Bill Text: NY S00157 | 2017-2018 | General Assembly | Introduced

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Bill Title: Amends certain definitions relating to tobacco products and changes the minimum pack sizes for tobacco products and the tax amount for tobacco products.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO HEALTH [S00157 Detail]

Download: New_York-2017-S00157-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                           157
                               2017-2018 Regular Sessions
                    IN SENATE
                                       (Prefiled)
                                     January 4, 2017
                                       ___________
        Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Health
        AN ACT to amend the public health law and the tax law,  in  relation  to
          amending  certain  definitions  relating  to  tobacco products; and to
          amend the public health law and the tax law, in relation  to  changing
          the  minimum  pack  sizes  for tobacco products and the tax amount for
          tobacco products
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1.  Subdivision 5 of section 1399-aa of the public health law,
     2  as  amended  by  chapter  152  of the laws of 2004, is amended and a new
     3  subdivision 14 is added to read as follows:
     4    5. "Tobacco products" means one or more cigarettes or  cigars,  bidis,
     5  chewing  tobacco,  loose tobacco, single-unit tobacco, powdered tobacco,
     6  nicotine water or any other tobacco products and also includes any other
     7  product containing tobacco or nicotine that is intended or  expected  to
     8  be  consumed  except  for any such product that has been approved by the
     9  U.S.  Food and Drug Administration for sale as a tobacco  use  cessation
    10  product  or  for  other  medical purposes and is being marketed and sold
    11  solely for that approved purpose.
    12    14. "Cigarette" means any roll for smoking made wholly or in  part  of
    13  tobacco  or of any other substance, irrespective of size, shape, appear-
    14  ance, packaging, pricing, marketing or labeling and whether or not  such
    15  tobacco  or  substance  is flavored, adulterated or mixed with any other
    16  ingredient, the wrapper or cover of which is made of paper or any  other
    17  substance  or  material  but  is not made in whole or in part of tobacco
    18  that is likely to be offered to, purchased by, or consumed by  consumers
    19  as  a  cigarette,  as  defined  above,  including  any  roll for smoking
    20  containing tobacco wrapped in a substance containing tobacco that weighs
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00945-01-7
        S. 157                              2
     1  no more than four and a half pounds per thousand unless it is wrapped in
     2  whole tobacco leaf and does not have an internal filter.
     3    § 2. Subdivisions 1, 2 and 2-a of section 470 of the tax law, subdivi-
     4  sion  1 as amended by section 14 and subdivision 2 as amended by section
     5  15 of part D of chapter 134 of the laws of 2010 and subdivision  2-a  as
     6  added by chapter 552 of the laws of 2008, are amended and two new subdi-
     7  visions 2-c and 2-d are added to read as follows:
     8    1. "Cigarette." Any roll for smoking made wholly or in part of tobacco
     9  or of any other substance, irrespective of size [or], shape, appearance,
    10  packaging, pricing, marketing or labeling and whether or not such tobac-
    11  co  or substance is flavored, adulterated or mixed with any other ingre-
    12  dient, the wrapper or cover of which is  made  of  paper  or  any  other
    13  substance  or  material  but  is not made in whole or in part of tobacco
    14  that is likely to be offered to, purchased by, or consumed by  consumers
    15  as  a  cigarette,  as  defined  above,  including  any  roll for smoking
    16  containing tobacco wrapped in a substance containing tobacco that weighs
    17  no more than four and a half pounds per thousand unless it is wrapped in
    18  whole tobacco leaf and does not have an internal filter.
    19    2. "Tobacco products." Any cigar, including a little cigar, or  tobac-
    20  co,  other  than cigarettes, [intended for consumption by smoking, chew-
    21  ing, or as snuff] and also includes any other product containing tobacco
    22  or nicotine that is intended or expected to be consumed except  for  any
    23  such  product  that has been approved by the U.S. Food and Drug Adminis-
    24  tration for sale as a tobacco use cessation product or for other medical
    25  purposes and is  being  marketed  and  sold  solely  for  that  approved
    26  purpose.
    27    2-a.  "[Roll-your-own]  Loose  tobacco."  Any  tobacco  product  that,
    28  because of its appearance, type, packaging or labeling, is suitable  for
    29  use  and  likely to be offered to, or purchased by, consumers as tobacco
    30  for making cigarettes.  Loose tobacco shall also include  pipe  tobacco,
    31  roll-your-own tobacco and any other loose tobacco used for smoking.
    32    2-c.  "Single-unit  tobacco  products." Any tobacco product, including
    33  finely cut, ground or powdered loose tobacco or blend containing tobacco
    34  intended for oral consumption without being combusted, other than  ciga-
    35  rettes  or  cigars,  that  is  offered  in  discrete single-use tablets,
    36  lozenges, pouches, pills, or other single-dose or single-use  units,  or
    37  in packages of such single-use units.
