How to Register
The Department of Revenue administers Tobacco Taxes on cigarettes, other tobacco products, snuff, and vapor products. Cigarette and Tobacco Licenses are obtained online through the Kentucky One Stop Business Portal.
House Bill 659 - Cigarette Tax Compensation (Effective August 1, 2022)
During the 2022 Legislative Session, KRS 138.146 was amended to increase the compensation rate for licensed wholesalers for the purchase of cigarette tax stamps to 1.5 cents per pack of 20 cigarettes equal to $450 on a roll of 30,000 stamps.
House Bill 249 - Open Vaping Systems (Effective July 1, 2021)
During the 2021 Legislative Session, KRS 138.140 was amended to modify the taxation of open vaping systems. When the components of an open vaping system are sold separately without the liquid solution, the open vaping system tax rate is not applicable. However, vaping kit sales that include the liquid solution or liquid solution sold separately continues to be subject to the open vaping systems tax rate of fifteen percent (15%).
Effective March 27, 2021: Prevent All Cigarette Trafficking (PACT) Act Reporting Requirements for Electronic Nicotine Delivery Systems (ENDS)
If you sell, transfer, or ship for-profit Electronic Nicotine Delivery Systems (ENDS) into Kentucky from outside the state, you are required to register and file monthly reports with the Department of Revenue.
Also, if you sell, transfer, or ship for-profit cigarettes, smokeless tobacco products, or ENDS in interstate commerce, you must register and file monthly reports with the tobacco tax administrator of the state where the shipment is delivered. You must also register with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Current Kentucky filers, who are now filing and reporting on sales of vapor products, should not be affected by this new federal requirement as the Kentucky electronic filing format already captures all data needed at this time. These Kentucky filers reporting all ENDS products on their tax returns are already meeting all of their Kentucky state filing requirements.
However, if you need registration information, please contact the Tobacco Tax Section at (502) 564-6823 (Option 2) to begin the initial process. You may also review this page to find additional information on the electronic registration and filing requirements.
What are ENDS?
ENDS are defined as any electronic device that delivers nicotine, flavor, or any other substance to the user inhaling from the device. ENDS include:
- An eCigarette, eHookah, eCigar, vape pen, advanced refillable personal vaporizer, electronic pipe; and
- Any component, liquid, part, or accessory of an ENDS device, without regard to whether the component, liquid, part, or accessory is sold separately from the device.
The federal Prevent All Cigarette Trafficking (PACT) Act became effective on June 29, 2010. The PACT Act amends the federal Jenkins Act (15 U.S.C. section 375-378). The Preventing Online Sales of E-Cigarettes to Children Act (2021 Omnibus Appropriations Bill H.R. 133 section 601) amends the definition of cigarette to include electronic nicotine delivery systems (ENDS).