{"data":{"id":"us-ky/krs-365.270","jurisdiction":"us-ky","citation":"KRS 365.270","heading":"Definitions for KRS 365.260 to 365.380.","body":"As used in KRS 365.260 to 365.380, unless the context otherwise requires:\n(1) \"Person\" means and includes any individual, firm, association, company,\npartnership, corporation, joint stock company, club, agency, syndicate, the\nCommonwealth of Kentucky and a ny municipal corporation or other political\nsubdivision of this state, trust, receiver, trustee, fiduciary, or conservator.\n(2) \"Commissioner\" means the commissioner of the Department of Revenue of the\nCommonwealth of Kentucky.\n(3) \"Department\" means the Department of Revenue.\n(4) \"Cigarettes\" means and includes any roll for smoking made wholly or in part of\ntobacco, irrespective of size or shape and whether or not the tobacco is flavored,\nadulterated, or mixed with any other ingredient, the wrapper or cove r of which is\nmade of paper or any other substance or material, excepting tobacco.\n(5) \"Wholesaler\" means any person who sells cigarettes at wholesale or distributes\ncigarettes to be sold at retail, and includes any manufacturer, distributor, jobber,\nsubjobber as defined in KRS 138.130, broker, agent, or other person, whether or not\nenumerated in this subsection, who sells or distributes cigarettes.\n(6) \"Retailer\" means and includes any person who sells cigarettes in this state to a\nconsumer or to any person for any purpose other than resale.\n(7) \"Sale\" or \"sell\" means any transfer for consideration or gift.\n(8) \"Sell at wholesale,\" \"sale at wholesale,\" and \"wholesale sales\" means and includes\nany sale made in the ordinary course of trade or usual conduct of  the wholesaler's\nbusiness to a retailer for the purpose of resale.\n(9) \"Sell at retail,\" \"sale at retail,\" or \"retail sales\" means and includes any sale for\nconsumption or use made in the ordinary course of trade or usual conduct of the\nseller's business.\n(10) \"Basic cost of cigarettes\" means the invoice cost of cigarettes to the wholesaler or\nretailer, as the case may be, less all trade discounts, except customary cash\ndiscounts, plus the full face value of any stamps or any tax which may be required\nby any cigarette tax act of this state or political subdivision thereof, now in effect or\nhereafter enacted, if not already included in the invoice cost of the cigarettes to the\nwholesaler or retailer, as the case may be.\n(11) (a) \"Cost to wholesaler\" means th e basic cost of the cigarettes involved to the\nwholesaler plus the cost of doing cigarette business by the wholesaler. In\ndetermining the cost of doing cigarette business by the wholesaler, the cost of\ndoing business by the wholesaler shall first be determ ined by applying the\nstandards and methods of accounting regularly employed by him, and includes\nlabor costs, including salaries of executives and officers, rent, depreciation,\nselling costs, maintenance of equipment, delivery costs, all types of licenses,\ntaxes, insurance, and advertising. The cost of doing business by the wholesaler\nshall then be multiplied by the fraction obtained through dividing the\nwholesaler's cigarette sales for the preceding six (6) months by the\nwholesaler's total sales for the same period and the product thereof shall be the\ncost of doing cigarette business.\n(b) In the absence of proof of a lesser or higher cost of doing cigarette business by\nthe wholesaler making the sal e, the cost of doing cigarette business by the\nwholesaler shall be presumed to be two percent (2%) of the basic cost of the\ncigarettes to the wholesale dealer, plus cartage to the retail outlet, if performed\nor paid for by the wholesale dealer. Cartage cos t, in the absence of proof of a\nlesser or higher cost, shall be presumed to be three -fourths of one percent\n(0.75%) of the basic cost of the cigarettes to the wholesaler.\n(12) (a) \"Cost to the retailer\" means the basic cost of cigarettes involved to the re tailer\nplus the cost of doing cigarette business by the retailer. In determining the cost\nof doing cigarette business by the retailer, the cost of doing business by the\nretailer shall first be determined by applying the standards and methods of\naccounting regularly employed by him and includes labor, including salaries\nof executives and officers, rent, depreciation, selling costs, maintenance of\nequipment, delivery costs, all types of licenses, taxes, insurance, and\nadvertising. The cost of doing business b y the retailer shall then be multiplied\nby the fraction obtained through dividing the retailer's cigarette sales for the\npreceding six (6) months by the retailer's total sales for the same period and\nthe product thereof shall be the cost of doing cigarette business.\n(b) In the absence of proof of a lesser or higher cost of doing cigarette business by\nthe retailer making the sale, the cost of doing cigarette business by the retailer\nshall be presumed to be eight percent (8%) of the basic cost of cigarettes to the\nretailer.","path":["KRS Chapter 365"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47343","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:01Z","sha256":"79797cf74bc6a2ef975e087ff4e0eab995f45e43499f4d6b1c30ae8df6af102c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-365.265","next":"us-ky/krs-365.280"},"notice":"GroundRules: Original legal text. Not legal advice."}