Revision: Jan. 16, 2019, 12:46 p.m.
HB 680-FN - AS INTRODUCED
2019 SESSION
19-0807
10/05
HOUSE BILL 680-FN
AN ACT relative to the definition of tobacco product for purposes of the tobacco tax and retail tobacco licensing.
SPONSORS: Rep. Martin, Hills. 23; Rep. Almy, Graf. 13; Rep. Berrien, Rock. 18; Rep. Campion, Graf. 12; Rep. Horrigan, Straf. 6; Rep. McBeath, Rock. 26; Rep. Southworth, Straf. 20; Rep. Heath, Hills. 14; Rep. Fothergill, Coos 1; Rep. McGhee, Hills. 40; Sen. Watters, Dist 4; Sen. Chandley, Dist 11
COMMITTEE: Commerce and Consumer Affairs
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ANALYSIS
This bill defines what is a tobacco product for purposes of the tobacco tax and retail tobacco licensing, and adds certain devices used for inhaling aerosolized or vaporized substances to the definition.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
19-0807
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
AN ACT relative to the definition of tobacco product for purposes of the tobacco tax and retail tobacco licensing.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Tobacco Tax; Definition; Tobacco Products. RSA 78:1, XIV is repealed and reenacted to read as follows:
XIV.(a) “Tobacco products” means:
(1) Any product that is made from or derived from tobacco, or that contains nicotine, that is intended for human consumption or is likely to be consumed, whether smoked, heated, chewed, absorbed, dissolved, inhaled, or ingested by any other means, including, but not limited to, a cigarette, a cigar, hookah, pipe tobacco, chewing tobacco, snuff, and snus; and
(2) Any device that may be used to deliver any aerosolized or vaporized substance whether or not the substance contains nicotine, to the person inhaling from the device, including, but not limited to, hookah, e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah; and
(3) Notwithstanding any provision of subparagraphs (1) and (2) to the contrary, “tobacco products” includes any component, part, or accessory of a tobacco product, whether or not these are sold separately, including any substance consumed during the use of a device described in subparagraph (2), whether or not it contains nicotine.
(b) “Tobacco products” shall not include:
(1) Drugs, devices, or combination products authorized for sale by the U.S. Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.
(2) Premium cigars.
2 Liquor Commission; General Provisions; Definitions. RSA 175:1, LXIV-d is repealed and reenacted to read as follows:
LXIV-d.(a) “Tobacco products” means:
(1) Any product that is made from or derived from tobacco, or that contains nicotine, that is intended for human consumption or is likely to be consumed, whether smoked, heated, chewed, absorbed, dissolved, inhaled, or ingested by any other means, including, but not limited to, a cigarette, a cigar, hookah, pipe tobacco, chewing tobacco, snuff, and snus; and
(2) Any device that may be used to deliver any aerosolized or vaporized substance whether or not the substance contains nicotine, to the person inhaling from the device, including, but not limited to, hookah, e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah; and
(3) Notwithstanding any provision of subparagraphs (1) and (2) to the contrary, “tobacco products” includes any component, part, or accessory of a tobacco product, whether or not these are sold separately, including any substance consumed during the use of a device described in subparagraph (2), whether or not it contains nicotine.
(b) “Tobacco products” shall not include:
(1) Drugs, devices, or combination products authorized for sale by the U.S. Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.
(2) Premium cigars.
3 Effective Date. This act shall take effect July 1, 2019.
19-0807
1/15/19
HB 680-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | Potential Increase of $4,500,000 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ X ] General [ X ] Education [ ] Highway [ ] Other | |||
METHODOLOGY:
This bill modifies the definition of tobacco products under the Tobacco Tax and liquor laws for retail tobacco licenses. The Tobacco Tax is imposed pursuant to RSA 78:7-c on tobacco products other than cigarettes at a rate of 65.03 percent of the wholesale price.
The Department of Revenue Administration cannot estimate the number of devices, component parts or amount of substance consumed through such devices that would be sold in New Hampshire, or the wholesale price of any such tobacco products. The Department provided a comparison to the State of Pennsylvania, which imposes a tax on e-cigarette/vapor products at a rate of 40 percent of the wholesale price. After adjusting for the population difference between the states and using the rate of 65.03 percent, the Department estimates a possible revenue increase of $4.5 million.
The New Hampshire State Liquor Commission (NHSLC) indicates it currently licenses 1535 tobacco retailers: 158 tobacco only retailers, 1361 combination alcohol and tobacco licenses and 16 cigar bar retail tobacco licenses. The NHSLC does not anticipate a significant increase or decrease in the number of licensees as a result of this bill. The Division of Enforcement, Licensing and Education will need to educate new and existing licensees on the changes contained in the bill but the total cost to monitor and enforce the new provisions is indeterminable.
AGENCIES CONTACTED:
Department of Revenue Administration and Liquor Commission