SB409 (2018) Detail

Relative to the taxation of moist snuff tobacco products.


SB 409-FN - AS INTRODUCED

 

 

2018 SESSION

18-2836

03/10

 

SENATE BILL 409-FN

 

AN ACT relative to the taxation of moist snuff tobacco products.

 

SPONSORS: Sen. Giuda, Dist 2; Rep. J. Graham, Hills. 7; Rep. D. Sullivan, Hills. 8

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill establishes a tax for moist snuff as a tobacco product.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2836

03/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to the taxation of moist snuff tobacco products.

 

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

 

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

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

2  New Paragraph; Tobacco Tax; Definitions; Moist Snuff.  Amend RSA 78:1 by inserting after paragraph XXIV the following new paragraph:

XXV.  "Moist snuff" means any finely cut, ground, or powdered tobacco that is not intended to be smoked, but shall not include any finely cut, ground, or powdered tobacco that is intended to be placed in the nasal cavity.

3  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 and Moist Snuff.  A tax upon the retail consumer is hereby imposed on tobacco products other than cigarettes and moist snuff 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.

4  Consumer Reporting and Payment.  Amend RSA 78:7-d, I to read as follows:

I.  A consumer who purchases, imports, receives, or otherwise acquires tobacco products from other than a licensed retailer or licensed vending machine operator and without documentation to evidence tax paid under this chapter shall file, on or before the last day of the month following each month in which such tobacco products were acquired, a return on a form prescribed by the commissioner together with payment of the tax imposed by this chapter at the rate provided in RSA 78:7, [and] RSA 78:7-c, and RSA 78:7-e.  The return shall report the number of tobacco products purchased, imported, received, or otherwise acquired during the previous calendar month and any additional information the commissioner may require.  

5  New Section; Tobacco Tax; Tax Imposed on Moist Snuff.  Amend RSA 78 by inserting after section 7-d the following new section:

78:7-e  Tax Imposed on Moist Snuff.  A tax upon the retail consumer is hereby imposed on moist snuff at the rate of $1.68 per ounce and a proportionate tax for any other quantity or fractional part thereof.  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.

6  Effective Date.  This act shall take effect July 1, 2018.

 

LBAO

18-2836

12/5/17

 

SB 409-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the taxation of moist snuff tobacco products.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

$0

$0

$0

$0

Funding Source:

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

 

 

 

 

 

METHODOLOGY:

This bill adds a definition of moist snuff and proposes to tax it at $1.68 per ounce and a proportionate tax for any other quantity or fractional part thereof.  Under current law, moist snuff is taxed as other tobacco product at a rate of 65.03% of the wholesale sales price.  The Department of Revenue Administration is unable to determine the fiscal impact to the State General Fund and Education Trust Fund of taxing moist snuff by weight because the Department does not have complete data on existing sales volumes by weight of moist snuff in the State.  Wholesalers who sell smokeless tobacco in the State are required to file a monthly return that requires the wholesaler to report their sales, in dollars, of smokeless tobacco products sold or distributed in the State.  The filings from wholesalers do not breakdown the type of smokeless tobacco, which includes moist snuff.  The Department does know that in fiscal year 2017, there was $13,921,193 in smokeless tobacco sales in the State, which includes moist snuff and all other forms of smokeless tobacco, that resulted in $9,052,952 in tobacco tax paid.

 

The Department states it would need to update all necessary tax return forms and electronic management systems related to taxing moist snuff by weight.  The Department is able to administer this bill within its operating budget.

 

AGENCIES CONTACTED:

Department of Revenue Administration

 

 

Links

SB409 at GenCourtMobile

Action Dates

Date Body Type
Jan. 10, 2018 Senate Hearing
Jan. 17, 2018 Senate Hearing

Bill Text Revisions

SB409 Revision: 2754 Date: Dec. 20, 2017, 8:29 a.m.

Docket

Date Status
Jan. 3, 2018 To Be Introduced 01/03/2018 and Referred to Ways and Means; SJ 1
Jan. 10, 2018 ==CANCELLED== Hearing: 01/10/2018, Room 100, SH, 09:20 am; SC 49
Jan. 17, 2018 Hearing: 01/17/2018, Room 100, SH, 10:00 am; SC 3
Feb. 22, 2018 Committee Report: Referred to Interim Study, 02/22/2018; SC 8
Feb. 22, 2018 Refer to Interim Study, MA, VV; 02/22/2018; SJ 5