HB1479 (2008) Detail

Relative to sale of tobacco products and the appeals process concerning the seizure of illegal tobacco products.


HB 1479-FN – AS INTRODUCED

2008 SESSION

08-2492

09/10

HOUSE BILL 1479-FN

AN ACT relative to the sale of tobacco products and the appeals process concerning the seizure of illegal tobacco products.

SPONSORS: Rep. Almy, Graf 11; Rep. Hatch, Coos 3; Rep. Hamm, Merr 4

COMMITTEE: Commerce

ANALYSIS

This bill allows the department of revenue administration to collect the tobacco tax directly from consumers who purchase unstamped tobacco products.

The bill also clarifies the appeals procedure for illegal tobacco seizure, forfeiture, or destruction orders.

This bill was requested by the department of revenue administration.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

08-2492

09/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eight

AN ACT relative to the sale of tobacco products and the appeals process concerning the seizure of illegal tobacco products.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Nature of the Tobacco Tax. Amend RSA 78:7-a to read as follows:

78:7-a Nature of Tax. All taxes upon tobacco products under this chapter are declared to be a direct tax upon the consumer at retail and shall conclusively be presumed to be pre-collected for the purpose of convenience and facility only. Accordingly, the commissioner may collect the tax directly from consumers who purchase unstamped tobacco products.

2 Unstamped Tobacco Products. Amend RSA 78:14 to read as follows:

78:14 Unstamped Tobacco Products. No sub-jobber, vending machine operator or retailer, and no other person who is not licensed under the provisions of this chapter, shall sell, offer for sale, display for sale, ship, store, import, transport, carry or possess with or without intent to sell, any tobacco products not properly stamped under RSA 78:12 or 78:13, except as provided in RSA 78:12, II. This section shall not prevent any unlicensed person able to purchase unstamped tobacco products by statute from possessing such products for his or her own use or consumption, if the tax otherwise due under this chapter is paid by the unlicensed person to the department directly. The provisions of this section shall not apply to common carriers transporting unstamped tobacco products. Any person who violates the provisions of this section shall be guilty of a felony.

3 Seizure, Forfeiture, and Destruction of Illegal Tobacco Products; Appeals Procedure. Amend RSA 78:16 to read as follows:

78:16 Seizure, Forfeiture, and Destruction of Illegal Tobacco Products.

I. Unless the tobacco products are subject to the exemption under RSA 78:12, II, tobacco products found at any place in this state without the necessary stamps affixed to them, unless they shall be in the possession of a licensed manufacturer or wholesaler, or unless they shall be in the course of transit by common carrier from a bonded warehouse and consigned to a licensed manufacturer, wholesaler or anyone exempted by statute, shall be declared to be contraband goods and subject to forfeiture to the state.

II. The commissioner, the commissioner's authorized agents, sheriffs, deputy sheriffs, and police officers shall have the power to seize such tobacco products in the manner provided under RSA 617 or by immediately seizing the contraband tobacco products and providing the owner with the opportunity to appeal the seizure through an administrative proceeding before the department. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to the seizure and destruction of contraband tobacco products and the [appeals] hearings procedure.

4 New Section; Appeals of License Revocation or Suspension Orders and Tobacco Seizure Orders. Amend RSA 78 by inserting after section 31 the following new section:

78:31-a Appeals of License Revocation or Suspension Orders and Seizure, Forfeiture, or Destruction of Illegal Tobacco Products Orders.

I. This section shall apply only to appeals of final orders regarding license revocation or suspension under RSA 78:6 and final orders regarding seizure, forfeiture, and destruction of illegal tobacco products under RSA 78:16. Proceedings regarding assessments of tax, penalties, and interest and requests for refund of tax, penalties, and interest shall be taken under RSA 21-J:28-b.

II. Within 30 days of the notice of a final order by the commissioner, the owner or licensee, as applicable, may appeal such order by written application to the board of tax and land appeals. The board of tax and land appeals shall hear the appeal de novo.

5 Effective Date. This act shall take effect 60 days after its passage.

LBAO

08-2492

11/28/07

HB 1479-FN - FISCAL NOTE

AN ACT relative to the sale of tobacco products and the appeals process concerning the seizure of illegal tobacco products.

FISCAL IMPACT:

      The Department of Revenue Administration states this bill may increase state general fund and Education Trust Fund revenue by an indeterminable amount in FY 2008 and each year thereafter. There will be no fiscal impact on county and local revenue or state, county, and local expenditures.

METHODOLOGY:

    The Department of Revenue Administration states this bill will allow the Department to collect the tobacco tax directly from consumers who purchase unstamped tobacco products as well as clarifies the appeals procedure for license revocation or suspension orders and seizure, forfeiture, or destruction of illegal tobacco products. The Department states it would be able to absorb within its budget any costs of administering the changes contained in this bill. The Department is not able to estimate how much unpaid tax would be collected, however any tax collected would increase revenue.