Okla. Stat. tit. 68, § 68-316

A. Any person, other than a consumer, who shall:

1. Sell, offer for sale or present as a prize or gift

cigarettes without a stamp being then and there affixed to each

individual package;

2. Sell cigarettes in quantities less than an individual

package;

3. Knowingly cancel or mutilate any stamp affixed to any

individual package of cigarettes for the purpose of concealing any

Oklahoma Statutes - Title 68. Revenue and Taxation Page 175

violation of Section 301 et seq. of this title or with any other

fraudulent intent;

4. Use any artful device or deceptive practice to conceal any

violation of Section 301 et seq. of this title;

5. Refuse to surrender to the Oklahoma Tax Commission upon

demand any cigarettes possessed in violation of any provision of

Section 301 et seq. of this title; or

6. Knowingly or intentionally make a first sale of cigarettes

without a stamp being then and there affixed to each individual

package; shall be fined not more than Two Hundred Dollars ($200.00),

where specific penalties are not otherwise provided.

B. Any consumer, who shall:

1. Sell, offer for sale or present as a prize or gift

cigarettes without a stamp being then and there affixed to each

individual package;

2. Knowingly consume, use or smoke any cigarettes upon which a

tax is required to be paid without a stamp being affixed upon each

individual package;

3. Knowingly cancel or mutilate any stamp affixed to any

individual package of cigarettes for the purpose of concealing any

violation of the Cigarette and Tobacco Products Tax Codes or with

any other fraudulent intent;

4. Use any artful device or deceptive practice to conceal any

violation of the Cigarette and Tobacco Products Tax Codes; or

5. Refuse to surrender to the Tax Commission upon demand any

cigarettes possessed in violation of any provision of Section 301 et

seq. of this title,

shall be fined not more than Two Hundred Dollars ($200.00), where

specific penalties are not otherwise provided.

C. Any wholesaler, retailer or distributing agent who shall

intentionally:

1. Commit any of the acts specifically enumerated in subsection

A of this section, where such acts are applicable to such person;

2. Sell any cigarettes upon which tax is required to be paid by

Section 301 et seq. of this title without at the time of making such

sale having a valid license;

3. Make a first sale of cigarettes without at the time of first

sale having a license posted so as to be easily seen by the public;

or

4. Fail to deliver an invoice required by law to a purchaser of

cigarettes;

shall be punished by an administrative fine of not more than Ten

Thousand Dollars ($10,000.00) for the first offense, and not more

than Twenty-five Thousand Dollars ($25,000.00) for the second

offense, where specific penalties are not otherwise provided.

D. Any distributing agent who shall:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 176

1. Commit any of the acts specifically enumerated in

subsections A and B of this section where such provisions are

applicable to such distributing agent; or

2. Store any unstamped cigarettes in the state or deliver or

distribute any unstamped cigarettes within this state, without at

the time of storage or delivery having a valid license posted so as

to be easily seen by the public;

shall be punished by an administrative fine of not more than Ten

Thousand Dollars ($10,000.00) for the first offense, and not more

than Twenty-five Thousand Dollars ($25,000.00) for the second

offense.

E. Any retailer violating the provisions of Section 301 et seq.

of this title may:

1. For a first offense, be punished by an administrative fine

of not more than One Hundred Dollars ($100.00);

2. For a second offense, be punished by an administrative fine

of not more than One Thousand Dollars ($1,000.00); and

3. For a third or subsequent offense, be punished by an

administrative fine of not more than Five Thousand Dollars

($5,000.00).
ction 301 et seq.

of this title may:

1. For a first offense, be punished by an administrative fine

of not more than One Hundred Dollars ($100.00);

2. For a second offense, be punished by an administrative fine

of not more than One Thousand Dollars ($1,000.00); and

3. For a third or subsequent offense, be punished by an

administrative fine of not more than Five Thousand Dollars

($5,000.00).

F. Any wholesaler violating the provisions of Section 305.1 of

this title shall:

1. For a first offense, be punished by an administrative fine

of not more than Five Thousand Dollars ($5,000.00); and

2. For a second or subsequent offense, be punished by an

administrative fine of not more than Twenty Thousand Dollars

($20,000.00).

Administrative fines collected pursuant to the provisions of

this subsection shall be deposited to the revolving fund created in

Section 305.2 of this title.

