SB 2281 — Relating to a tax on cigars, other tobacco products, alternative tobacco products, electronic smoking devices, and electronic smoking device substances and a tobacco tax distribution fund; to amend and reenact section 57‑36‑01, subsection 1 of section 57‑36‑31, and section 57‑36‑32 of the North Dakota Century Code, relating to the definition of alternative tobacco products, transfer and allocation of tobacco products tax revenue and tax on cigarettes; to provide a penalty; to provide a continuing appropriation; and to provide an effective date.

Summary

A BILL for an Act to create and enact five new sections to chapter 57-36 of the North Dakota Century Code, relating to a tax on cigars, other tobacco products, alternative tobacco products, electronic smoking devices, and electronic smoking device substances and a tobacco tax distribution fund; to amend and reenact section 57-36-01, subsection 1 of section 57-36-31, and section 57-36-32 of the North Dakota Century Code, relating to the definition of alternative tobacco products, transfer and allocation of tobacco products tax revenue and tax on cigarettes; to provide a penalty; to provide a continuing appropriation; and to provide an effective date.

Bill Text

• Introduced View text Current pdf

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill amends definitions related to tobacco products and establishes new taxes on cigars, other tobacco products, and alternative tobacco products, while also revising the allocation of revenue from taxes on cigarettes.

• N.D.C.C. § 57-36-01

  "Alternative tobacco product" means a noncombustible product containing nicotine or synthetic nicotine, intended for human consumption by chewing, absorbing, dissolving, or any other means. The term includes: (1) Nicotine gels; (2) Nicotine pouches; and (3) Dissolvable tobacco products. The term does not include products approved by the United States food and drug administration for nicotine replacement therapy.

  Adds a new definition for 'alternative tobacco product' to clarify what products it includes and excludes.

• N.D.C.C. § 57-36-01

  1. "Chewing tobacco" means any leaf tobacco that is intended to be placed in the mouth. → 2. "Chewing tobacco" means any leaf tobacco that is intended to be placed in the mouth.

  Shifts the numbering of the definition for 'chewing tobacco' to the second position.

• N.D.C.C. § 57-36-31

  must be transmitted to the state treasurer at the end of each month and deposited in the state treasury to the credit of the general fund, except as hereinafter provided. → must be transmitted to the state treasurer at the end of each month and deposited in the state treasury to the credit of the general fund, except as hereinafter otherwise provided in this section, section 57-36-32, and sections 4, 5, 6, and 7 of this Act.

  Clarifies that certain sections are exempt from the general fund allocation.

• N.D.C.C. § 57-36-32

  There is hereby levied and assessed and there shall be collected by the state tax commissioner and paid to the state treasurer, upon all cigarettes sold in this state, an additional tax, separate and apart from all other taxes, of seventeen mills on each cigarette, → There is hereby levied and assessed and there shall must be collected by the state tax commissioner and paid to the state treasurer, upon all cigarettes sold in this state, an additional tax, separate and apart from all other taxes, of seventeen mills on each cigarette,

  Corrects grammatical structure in the tax assessment language.

• N.D.C.C. § 57-36-32

  the state treasurer shall transfer the funds collected under this section shall be credited to the state general fund. → The state treasurer shall transfer the funds collected under this subsection to the tobacco tax distribution fund.

  Changes the destination of the funds collected from the additional cigarette tax to a new tobacco tax distribution fund.

• N.D.C.C. § 57-36-32

  2. There is levied and assessed and must be collected by the state tax commissioner and paid to the state treasurer, on cigarettes sold in this state, an additional tax, separate from all other taxes, of twelve and one-half mills on each cigarette,

  Introduces a new tax on cigarettes with a specified rate in addition to the existing tax.

• N.D.C.C. § 57-36-32

  4. There is levied and assessed and must be collected by the state tax commissioner and paid to the state treasurer, on cigars sold in the state, an additional tax, separate from all other taxes, of thirty-two percent of the wholesale purchase price at which the cigars are purchased by distributors.

  Imposes a new tax on the sale of cigars based on their wholesale price.

• N.D.C.C. § 57-36-32

  5. There is levied and assessed and must be collected by the state tax commissioner and paid to the state treasurer, on other tobacco products sold in the state, an additional tax, separate from all other taxes, of twenty-eight percent of the wholesale purchase price at which other tobacco products are purchased by distributors.

  Imposes a new tax on other tobacco products based on their wholesale price.

• N.D.C.C. § 57-36-32

  6. There is levied and assessed and must be collected by the state tax commissioner and paid to the state treasurer, on alternative tobacco products sold in the state, an additional tax, separate from all other taxes, of twenty-eight percent of the wholesale purchase price at which alternative tobacco products are purchased by distributors.

  Imposes a new tax on alternative tobacco products based on their wholesale price.

Action History

1. March 12, 2025

   Second reading, failed to pass, yeas 21 nays 70

2. March 11, 2025

   Reported back, do not pass, placed on calendar 10 3 1

3. March 11, 2025

   Committee Hearing 11:00

4. March 07, 2025

   Introduced, first reading, referred Finance and Taxation Committee

5. February 25, 2025

   Received from Senate

6. February 24, 2025

   Second reading, passed, yeas 26 nays 21

7. February 18, 2025

   Reported back, do pass, place on calendar 5 1 0

8. January 27, 2025

   Committee Hearing 09:00

9. January 20, 2025

   Introduced, first reading, referred Finance and Taxation Committee

Sponsors

• Kathy Hogan · Primary
• Sean Cleary · Cosponsor
• Austin Rep. Foss · Cosponsor
• Jon O. Rep. Nelson · Cosponsor

Votes

Subjects