AB 232 — Revises provisions governing the taxation of other tobacco products. (BDR 32-618)

REQUIRESAssembly TWO-THIRDSBill MAJORITYNo. VOTE (§ 1) (Reprinted with amendments adopted on April 24, 2023) FIRST REPRINT A.B.

232232–Assemblymen ASSEMBLYHibbetts; BILL NO .

232–ASSEMBLYMENand HNguyen IBBETTSCHAPTER.......... ;AND N GUYEN M ARCH 2, 2023 ____________ Referred to Committee on Revenue SUMMARY—Revises provisions governing the taxation of other tobacco products.

(BDR 32-618) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

LegUnderLegislative existingCounsel’s law,Digest: there is imposed upon the receipt, purchase or sale of other tobacco products in this State a tax of 30 percent of the wholesale price of those products.

(NRSUnder 370.450)existing Sectionlaw, 1there ofis this bill specifically limits the tax imposed upon the receipt, purchase andor sale of other tobacco products thatin arethis premiumState cigarsa totax notof more30 thanpercent 50of centsthe orwholesale lessprice thanof 30those centsproducts. for each premium cigar.

(NRS 370.450) Section 1 definesof “premiumthis cigar”bill asspecifically alimits cigarthe thattax isimposed rolledupon bythe hand,receipt, haspurchase aand wrappersale madExisting law requires the Department of Taxationother totobacco allowproducts athat creditare ofpremium 30Section percent1 ofdefines the“premium wholesalecigar” price,as less a discountcigar ofthat 0.25is percentrolled forby thehand, serviceshas rendereda inwrapper collectingmade theof tax,whole for other tobacco productsleaves on which the tax has been paid and thatdoes maynot nohave longera befilter sold.or mouthpiece.

(NRSExisting 370.490)law Sectionrequires 1.5the Department of thisTaxation billto makesallow a credit of 30 percent of the wholesale price, less a discount of 0.25 percent for the services rendered in collecting the tax, for other tobacco products on which the tax has been conforming change in response to the change in the rate of the tax for premiumpremiumkes a cigars to provide that the amount of this credit is the amount of the tax paid.

bySection limitation2 onof Junethis 30,bill 2027.desprovides that the amendatory provisions of this bill expire THEby PEOPLElimitation OFon THEJune STATE30, OF2027. NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

SectionEXPLANATION 1.– Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

THE SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:D IN Section 1.

- *AB232_R1* – 2 – (a) If the other tobacco products are not premium cigars, a tax of 30 percent of the wholesale price of those products [.] ;

and (b) If the other tobacco products are premium cigars, a tax of 30 percent of the wholesale price of those products except that, if 30 percent of the wholesale price of those products is:

or (b)- Distributed82nd freeSession of(2023) charge– at2 a– trade show, convention or other exhibition or public event in this State, if the distributor has obtained a license to distribute other tobacco products free of charge for the trade show, convention or other exhibition or public event.

or (3) For other tobacco products manufactured, produced, fabricated, assembled, processed, labeled or finished in this State, at the time the other tobacco products are sold in this State to a wholesale dealer of other tobacco products, retail dealer or ultimate consumer.

dealer of other tobacco products, retail dealer or ultimate (b) Must be paid by the wholesale dealer of other tobacco products to the Department, in accordance with the provisions of NRS 370.465.

- *AB232_R1* – 3 – Sec.

The Department shall allow a credit of [30 percent of the wholesale price, less a discount of 0.25 percent for the services rendered in collecting the tax,] the amount of the tax paidpaidthe pursuant to NRS 370.450, not including any amount of the tax retained by the wholesale dealer of other tobacco products to cover the costs of collecting and administering the tax, for other tobacco products [on which the tax has been paid pursuant to NRS 370.450 and] that may no longer be sold.

- 82nd Session (2023) – 3 – shipped from this State and destined for retail sale and consumption outside the State on which the tax has previously been paid.

H~~~~~ 23 - *AB232_R1*82nd Session (2023)