a first offense, be punished by an administrative fine of not more than Five Thousand Dollars ($5,000.00); and
2. For a second or subsequent offense, be punished by an administrative fine of not more than Twenty Thousand Dollars ($20,000.00).
Administrative fines collected pursuant to the provisions of this subsection shall be deposited to the revolving fund created in Section 305.2 of this title.
G. The Tax Commission shall immediately revoke the license of a person punished for a violation pursuant to the provisions of paragraph 3 of subsection E of this section or a person punished for a violation pursuant to the provisions of subsection F of this section. A person whose license is so revoked shall not be eligible to receive another license pursuant to the provisions of Section 301 et seq. of this title for a period of ten (10) years.
H. Whoever, with intent to defraud Oklahoma:
1. Fails to keep or make any record, return, report, or inventory, or keeps or makes any false or fraudulent record, return, report, or inventory, required by Section 301 et seq. of this title or rules promulgated thereunder;
2. Refuses to pay any tax imposed by Section 301 et seq. of this title, or attempts in any manner to evade or defeat the tax or the payment thereof; or
3. Fails to comply with any requirement of Section 301 et seq. of this title;
shall, for each such offense, be punished with an administrative fine of not more than Ten Thousand Dollars ($10,000.00).
I. Whoever knowingly omits, neglects, or refuses to comply with any duty imposed upon the person by Section 301 et seq. of this title, or to do, or cause to be done, any of the things required by Section 301 et seq. of this title, or does anything prohibited by Section 301 et seq. of this title, shall, in addition to any other penalty provided in Section 301 et seq. of this title, pay an administrative fine of One Thousand Dollars ($1,000.00).
J. Whoever fails to pay any tax imposed by Section 301 et seq. of this title at the time prescribed by law or rules, shall, in addition to any other penalty provided in Section 301 et seq. of this title, be liable to a penalty of five hundred percent (500%) of the tax due but unpaid.
K. 1. All cigarettes which are held for sale or distribution within the borders of Oklahoma, in violation of the requirements of Section 301 et seq. of this title, and the machinery used to manufacture counterfeit cigarettes shall be forfeited to Oklahoma. All cigarettes and machinery forfeited to Oklahoma under this paragraph shall be destroyed.
2. All fixtures, equipment, and all other materials and personal property on the premises of any distributor or retailer who, with intent to defraud the state, fails to keep or make any record, return, report, or inventory; keeps or makes any false or fraudulent record, return, report, or inventory required by Section 301 et seq. of this title; refuses to pay any tax imposed by Section 301 et seq. of this title; or attempts in any manner to evade or defeat the requirements of Section 301 et seq. of this title shall be forfeited to Oklahoma.
L. Notwithstanding any other provision of law, the sale or possession for sale of counterfeit cigarettes, or the sale or possession for sale of counterfeit cigarettes by a manufacturer, distributor, or retailer shall result in the seizure of the product and related machinery by the Tax Commission or any law enforcement agency and shall be punishable as follows:
1. A first violation with a total quantity of less than two cartons of cigarettes or the equivalent amount of other cigarettes shall be punishable by an administrative fine not to exceed Ten Thousand Dollars ($10,000.00);
2. A subsequent violation with a total quantity of less than two cartons of cigarettes, or the equivalent amount of other cigarettes shall be punishable by an administrative fine not to exceed Twenty-five Thousand Dollars ($25,000.00), and shall also result in the revocation by the Tax Commission of the manufacturer, wholesaler, or retailer license;
3. A first violation with a total quantity of more than two cartons of cigarettes, or the equivalent amount of other cigarettes, shall be punishable by an administrative fine not to exceed Twenty-five Thousand Dollars ($25,000.00); and
4. A subsequent violation with a quantity of two cartons of cigarettes or more, or the equivalent amount of other cigarettes shall be punishable by an administrative fine not to exceed Fifty Thousand Dollars ($50,000.00), and shall also result in the revocation by the Tax Commission of the manufacturer, wholesaler, or retailer license.
For the purposes of this section, “counterfeit cigarettes” includes cigarettes that have false manufacturing labels or tobacco product packs without tax stamps or the applicable tax stamp or with counterfeit tax stamps or a combination thereof. Any counterfeit cigarette seized by the Tax Commission shall be destroyed.
M. The Tax Commission shall immediately revoke the license of a person punished for a violation pursuant to the provisions of subsection H of this section. A person whose license is so revoked shall not be eligible to receive another license for a period of five (5) years.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965. Amended by Laws 1999, c. 162, § 3, eff. June 16, 1999; Laws 2003, c. 475, § 5, eff. Nov. 1, 2003; Laws 2008, c. 378, § 7, emerg. eff. June 4, 2008; Laws 2009, c. 434, § 7, eff. Jan. 1, 2010.