Oklahoma § 68-304 - Licenses - Fees - Conditions - Revocation or suspension

§ 68-304. Licenses - Fees - Conditions - Revocation or suspension

A. Every manufacturer and wholesaler of cigarettes in this

state, as a condition of carrying on such business, shall annually

secure from the Oklahoma Tax Commission a written license, and shall

pay therefor an annual fee of Two Hundred Fifty Dollars ($250.00).

Application for such license, which shall be made upon such forms as

prescribed by the Oklahoma Tax Commission, shall include the

following:

1. The applicant’s agreement to the jurisdiction of the Tax

Commission and the courts of this state for the purpose of

enforcement of the provisions of Section 301 et seq. of this title;

2. The applicant’s agreement to abide by the provisions of

Section 301 et seq. of this title and the rules promulgated by the

Tax Commission with reference thereto;

3. The wholesaler applicant’s agreement to sell cigarettes only

to licensed retailers or Indian tribal entities or licensees of

Indian tribal entities; and

4. The manufacturer applicant's agreement to sell cigarettes

only to a licensed wholesaler.

This license, which will be for the ensuing year, must at all

times be displayed in a conspicuous place so that it can be seen.

Persons operating more than one place of business must secure a

license for each place of business. "Place of business" shall be

construed to include the place where orders are received, or where

cigarettes are sold. A "place of business" cannot be a location

with a physical residential address. The Tax Commission shall not

issue a license for a place of business with a physical residential

address. If cigarettes are sold on or from any vehicle, the vehicle

shall constitute a place of business and the regular license fee

shall be paid with respect thereto. However, if the vehicle is

owned or operated by a place of business for which the regular fee

is paid, the annual fee for the license with respect to such vehicle

shall be only Ten Dollars ($10.00). The expiration for such vehicle

license shall expire on the same date as the current license of the

place of business.

Provided, that the Tax Commission shall not authorize the use of

a stamp-metering device by any manufacturer or wholesaler who does

not maintain a warehouse or wholesale establishment or place of

business within the State of Oklahoma from which cigarettes are

received, stocked and sold and where such metering device is kept

and used; but the Tax Commission may, in its discretion, permit the

Oklahoma Statutes - Title 68. Revenue and Taxation

use of such metering device by manufacturers and wholesalers of

cigarettes residing wholly within another state where such state

permits a licensed Oklahoma resident, manufacturer or wholesaler of

cigarettes the use of the metering device of such state without

first requiring that such manufacturer or wholesaler establish a

place of business in such other state. The provisions of this

subsection relating to metering devices shall not apply to states

which do not require the affixing of tax stamps to packages of

cigarettes before same are offered for sale in such states.

B. Every retailer in this state, except Indian tribal entities

or licenses of Indian tribal entities, as a condition of carrying on

such business, shall secure from the Tax Commission a license and

shall pay therefor a fee of Thirty Dollars ($30.00). Application

for such license, which shall be made upon such forms as prescribed

by the Tax Commission, shall include the following:

1. The applicant’s agreement to the jurisdiction of the Tax

Commission and the courts of this state for the purpose of

enforcement of the provisions of Section 301 et seq. of this title;

2. The applicant’s agreement to abide by the provisions of

Section 301 et seq. of this title and the rules promulgated by the

Tax Commission with reference thereto;

3. The applicant’s agreement that it shall not purchase any

cigarettes for resale from a supplier that does not hold a current

wholesaler’s license issued pursuant to this section; and

4. The applicant’s agreement to sell cigarettes only to

consumers.

Such license, which will be for the ensuing three (3) years,

must at all times be displayed in a conspicuous place so that it can

be seen. Upon expiration of such license, the retailer to whom such

license was issued may obtain a renewal license which shall be valid

for three (3) years. The manner and prorated fee for renewals shall

be prescribed by the Tax Commission. Every person operating under

such license as a retailer and who owns or operates more than one

place of business must secure a license for each place of business.

"Place of business" shall be construed to include places where

orders are received or where cigarettes are sold. A "place of

business" cannot be a location with a physical residential address.

The Tax Commission shall not issue a license for a place of business

with a physical residential address.

C. Every distributing agent shall, as a condition of carrying

on such business, pursuant to written application on a form

prescribed by and in such detailed form as the Tax Commission may

require, annually secure from the Tax Commission a license, and

shall pay therefor an annual fee of One Hundred Dollars ($100.00).

