Vape Vending Machines Sales Laws and Regulations in Kentucky

Thinking of Launching a Vape Vending Business in Kentucky?

Disclaimer: This page is intended for informational purposes only and should not be considered legal advice. Consult official Kentucky government resources for the most current regulations or consult your attorney.

Kentucky is a favorable state in terms of owning and operating vape vending machines and nicotine pouch machines.  Machines can be placed as long as they are in bars or taverns or places where minors are not permitted.  They may also be placed as long as they are in line-of-sight of the cashier.   

However, there are current legal debates and litigation over product-approval.  Please consult your attorney for more information.  

Considering becoming a vape vending machine host in Kentucky? Familiarize yourself with the current state laws to ensure compliance and successful operations. Here's a quick breakdown of current state regulations for vapor products, vape machines, and sales.VapeTMWhether you're a retailer, entrepreneur, or operator, understanding these regulations is essential not only for compliance but also for safeguarding your investment. Below is a detailed guide that breaks down the current rules, requirements, and best practices for operating a vape vending machine in Kentucky. 103 KAR 27:180. Vending machines.
RELATES TO: KRS 139.010, 139.240, 139.260, 139.470, 139.485, 139.720
STATUTORY AUTHORITY: KRS 131.130(1)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 131.130(1) authorizes the Department of Revenue to promulgate administrative regulations to administer and enforce Kentucky's tax laws. This administrative regulation establishes the requirements when interpreting
the sales and use tax law as it applies to sales of tangible personal property through vending
machines.

103 KAR 27:180. Vending machines:
Section 1. Persons who own vending machines which dispense tangible personal property, or operators of the machines under lease or rental agreements, shall complete a "Kentucky Tax Registration Application", Revenue form 10A100, to obtain a Kentucky Retail Sales and Use Tax permit to engage in the business of selling tangible personal property and shall report and pay to the department the tax upon the gross receipts from sales made through the machines by utilizing Revenue Form 51A102, "Sales and Use Tax Return". One (1) permit shall be sufficient for all machines of one (1) owner or operator. 
Section 2. The owners or operators of vending machines shall be responsible for reporting and paying the tax on the total gross receipts even though the owner or operator of the place in which the machines are located receives a share of the gross receipts under a commission or concession contract. In reporting and paying the tax, the owner or operator shall be deemed the agent of the operator or owner of the place of business in which the machine is located to the extent of commissions due the latter. Gross receipts from sales of tangible personal property made in portions of fifty (50) cents or less through coin operated bulk vending machines where unsorted merchandise is dispensed in approximately equal portions are exempt from the sales and use tax (KRS 139.470(6)). 
Section 3. A statement in the following form must be affixed upon each vending machine in a conspicuous place: "This vending machine is owned (operated) by _______ Owner (Operator), __________ Place of Business of Owner (Operator), who holds Permit No._____, issued pursuant to the Sales and Use Tax Law."

 

LOUISVILLE METRO / JEFFERSON COUNTY SPECIFICS

1. Local Retail Licensing

While the Commonwealth of Kentucky does not require a retail license for vapor product sales outside of vending operations, Louisville Metro Government and Jefferson County have implemented their own local requirements for tobacco and vapor product retailers.

  • A Tobacco and Nicotine Product Retail License is required within Louisville Metro.
  • This includes vape products, nicotine pouches, and alternative nicotine items.
  • Businesses operating vending machines for these products within Louisville must also comply.

This local requirement originates from Louisville Metro Ordinance No. O-424-21, codified under LMCO § 90.15 et seq., which mandates:

“Any person, partnership, or corporation selling tobacco products, including vapor products, shall apply for a retail license annually. This includes sales through vending machines.”

Contact for licensing:
Louisville Metro Department of Public Health and Wellness
Environmental Health Tobacco Retail Licensing Division
Phone: (502) 574-6650
Website: https://louisvilleky.gov

LICENSING SUMMARY FOR KENTUCKY (STATE + LOCAL)

Jurisdiction Type of License Applies To Required For Vending?
State (KY) Vending Machine Operator License Vending machine operators of vape products ✅ Yes
State (KY) None Retail vape/nicotine pouch sales (except vending) ❌ Not required statewide
Louisville Metro / Jefferson County Tobacco/Nicotine Retail License Any retail sale including vending ✅ Required locally

PLACEMENT RESTRICTIONS RECAP

Kentucky requires that any vape vending machine be:

  • In line-of-sight of the cashier, unless:
    • Located in a bar or tavern where minors are not permitted
    • Located in a factory setting
      Ky. Rev. Stat. § 438.315.

Additional local rules (e.g., spacing from schools, warning signage) may apply within Louisville, and these must be confirmed directly with Louisville Metro Public Health.

TAXATION: EXCISE + SALES

Excise Tax (State Level):

Product Type Tax Amount
Closed cartridges $1.50 per cartridge
Open systems 15% of actual distributor price

Statutory basis: Ky. Rev. Stat. Ann. § 138.140(2)(a)(4–5).

Sales Tax:

  • Kentucky applies standard state sales tax (6%) on vapor products unless exempted by special designation.
  • Vending machine sales are considered retail sales and must be reported and remitted accordingly via the Kentucky Department of Revenue.

STATE & LOCAL AUTHORITIES TO CONTACT

Agency Jurisdiction Area of Oversight Contact
KY Dept. of Revenue Statewide Vending machine operator licensing,
excise tax		 https://revenue.ky.gov
Louisville Metro Dept. of Public Health & Wellness Local Tobacco/vape retail licensing,
compliance inspections		 https://louisvilleky.gov

COMPLIANCE TIPS

  • Maintain visible tax stamps on all products sold through vending machines.
  • Ensure age-verification signage is present at all retail or vending locations.
  • Maintain updated licensing and notify regulators of any change of location.
  • Local Louisville license renewals are annual, and failure to renew may result in penalties or license revocation.

Disclaimer: This page is intended for informational purposes only and should not be considered legal advice. Consult official Kentucky government resources for the most current regulations or consult your attorney.

 

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