SB 131 — AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO TAXATION OF PREMIUM CIGARS.

Sturgeon DELAWARE& STATESen. SENATE 151st GENERAL ASSEMBLY SENATE AMENDMENT NO.

1Townsend TO& SENATESen. BILL NO.

131Brown AMEND& SenateRep. Bill No.

131Brady by& deletingRep. lines 5 through 10 in their entirety and inserting in lieu thereof the following:

“(11)K. “Premium cigar” means a cigar that meets all of the following:

Williams & Rep.

Ramone Sens.

Walsh, Bonini, Ennis, Pettyjohn, Hocker;

Reps.

D.

Short, Osienski, Kowalko, Collins, Gray, Briggs King DELAWARE STATE SENATE 151st GENERAL ASSEMBLY SENATE BILL NO.

131 AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO TAXATION OF PREMIUM CIGARS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1.

Amend § 5301, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly:

§ 5301.

Definitions.

As used in this chapter:

(11) “Premium cigar” means any roll for smoking that is made entirely of tobacco and has all of the following characteristics:

ContainsThe onlycigar, tobacco,including water,the andfiller, vegetablewrapper, gum and nobinder, otheris ingredientsmade orof additives.100% leaf tobacco.

WrappedThe incigar wholeis tobaccohand leaf.rolled.

b.

Contains a 100% leaf tobacco binder.

WeighsThe morecigar contains no filter or tip, or any mouthpiece consisting of a material other than 6tobacco, poundsor perany 1,000additional units.flavoring.

d.(15) (16) “Tobacco products” means all products made primarily from tobacco for individual consumption, including cigarettes, cigars, premium cigars, pipe tobacco, and vapor products.

FiftySection percent2. or more of the filler, by weight, contains long filler tobacco, which are whole tobacco leaves that run the length of the cigar.

e.Amend § 5305, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

Contains§ no5305. filter, nontobacco tip, or nontobacco mouthpiece.

f.Levy of tax, limitation;

Containsexemption. no characterizing flavor other than tobacco.

g.(b) A tax is imposed and assessed upon the sale or use of all tobacco products, except those tobacco products taxed under subsection subsections (a) or (c) of this section, within this State at the rate of 30% of the wholesale price on such products.

Is(c)(1) handmadeA tax is imposed and assessed upon the sale or handuse rolled,of whichmoist meanssnuff thatwithin nothis machineryState wasat usedthe apartrate fromof simple92 tools,cents suchper asounce scissorsand toa cutproportionate tax at the tobaccolike beforerate rolling.”.on any fractional parts of an ounce.

SYNOPSISThe Thisper Amendmentounce revisestax imposed under this subsection paragraph must be computed based on the definitionnet ofweight "premiumas cigar"listed by addingthe additionalmanufacturer. requirements.

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05/06/2021 04:54 PM (2) An excise tax is imposed and assessed upon the sale or use of vapor products within this State at the rate of 5 cents per fluid milliliter of vapor product.

The tax imposed by this paragraph (c)(2) of this section must be computed based on the amount of vapor product in milliliters as listed by the manufacturer.

All invoices for vapor products issued by a manufacturer must state the amount of vapor product in milliliters.

(3) A tax is imposed and assessed upon the sale or use of premium cigars within this State at a rate of 15% of the wholesale price of the premium cigar.