    38    2-d.  "Moist snuff."   Finely cut, ground or powdered loose tobacco or
    39  blend containing tobacco intended for  oral  consumption  without  being
    40  combusted that is not a single-unit tobacco product.
    41    §  3.  Subdivision  2  of section 1399-gg of the public health law, as
    42  added by chapter 513 of the laws of 2004, is amended to read as follows:
    43    2. No person engaged in the  business  of  manufacturing,  selling  or
    44  otherwise  distributing  tobacco  products, herbal cigarettes, cigarette
    45  wrapping papers, wrapping leaves or tubes, or any agent or  employee  of
    46  such  person,  shall manufacture or cause to be manufactured for sale in
    47  this state, or sell or distribute in this  state:  (a)  any  package  or
    48  other  container  of cigarettes containing fewer than twenty cigarettes;
    49  (b) any package of [roll-your-own] loose tobacco  containing  less  than
    50  [six-tenths]  sixty-five hundredths of an ounce of tobacco; [or] (c) any
    51  package of cigars containing fewer than five cigars; (d) any package  of
    52  single-unit  tobacco,  as  defined  in subdivision two-c of section four
    53  hundred seventy of the tax law, containing fewer than twenty  pieces  of
    54  single-use units; (e) any package of moist snuff containing less than an
    55  ounce  of  tobacco;  or  (f) any package or other container of cigarette
    56  wrapping papers, wrapping leaves or tubes, that are or are held  out  to
        S. 157                              3
     1  be  suitable  for  use  or  used as devices to wrap tobacco for smoking,
     2  containing fewer than twenty sheets, leaves or tubes.
     3    §  4.  Subdivision  1  of  section 471-b of the tax law, as amended by
     4  section 2 of part QQ-1 of chapter 57 of the laws of 2008, paragraphs (a)
     5  and (b) as amended by section 18 and paragraph (c) as added  by  section
     6  19  of  part D of chapter 134 of the laws of 2010, is amended to read as
     7  follows:
     8    1. There is hereby imposed and shall be paid  a  tax  on  all  tobacco
     9  products  possessed in this state by any person for sale, except that no
    10  tax shall be imposed on tobacco products sold under  such  circumstances
    11  that  this  state  is  without  power to impose such tax, or sold to the
    12  United States, or sold to or by a voluntary unincorporated  organization
    13  of  the armed forces of the United States operating a place for the sale
    14  of goods pursuant to regulations promulgated by the  appropriate  execu-
    15  tive  agency  of the United States, to the extent provided in such regu-
    16  lations and policy statements of  such  an  agency  applicable  to  such
    17  sales.
    18    (a)  Such tax on tobacco products [other than snuff and little cigars]
    19  shall be at the rate of [seventy-five] ninety-five percent of the whole-
    20  sale price or the minimum rates as indicated in paragraph (b), (c), (d),
    21  (e) or (f) of this subdivision, whichever is higher, and is intended  to
    22  be  imposed  only once upon the sale of any tobacco products [other than
    23  snuff and little cigars].
    24    (b) Such minimum tax on moist snuff shall be  at  the  rate  of  [two]
    25  three  dollars  and sixty-three cents per ounce and a proportionate rate
    26  on any fractional parts of an ounce[, provided that cans or packages  of
    27  snuff  with  a  net  weight of less than one ounce shall be taxed at the
    28  equivalent rate of cans or packages weighing one ounce]. Such tax  shall
    29  be  computed  based on the net weight as listed by the manufacturer, and
    30  is intended to be imposed only once upon the sale of any moist snuff.
    31    (c) Such tax on little cigars shall be at the  same  rate  imposed  on
    32  cigarettes  under  this  article and is intended to be imposed only once
    33  upon the sale of any little cigars.
    34    (d) Such minimum tax on single-unit tobacco products shall be  at  the
    35  same rate imposed on cigarettes under this article and is intended to be
    36  imposed only once upon the sale of any single-dose or single-unit tobac-
    37  co products.
    38    (e)  Such  minimum tax on any loose tobacco meant for smoking shall be
    39  equal to the amount of the total tax on  a  pack  of  twenty  cigarettes
    40  under this article per 0.65 ounces with a proportionate tax on any other
    41  weights,  based  on  the net weight determined by the manufacturer. Such
    42  tax is intended to be imposed only once  upon  the  sale  of  any  loose
    43  tobacco.
    44    (f)  Such  minimum  tax  on cigars, other than little cigars, shall be
    45  equal to the amount of the total tax on  a  pack  of  twenty  cigarettes
    46  under  this article with a proportionate tax on packages with fewer than
    47  five cigars and is intended to be imposed only once upon the sale of any
    48  cigars.
    49    It shall be presumed that all tobacco products within  the  state  are
    50  subject  to  tax  until  the  contrary is established, and the burden of
    51  proof that any tobacco products are not taxable hereunder shall be  upon
    52  the person in possession thereof.
    53    § 5. This act shall take effect immediately.