NAC370.030. Conditions for use of stamping machine by dealer.

     1. The privilege of using a stamping machine to apply cigarette revenue stamps will be granted to licensed wholesale cigarette dealers upon written request to the Department subject to compliance with the following terms:

     (a) Cigarette revenue stamps applied by machines must be approved by the Department with the security codes provided by the manufacturer.

     (b) Only cigarettes bearing clear and legible cigarette revenue stamps may be distributed by wholesale dealers.

     (c) Cigarette revenue stamps may only be applied by machines owned or leased by the licensed wholesale dealer for which a security code has been provided to the Department.

     (d) All cigarette revenue stamps applied upon packages must be of a special type devised and specified for the machines by the manufacturer. All cigarette revenue stamps must be applied on the bottom of the original package.

     (e) The design of the cigarette revenue stamp must be that particular design approved by the Department.

     (f) All wholesale dealers permitted to use stamping machines must take every reasonable precaution to prevent the theft of, unauthorized use of or tampering with the machines.

     (g) All repairs to the machine must be made by an authorized representative of the manufacturer.

     (h) All equipment must be serviced and cleaned according to the instructions issued by the manufacturer of the machine.

     (i) All cigarette revenue stamps must be purchased from an authorized agent or representative of the Department.

     2. Upon the failure of any licensed wholesale dealer to fully comply with subsection 1, the permission to use the machines will be summarily withdrawn and the dealer will be required to affix water decal stamps until such time as he or she satisfies the Department that the provisions of subsection 1 have been met and will be fully complied with in the future.

     [Tax Comm’n, Cigarette Tax Reg. part No. 4, eff. 4-24-69; A by Dep’t of Taxation, 1-1-76]—(NAC A by Tax Comm’n, 7-18-88)