Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 15 - Cigarette Tax
Part 1 - Cigarette Tax (280-RICR-20-15-1)
Section 280-RICR-20-15-1.12 - Physical Inventories of Cigarettes and Indicia

A. Authorized representatives of the Division of Taxation may at unannounced times, secure inventories of cigarettes, and of indicia as the first step to conducting a complete audit to the dealer's or distributor's cigarette transactions and compliance with the cigarette tax laws by all licensees.

B. A representative of the dealer or distributor must be present with the Division of Taxation representative during the physical inventory, and upon completion of the inventory, the representative of the dealer or distributor must sign the inventory sheets and the report form attesting to their accuracy.

C. Loans and Transfers of Cigarette Tax Indicia: All licensed distributors purchasing indicia must maintain custody of the indicia. Indicia cannot be loaned, sold, or transferred to another licensee under any conditions whatsoever.

D. Loans and Transfers of Unstamped Cigarettes: Loans and transfers of unstamped cigarettes must be supported by invoices and must be made on an in-out basis. The recipient must show the cigarettes received on Schedule A of the distributor's monthly report and the transferring licensee must show the transaction on Schedule D of its distributor's monthly report. This procedure is mandatory even though the entire transaction is completed in one day.