Section 45IAC8.1-1-3. Exemption; sales to United States government

   (a) A distributor does not incur tax liability with respect to sales or other dispositions of cigarettes to the United States government, its agencies and instrumentalities and need not affix tax stamps to individual packages of cigarettes so sold or otherwise disposed of.

  (b) Distributors do incur tax liability with respect to sales or other dispositions of cigarettes in this state to individuals, private stores, or concessionaires located upon federal areas and engaged in the business of selling cigarettes. In these situations, the distributor must affix tax stamps of proper denomination to each individual package of cigarettes before delivery thereof pursuant to a sale or other disposition. (Department of State Revenue; Reg. 6-7-1-1(030); filed Aug. 4, 1982, 3:02 p.m.: 5 IR 1800; filed Jan 12, 2015, 12:14 p.m.: 20150211-IR-045140146FRA)