SB 107-FN – AS AMENDED BY THE SENATE
03/22/06 1508s
2005 SESSION
09/10
SENATE BILL 107-FN
AN ACT relative to the tax on tobacco products other than cigarettes.
This bill clarifies and establishes tax rates for loose tobacco products and other smokeless tobacco products.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/22/06 1508s
05-0950
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Five
AN ACT relative to the tax on tobacco products other than cigarettes.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Tobacco Tax; Definitions. Amend RSA 78:1 by inserting after paragraph XX the following new paragraph:
XXI. “Loose tobacco” means granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco but does not include cigarettes or tobacco purchased for the manufacture of cigarettes by cigarette manufacturers; cavendish; plug and twist tobacco; loose leaf chewing tobaccos; shorts; refuse scraps, clippings, cuttings, and sweepings of tobacco.
2 Tobacco Tax; Tax Imposed on Tobacco Products Other Than Cigarettes. Amend RSA 78:7-c to read as follows:
78:7-c Tax Imposed on Tobacco Products Other Than Cigarettes. A tax upon the retail consumer is hereby imposed on tobacco products other than cigarettes at a rate of 19 percent of the wholesale sales price on loose tobacco products and at the rate of 48 cents per ounce, or fractional part thereof, on all other smokeless products. Such tax shall be assessed on the net weight as listed by the manufacturer; provided, however, that for any product with a listed net weight of less than one ounce, the tax for such product shall be 48 cents. The tax under this section may be rounded to the nearest cent if the commissioner determines that the amount of tax would not thereby be made materially disproportionate. No such tax is imposed on any transactions, the taxation of which by this state is prohibited by the Constitution of the United States.
3 Effective Date. This act shall take effect July 1, 2006.
LBAO
05-0950
Amended 3/30/06
SB 107 FISCAL NOTE
AN ACT relative to the tax on tobacco products other than cigarettes.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill, as amended by the Senate (Amendment #2006-1508s), will have an indeterminable fiscal impact on state unrestricted general fund revenue and state restricted education trust fund revenue in FY 2007 and each year thereafter. There is no fiscal impact on state, county and local expenditures or local and county revenue.
METHODOLOGY:
The Department of Revenue Administration (DRA) states that this bill taxes loose tobacco at 19% of the wholesale sales price and taxes all other smokeless tobacco products at a rate of 48 cents per ounce. The DRA does not have sufficient data for the purposes of estimating the tax impact of these tax changes. The DRA, however, states that these tax changes can be administered within their existing budget.