Bill Text: NY S02425 | 2023-2024 | General Assembly | Introduced

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Bill Title: Increases the tax imposed on the sale of certain tobacco products from 75% to 129% and increases the tax imposed on the retail sale of vapor products from 20% to 48%; makes conforming changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - REFERRED TO BUDGET AND REVENUE [S02425 Detail]

Download: New_York-2023-S02425-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2425

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 20, 2023
                                       ___________

        Introduced  by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
          when printed to be committed to the Committee on Budget and Revenue

        AN ACT to amend the tax law, in relation to increasing the  tax  imposed
          on the sale of tobacco products and the retail sale of vapor products

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 1 of section 471-b of the tax law,  as  amended
     2  by  section 2 of part QQ-1 of chapter 57 of the laws of 2008, paragraphs
     3  (a) and (b) as amended by section 18  and  paragraph  (c)  as  added  by
     4  section  19  of part D of chapter 134 of the laws of 2010, is amended to
     5  read as follows:
     6    1. There is hereby imposed and shall be paid  a  tax  on  all  tobacco
     7  products  possessed in this state by any person for sale, except that no
     8  tax shall be imposed on tobacco products sold under  such  circumstances
     9  that  this  state  is  without  power to impose such tax, or sold to the
    10  United States, or sold to or by a voluntary unincorporated  organization
    11  of  the armed forces of the United States operating a place for the sale
    12  of goods pursuant to regulations promulgated by the  appropriate  execu-
    13  tive  agency  of the United States, to the extent provided in such regu-
    14  lations and policy statements of  such  an  agency  applicable  to  such
    15  sales.
    16    (a)  Such tax on tobacco products other than [snuff and] little cigars
    17  shall be at the rate of [seventy-five] one hundred  twenty-nine  percent
    18  of the wholesale price, and is intended to be imposed only once upon the
    19  sale of any tobacco products other than [snuff and] little cigars.
    20    (b)  [Such  tax on snuff shall be at the rate of two dollars per ounce
    21  and a proportionate rate on any fractional parts of an  ounce,  provided
    22  that  cans or packages of snuff with a net weight of less than one ounce
    23  shall be taxed at the equivalent rate of cans or packages  weighing  one
    24  ounce.  Such  tax shall be computed based on the net weight as listed by

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00682-01-3
        S. 2425                             2

     1  the manufacturer, and is intended to be imposed only once upon the  sale
     2  of any snuff.
     3    (c)]  Such  tax  on little cigars shall be at the same rate imposed on
     4  cigarettes under this article and is intended to be  imposed  only  once
     5  upon the sale of any little cigars.
     6    It  shall  be  presumed that all tobacco products within the state are
     7  subject to tax until the contrary is  established,  and  the  burden  of
     8  proof  that any tobacco products are not taxable hereunder shall be upon
     9  the person in possession thereof.
    10    § 2. Section 1181 of the tax law, as amended by chapter 92 of the laws
    11  of 2021, is amended to read as follows:
    12    § 1181. Imposition of tax. In addition to any  other  tax  imposed  by
    13  this  chapter  or  other  law, there is hereby imposed a tax of [twenty]
    14  forty-eight percent on receipts from the retail sale of  vapor  products
    15  sold in this state. The tax is imposed on the purchaser and collected by
    16  the vapor products dealer as defined in subdivision (b) of section elev-
    17  en  hundred  eighty  of this article, in trust for and on account of the
    18  state. The taxes imposed under this section shall not apply to adult-use
    19  cannabis products subject to tax under article twenty-C of this chapter.
    20    § 3. This act shall take effect immediately.