HB333 (2017) Detail

Removing the exemption for premium cigars from the tobacco tax.


HB 333-FN - AS INTRODUCED

 

 

2017 SESSION

17-0623

09/01

 

HOUSE BILL 333-FN

 

AN ACT removing the exemption for premium cigars from the tobacco tax.

 

SPONSORS: Rep. Ames, Ches. 9; Rep. Rogers, Merr. 28; Rep. Horrigan, Straf. 6

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill removes the exemption for premium cigars from the tobacco tax.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0623

09/01

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT removing the exemption for premium cigars from the tobacco tax.

 

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

 

1  Definitions; Tobacco Products.  Amend RSA 78:1, XIV to read as follows:

XIV.  "Tobacco products'' means cigarettes, loose tobacco, smokeless tobacco, and cigars[, but shall not include premium cigars].

2  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 65.03 percent of the wholesale sales price.  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.  [No such tax shall be imposed on premium cigars.]

3  Definitions; Tobacco Products.  Amend RSA 175:1, LXIV-d to read as follows:

LXIV-d.  "Tobacco products'' means cigarettes, loose tobacco, [and] smokeless tobacco, and cigars.

4  Repeal.  RSA 78:1, XXI, relative to the definition of premium cigars, is repealed.

5  Effective Date.  This act shall take effect July 1, 2017.

 

LBAO

17-0623

12/30/16

 

HB 333-FN- FISCAL NOTE

as introduced

 

AN ACT removing the exemption for premium cigars from the tobacco tax.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

$0

$0

$0

$0

Funding Source:

  [ X ] General            [ X ] Education            [   ] Highway           [    ] Other

 

 

 

 

 

 

METHODOLOGY:

This bill imposes a tax on premium cigars at the tobacco products other than cigarettes rate of 65.03 percent of the wholesale sales price.  Premium cigars are defined as cigars that are made entirely by hand of all natural tobacco leaf; hand constructed and hand wrapped; weigh more than 3 pounds per 1,000 cigars; and are kept in a humidor.  The Department of Revenue Administration states it would need to update all tax forms and electronic management systems related to taxing premium cigars.  The Department indicates it can make the necessary changes/updates with no additional expenditures.  The Department does not have complete data on the sale of premium cigars currently excluded from the tobacco tax to determine the increase in general fund and education trust fund revenue.  The Department indicates wholesalers who sell tobacco products other than premium cigars are required to file a monthly return that reports both the sale of taxable and non-taxable premium cigars.  For FY 2016 these wholesalers reported sales of $524,786 of premium cigars.  If a seller only sells premium cigars and no other tobacco products, no report of sales is made to the Department.  Based on the reports filed with the Department by wholesalers selling tobacco products other than premium cigars for FY 2016, if premium cigars had been taxed at a rate of 65.03% of the wholesale price, the minimum increase in tobacco tax revenue would be $341,268.

 

AGENCIES CONTACTED:

Department of Revenue Administration

 

Links

HB333 at GenCourtMobile

Action Dates

Date Body Type
Jan. 19, 2017 House Hearing
Jan. 26, 2017 House Exec Session
Feb. 9, 2017 House Floor Vote
Feb. 15, 2017 House Floor Vote
Feb. 16, 2017 House Floor Vote

Bill Text Revisions

HB333 Revision: 870 Date: Jan. 30, 2017, 10:13 a.m.

Docket

Date Status
Jan. 5, 2017 Introduced 01/05/2017 and referred to Ways and Means HJ 3 P. 9
Jan. 19, 2017 Public Hearing: 01/19/2017 01:00 PM LOB 202
Jan. 26, 2017 Executive Session: 01/26/2017 11:20 PM LOB 202
Feb. 9, 2017 Majority Committee Report: Inexpedient to Legislate for 02/09/2017 (Vote 18-3; RC) HC 10 P. 13
Minority Committee Report: Ought to Pass
Special Order to regular calendar on 2/15/2017 Without Objection HJ 6 P. 25
Special Order to 2/16/2017 Without Objection HJ 7 P. 57
Feb. 16, 2017 Inexpedient to Legislate: MA RC 252-73 02/16/2017 HJ 8 P. 38