HB 2742 — Revenue and taxation; cigarettes; heated tobacco products; definition; exemption; stamps; effective date.

HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 1st Session of the 60th Legislature (2025) COMMITTEE SUBSTITUTE FOR HOUSE BILL NO.

Caldwell (Trey) 6and Lawson of the House and Paxton of the Senate 9 COMMITTEE SUBSTITUTE [ cigarettes – taxes – definition – exemption – stamps – reference – effective date - emergency ] BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

HB2742 HFLR Page 1 BOLD FACE denotes Committee Amendments.

The term "person" is defined to mean and include any individual, company, partnership, joint venture, joint agreement, association (mutual or otherwise), limited liability company, corporation, estate, trust, business trust receiver, or trustee Req.appointed by any state or federal court, or otherwise, syndicate, or any political subdivision of the state or combination acting as a unit, in the plural or singular number;

No.

12962 Page 1 appointed by any state or federal court, or otherwise, syndicate, or any political subdivision of the state or combination acting as a unit, in the plural or singular number;

comes into the possession of cigarettes for the purpose of selling them to retailers or to persons outsideHB2742 orHFLR withinPage the2 stateBOLD whoFACE mightdenotes resellCommittee orAmendments. retail such cigarettes to consumers.

Inoutside additionor towithin the foregoing,state andwho irrespectivemight ofresell the percentage or typeretail ofsuch sales, the term "wholesaler", "distributor" and/or "jobber" shall also include all purchasers of cigarettes makingto Req.consumers.

No.In addition to the foregoing, and irrespective of the percentage or type of sales, the term "wholesaler", "distributor" and/or "jobber" shall also include all purchasers of cigarettes making purchases directly from the manufacturer for distribution at wholesale or retail sale and this shall not affect the requirements relating to retail licenses;

12962 Page 2 purchases directly from the manufacturer for distribution at wholesale or retail sale and this shall not affect the requirements relating to retail licenses;

The term "sale" and/or "sales" is hereby defined to be and declared to include sales, barters, exchanges and every other manner,HB2742 methodHFLR andPage form3 ofBOLD transferringFACE thedenotes ownershipCommittee ofAmendments. personal property from one person to another, and is also declared to be the use or consumption in this state in the first instance of cigarettes received from without the state or of any other cigarettes upon which the tax has not been paid.

Themanner, termmethod "firstand sale"form shallof meantransferring Req.the ownership of personal property from one person to another, and is also declared to be the use or consumption in this state in the first instance of cigarettes received from without the state or of any other cigarettes upon which the tax has not been paid.

No.The term "first sale" shall mean and include the first sale or distribution of cigarettes in intrastate commerce or the first use or consumption of cigarettes within this state;

12962 Page 3 and include the first sale or distribution of cigarettes in intrastate commerce or the first use or consumption of cigarettes within this state;

HB2742 HFLR Page 4 BOLD FACE denotes Committee Amendments.

The term "distributing agent" Req.shall also mean and include any person who solicits or takes orders for cigarettes to be shipped in interstate commerce to a person in this state by a person residing outside of Oklahoma, the tax not having been paid on such cigarettes;

No.

12962 Page 4 shall also mean and include any person who solicits or takes orders for cigarettes to be shipped in interstate commerce to a person in this state by a person residing outside of Oklahoma, the tax not having been paid on such cigarettes;

(1) the purchaser submits the order for such sale by means of a telephonic or other method of voice transmission, the mails or any other delivery service, or the Internet or other online service, or (2)HB2742 theHFLR cigarettesPage are5 deliveredBOLD byFACE usedenotes ofCommittee theAmendments. mails or other delivery service.

(2) the cigarettes are delivered by use of the mails or other delivery service.

Req.c.

No.

12962 Page 5 c.

HB2742 HFLR Page 6 BOLD FACE denotes Committee Amendments.

Req.SECTION 2.

No.

12962 Page 6 SECTION 2.

and 4.HB2742 HFLR Page 7 BOLD FACE denotes Committee Amendments.

4.

Req.SECTION 3.

No.

12962 Page 7 SECTION 3.

60-1-12962COMMITTEE JMREPORT 02/26/25BY: Req.

No.COMMITTEE ON APPROPRIATIONS AND BUDGET, dated 02/26/2025 - DO PASS, As Amended and Coauthored.

12962HB2742 HFLR Page 8 BOLD FACE denotes Committee Amendments.