G. The Tax Commission shall immediately revoke the license of a

person punished for a violation pursuant to the provisions of

paragraph 3 of subsection E of this section or a person punished for

a violation pursuant to the provisions of subsection F of this

section. A person whose license is so revoked shall not be eligible

to receive another license pursuant to the provisions of Section 301

et seq. of this title for a period of ten (10) years.

H. Whoever, with intent to defraud Oklahoma:

1. Fails to keep or make any record, return, report, or

inventory, or keeps or makes any false or fraudulent record, return,

report, or inventory, required by Section 301 et seq. of this title

or rules promulgated thereunder;

2. Refuses to pay any tax imposed by Section 301 et seq. of

this title, or attempts in any manner to evade or defeat the tax or

the payment thereof; or

3. Fails to comply with any requirement of Section 301 et seq.

of this title;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 177

shall, for each such offense, be punished with an administrative

fine of not more than Ten Thousand Dollars ($10,000.00).

I. Whoever knowingly omits, neglects, or refuses to comply with

any duty imposed upon the person by Section 301 et seq. of this

title, or to do, or cause to be done, any of the things required by

Section 301 et seq. of this title, or does anything prohibited by

Section 301 et seq. of this title, shall, in addition to any other

penalty provided in Section 301 et seq. of this title, pay an

administrative fine of One Thousand Dollars ($1,000.00).

J. Whoever fails to pay any tax imposed by Section 301 et seq.

of this title at the time prescribed by law or rules, shall, in

addition to any other penalty provided in Section 301 et seq. of

this title, be liable to a penalty of five hundred percent (500%) of

the tax due but unpaid.

K. 1. All cigarettes which are held for sale or distribution

within the borders of Oklahoma, in violation of the requirements of

Section 301 et seq. of this title, and the machinery used to

manufacture counterfeit cigarettes shall be forfeited to Oklahoma.

All cigarettes and machinery forfeited to Oklahoma under this

paragraph shall be destroyed.

2. All fixtures, equipment, and all other materials and

personal property on the premises of any distributor or retailer

who, with intent to defraud the state, fails to keep or make any

record, return, report, or inventory; keeps or makes any false or

fraudulent record, return, report, or inventory required by Section

301 et seq. of this title; refuses to pay any tax imposed by Section

301 et seq. of this title; or attempts in any manner to evade or

defeat the requirements of Section 301 et seq. of this title shall

be forfeited to Oklahoma.

L. Notwithstanding any other provision of law, the sale or

possession for sale of counterfeit cigarettes, or the sale or

possession for sale of counterfeit cigarettes by a manufacturer,

distributor, or retailer shall result in the seizure of the product
is title; or attempts in any manner to evade or

defeat the requirements of Section 301 et seq. of this title shall

be forfeited to Oklahoma.

L. Notwithstanding any other provision of law, the sale or

possession for sale of counterfeit cigarettes, or the sale or

possession for sale of counterfeit cigarettes by a manufacturer,

distributor, or retailer shall result in the seizure of the product

and related machinery by the Tax Commission or any law enforcement

agency and shall be punishable as follows:

1. A first violation with a total quantity of less than two

cartons of cigarettes or the equivalent amount of other cigarettes

shall be punishable by an administrative fine not to exceed Ten

Thousand Dollars ($10,000.00);

2. A subsequent violation with a total quantity of less than

two cartons of cigarettes, or the equivalent amount of other

cigarettes shall be punishable by an administrative fine not to

exceed Twenty-five Thousand Dollars ($25,000.00), and shall also

result in the revocation by the Tax Commission of the manufacturer,

wholesaler, or retailer license;

3. A first violation with a total quantity of more than two

cartons of cigarettes, or the equivalent amount of other cigarettes,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 178

shall be punishable by an administrative fine not to exceed Twenty-

five Thousand Dollars ($25,000.00); and

4. A subsequent violation with a quantity of two cartons of

cigarettes or more, or the equivalent amount of other cigarettes

shall be punishable by an administrative fine not to exceed Fifty

Thousand Dollars ($50,000.00), and shall also result in the

revocation by the Tax Commission of the manufacturer, wholesaler, or

retailer license.

For the purposes of this section, “counterfeit cigarettes”

includes cigarettes that have false manufacturing labels or tobacco

product packs without tax stamps or the applicable tax stamp or with

counterfeit tax stamps or a combination thereof. Any counterfeit

cigarette seized by the Tax Commission shall be destroyed.

M. The Tax Commission shall immediately revoke the license of a

person punished for a violation pursuant to the provisions of

subsection H of this section. A person whose license is so revoked

shall not be eligible to receive another license for a period of

five (5) years.