Revision: Dec. 23, 2022, 10 a.m.
2023 SESSION
23-0553.0
02/10
HOUSE BILL [bill number]
AN ACT relative to the taxation of tobacco and nicotine products.
SPONSORS: [sponsors]
COMMITTEE: [committee]
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ANALYSIS
This bill directs the commissioner of the department of revenue administration to annually set the tobacco and nicotine tax based on the rates charged by neighboring states, and directs the commissioner to produce a report detailing the uses of such taxes.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0553.0
02/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT relative to the taxation of tobacco and nicotine products.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Tobacco Tax; Tax Imposed. Amend RSA 78:2 to read as follows:
78:2 Tax Imposed.
I. A tax on all cigarettes and little cigars sold at retail in this state is imposed upon the consumer at the rate [of $1.78] according to paragraph III-a for each package containing 20 cigarettes or little cigars or at a rate proportional to such rate for packages containing other than 20 cigarettes or little cigars.
II.(a) A tax on all other tobacco products sold at retail in this state is imposed on tobacco products other than cigarettes, except electronic cigarettes, at a rate [of 65.03 percent of the wholesale sales price] according to paragraph III-a.
(b) A tax upon electronic cigarettes sold at retail in this state is imposed as follows:
(1) For closed cartridges or containers of liquid or other substances containing nicotine that are not intended to be opened, at a rate [of $0.30] according to paragraph III-a per milliliter on the volume of the liquid or other substance in the cartridge or container as listed by the manufacturer; and
(2) For containers of liquid or other substances containing nicotine that are intended to be opened, at a rate [of 8 percent of the wholesale sales price] according to paragraph III-a.
(c) The tax under this paragraph 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 shall be imposed on premium cigars.
III. The tax shall be paid by the wholesaler who ships or transports tobacco products to retailers in this state, to be sold by those retailers.
III-a. The commissioner shall annually set and publish the tax rate for tobacco and nicotine products under this section for the upcoming fiscal year before January 1. Tax rates shall be a maximum of the lowest rate charged for equivalent products in Massachusetts, Maine, and Vermont, taking into account any secondary or sales tax, and a minimum of 8 percent below the lowest of such rates.
2 Commissioner of Revenue Administration to Produce Report on Tobacco and Nicotine Taxes. The commissioner of the department of revenue administration shall report by July 1, 2024 to the chairs of the house and senate ways and means committees detailing the current required uses of tobacco and nicotine taxes, to include the use of settlement funds from the tobacco industry, and the actual uses of such funds.