Bill Text - HB488 (2013)

Changing the definition of "cigarette" under the tobacco tax to match the definition of "cigarette" under the Master Settlement Agreement.


Revision: April 19, 2013, midnight

HB 488-FN – AS AMENDED BY THE SENATE

6Mar2013… 0339h

04/18/13 1213s

2013 SESSION

13-0577

09/10

HOUSE BILL 488-FN

AN ACT changing the definition of “cigarette” under the tobacco tax to match the definition of “cigarette” under the Master Settlement Agreement.

SPONSORS: Rep. Almy, Graf 13

COMMITTEE: Ways and Means

ANALYSIS

This bill changes the definition of “cigarette” under the tobacco tax to match the definition of “cigarette” under the Master Settlement Agreement.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

6Mar2013… 0339h

04/18/13 1213s

13-0577

09/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Thirteen

AN ACT changing the definition of “cigarette” under the tobacco tax to match the definition of “cigarette” under the Master Settlement Agreement.

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

1 Tobacco Tax; Definition of Cigarette. RSA 78:1, XVII is repealed and reenacted to read as follows:

XVII.(a) In conformity with RSA 541-C:2, IV, “cigarette” means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use, and consists of or contains:

(1) Any roll of tobacco wrapped in paper or in any substance not containing tobacco; or

(2) Tobacco, in any form, that is functional in the product, which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette; or

(3) Any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in subparagraph (a)(1).

(b) The term “cigarette” includes “roll-your-own” (i.e., any tobacco which, because of its appearance, type, packaging, or labeling is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes). For purposes of this definition of “cigarette,” 0.09 ounces of “roll-your-own” tobacco shall constitute one individual “cigarette.”

2 Effective Date. This act shall take effect upon its passage.

LBAO

13-0577

Amended 03/14/13

HB 488 FISCAL NOTE

AN ACT changing the definition of “cigarette” under the tobacco tax to match the definition of “cigarette” under the Master Settlement Agreement.

FISCAL IMPACT:

    The Department of Revenue Administration states this bill, as amended by the House (Amendment #2013-0339h), may increase state revenue by an indeterminable amount in FY 2013 and each year thereafter. There will be no fiscal impact on state, county, and local expenditures, or county and local expenditures.

METHODOLOGY:

    The Department of Revenue Administration states this bill would change the definition of cigarette under RSA 78:1, XVII if RSA 541-C:2, IV, relative to the Master Settlement Agreement. The Department states if the definition change goes into effect, tobacco, in any form, that is functional in the product, which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette, and accordingly would be taxed at the cigarette rate ($1.68). The Department states it is unable to estimate the possible increase in revenue from this bill because there is currently no inventory of tobacco products other than cigarettes reported to the Department.