Arizona Revised Statutes Title 42. Taxation § 42-3455. Cigarette tax stamps; description and characteristics; use by licensed distributors; affixation standards; metering

A. The department shall prescribe by rule or procedure the method and manner in which tax stamps are to be affixed to cigarettes and may provide for the cancellation of stamps. In addition to any specifications provided under this article, the stamps shall also meet the requirements provided in § 42-3006.

B. Each roll or sheet of stamps for cigarettes that are required under this chapter shall have a separate serial number that is legible at the point of sale to the distributor. The department shall use the serial number to keep records of each distributor who purchases each roll or sheet of stamps. The department shall not sell stamps that have the same serial number to more than one distributor. The department may sell a partial roll or sheet of stamps to a distributor and shall retain the remainder of the roll or sheet to subsequently sell to the same distributor or shall destroy the remainder of the roll or sheet.

C. Only licensed distributors may purchase, obtain or affix cigarette stamps. Distributors shall not sell or provide stamps to any other distributor or person. When affixing cigarette stamps to cigarettes, distributors shall ensure that the affixation method that is used maintains the legibility of the serial numbers on the stamps.

D. If, during compliance inspections of a distributor or retailer, the department discovers cigarette packages that appear not to be stamped in accordance with subsection C of this section and if the distributor or retailer has substantially complied with the other provisions of this chapter, the following shall be considered a properly stamped cigarette package:

E. The department may authorize the use of a metering machine. If the department authorizes the use of a metering machine, the department shall assign a unique meter impression number to each distributor and ensure that the impression is legible at the point of sale. The department shall keep records that indicate the assigned meter impression number for each distributor.