An application shall be filed and a license obtained for each place

of business owned or operated by a distributing agent. The license,

which will be for the ensuing year, shall be consecutively numbered,

Oklahoma Statutes - Title 68. Revenue and Taxation

nonassignable and nontransferable, and shall authorize the storing

and distribution of unstamped cigarettes within this state when such

distribution is made upon interstate orders only.

D. 1. All wholesale, retail, and distributing agent's licenses

shall be nonassignable and nontransferable from one person to

another person. Such licenses may be transferred from one location

to another location after an application has been filed with the Tax

Commission requesting such transfer and after the approval of the

Tax Commission.

2. Wholesale, retail, and distributing agent's licenses shall

be applied for on a form prescribed by the Tax Commission. Any

person operating as a wholesaler, retailer, or distributing agent

must at all times have a valid license which has been issued by the

Tax Commission. If any such person or licensee continues to operate

as such on a license issued by the Tax Commission which has expired,

or operates without ever having obtained from the Tax Commission

such license, such person or licensee shall, after becoming

delinquent for a period in excess of fifteen (15) days, pay to the

Tax Commission, in addition to the annual license fee, a penalty of

twenty-five cents ($0.25) per day on each delinquent license for

each day so operated in excess of fifteen (15) days. The penalty

provided for herein shall not exceed the annual license fee for such

license.

E. No license may be granted, maintained or renewed if any of

the following conditions applies to the applicant. For purposes of

this section, "applicant" includes any combination of persons owning

directly or indirectly, in the aggregate, more than ten percent

(10%) of the ownership interests in the applicant:

1. The applicant owes Five Hundred Dollars ($500.00) or more in

delinquent cigarette taxes;

2. The applicant had a cigarette manufacturer, wholesaler,

retailer or distributor license revoked by the Tax Commission within

the past two (2) years;

3. The applicant has been convicted of a crime relating to

stolen or counterfeit cigarettes, or receiving stolen or counterfeit

cigarettes or has been convicted of or has entered a plea of guilty

or nolo contendere to any felony;

4. If the applicant is a cigarette manufacturer, the applicant

is neither:

a.

a participating manufacturer as defined in Section II

(jj) of the Master Settlement Agreement as defined in

Section 600.22 of Title 37 of the Oklahoma Statutes,

nor

b.

in full compliance with the provisions of paragraph 2

of subsection A of Section 600.23 of Title 37 of the

Oklahoma Statutes;

Oklahoma Statutes - Title 68. Revenue and Taxation

5. If the applicant is a cigarette manufacturer, if any

cigarette imported by such applicant is imported into the United

States in violation of 19 U.S.C., Section 1681a; or

6. If the applicant is a cigarette manufacturer, if any

cigarette imported or manufactured by the applicant does not fully

comply with the Federal Cigarette Labeling and Advertising Act, 15

U.S.C., Section 1331 et seq.

F. No person or entity licensed pursuant to the provisions of

this section shall purchase cigarettes from or sell cigarettes to a

person or entity required to obtain a license unless such person or

entity has obtained such license.

G. No person licensed as a retailer in this state shall:

1. Sell any cigarettes to any other person licensed as a

retailer in this state unless such sale is for the purpose of moving

inventory between stores which are part of the same company; or

2. Purchase any cigarettes from any person or entity other than

a wholesaler licensed pursuant to Section 301 et seq. of this title.

H. In addition to any civil or criminal penalty provided by

law, upon a finding that a licensee has violated any provision of

Section 301 et seq. of this title, the Tax Commission may revoke or

suspend the license or licenses of the licensee pursuant to the

procedures applicable to revocation of a license set forth in

Section 316 of this title.

I. The Tax Commission shall create and maintain a web site

setting forth all current valid licenses and the identity of

licensees holding such licenses, and shall update the site no less

frequently than once per month.

Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965. Amended

by Laws 1988, c. 47, § 14, operative July 1, 1988; Laws 1991, c.

342, § 10, emerg. eff. June 15, 1991; Laws 1994, c. 278, § 8, eff.

Sept. 1, 1994; Laws 1995, c. 1, § 24, emerg. eff. March 2, 1995;

Laws 2003, c. 475, § 2, eff. Nov. 1, 2003; Laws 2005, c. 479, § 6,

eff. July 1, 2005; Laws 2009, c. 434, § 2, eff. Jan. 1, 2010; Laws

2023, c. 285, § 1, eff. July 1, 2023.

NOTE: Laws 1994, c. 258, § 6 repealed by Laws 1995, c. 1, § 40,

emerg. eff. March 2, 1995.