License -- Application of part -- Fee -- Bond -- Exceptions.

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  • (1) It is unlawful for any person in this state to manufacture, import, distribute, barter, sell, exchange, or offer cigarettes for sale without first having obtained a license issued by the commission under Section 59-14-202.
  • (2) Except for the tax rates described in Subsection 59-14-204(2), this part does not apply to a cigarette produced from a cigarette rolling machine.
  • (3)
    • (a) A license may not be issued for the sale of cigarettes until the applicant has paid a license fee of $30 or a license renewal fee of $20, as appropriate.
    • (b) The fee for reinstatement of a license that has been revoked, suspended, or allowed to expire is $30.
    • (c) Notwithstanding Subsections (3)(a) and (b), the commission may not charge a fee for a license under this section for a retailer, as defined in Section 59-14-102.
  • (4)
    • (a) A license may not be issued until the applicant files a bond with the commission. The commission shall determine the form and the amount of the bond, the minimum amount of which shall be $500. The bond shall be executed by the applicant as principal, with a corporate surety, payable to the state and conditioned upon the faithful performance of all the requirements of this chapter, including the payment of all taxes, penalties, and other obligations.
    • (b) An applicant is not required to post a bond if the applicant:
      • (i) purchases during the license year only products that have the proper state stamp affixed as required by this chapter; and
      • (ii) files an affidavit with the applicant's application attesting to this fact.




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