KRS 138.874: Taxable activity prohibited unless tax paid -- Purchase of tax indicia.

(1) Except as provided in KRS 138.870 to 138.889, no offender shall engage in this

state in a taxable activity unless the tax imposed pursuant to KRS 138.872 has been

paid as evidenced by the affixing of a tax stamp, label, or other tax indicia to the

marijuana or controlled substance as prescribed by the Department of Revenue. The

tax shall be due and payable immediately upon the occurrence of the taxable activity

in this state. If an offender engages in a taxable activity in this state involving

marijuana or a controlled substance on which a tax stamp, label, or other tax indicia

evidencing payment of the tax imposed pursuant to KRS 138.872 has not already

been affixed, the offender shall immediately permanently affix the required tax

stamp, label, or other tax indicia.

(2) Tax stamps, labels, or other tax indicia required to be affixed to marijuana or

controlled substances shall be purchased from the Department of Revenue. The

purchaser shall pay one hundred percent (100%) of the face value for each tax

stamp, label, or other tax indicia at the time of the purchase. The Department of

Revenue shall maintain an inventory of tax stamps, labels, or other tax indicia in

denominations it deems necessary to facilitate compliance by taxpayers with the

provisions of th is section. No purchaser of tax stamps, labels, or other tax indicia

pursuant to this section shall be required to give his name, address, or otherwise

identify himself to the Department of Revenue.

(3) Each tax stamp, label, or other tax indicia shall be used only once and shall expire

one (1) year after issuance by the Department of Revenue to the original purchaser

thereof.