AB 471 — Revises provisions governing remote sales of certain tobacco products. (BDR 32-846)

The cigar or pipe tobacco is delivered by common carrier, private delivery service or other method of remote delivery, or the - *AB471_R1* – 3 – seller is not in the physical presence of the buyer when the buyer obtains possession of the cigars or pipe tobacco.

3.25.

The provisions of sections 1.1 to 3.9 of this act apply to a remote retail seller during a calendar year in which or immediately following any calendar year in which:

1.

The cumulative gross receipts from remote retail sales by the remote retail seller to ultimate consumers in this State exceed $100,000;

or 2.

The remote retail seller makes 200 or more separate remote retail sales transactions to ultimate consumers in this State.

Sec.

The tax must be paid by the remote retail seller to the Department in accordance with the provisions of section 3.4 of this act.

The tax is imposed on a remote retail seller only if, during the current calendar year or the immediately preceding calendar year:

(a) The cumulative gross receipts of the remote retail seller from remote retail sales of cigars or pipe tobacco, or both, by the - 83rd Session (2025) – 4 – $100,000;

orl seller to ultimate consumers in this State exceed (b) The remote retail seller makes 200 or more separate remote retail sales of cigars or pipe tobacco, or both, to ultimate consumers in this State.

4.

-5. *AB471_R1* – 4 – 4.

A remote retail seller shall, not later than 20 days after the end of each month, submit to the Department a report setting forth such information as the Department may prescribe concerning cigars and pipe tobacco on which the tax provided by section 3.3 of this act was imposed during the limitation, information concerning:t must include, without (a) All cigars and pipe tobacco brought into this State from outside this State, or caused to be brought into this State from outside this State, by the remote retail seller, or shipped or transported from within or outside this State to ultimate consumers in this State by the remote retail seller, during the preceding calendar month.month;

The report must include, without limitation, information concerning:

(a) All cigars and pipe tobacco brought into this State from outside this State, or caused to be brought into this State from outside this State, by the remote retail seller, or shipped or transported from outside this State to ultimate consumers in this State by the remote retail seller, during the preceding calendar month;

Every remote retail seller shall keep at the principal place of business identified on the license issued to the remote retail seller pursuant to section 3.6 of this act complete and accurate records relating to remote retail sales to ultimate consumers in this State, including invoices indicating the actual cost or actual cost list price paid by the remote retail seller for each stock keeping unit.

- 83rd Session (2025) – 5 – (d) The invoice number;

2.after the date of the sale to the ultimate consumer in this State orrs the date of the last entry made on the record, whichever is later.

Every remote retail seller shall preserve for at least 5 years after the date of the sale to the ultimate consumer in this State or the date of the last entry made on the record, whichever is later.

- *AB471_R1* – 5 – 2.

(g) Be accompanied by a certified copy of the certificate required by NRS 602.010 or any renewal certificate required by NRS 602.035.

(h) Provide information concerning the independent, third- party age verification service through which the applicant will perform an age verification to comply with NRS 202.24935.

3.65.

No license as a remote retail seller may be issued, maintained or renewed if:

1.

The provisions of chapter 372 or 374 of NRS, or any regulations adopted pursuant thereto, require the applicant or licensee to impose, collect and remit sales tax, or collect and remit use tax, and the applicant or licensee:

(a) Is not registered with the Department pursuant to NRS 360B.200 or does not hold a valid permit for each place of business of the applicant pursuant to NRS 360.5971;

or - 83rd Session (2025) – 6 – (b) Is delinquent in the payment of any such tax, or any penalty or imposed by the Department for delinquent payment of such tax.

2.

The applicant or licensee is:

purchase or sale of cigars or pipe tobacco to an ultimate consumerpt, in this State;

and (b) Delinquent in the payment of any such tax, or any penalty or interest imposed by the Department for delinquent payment of such tax.

3.

The applicant or licensee does not provide for age verification through an independent, third-party age verification service that compares information available from a commercially available database, or aggregate of such databases, that are regularly used by governmental agencies and businesses for the purposes of age and identity verification to the personal information entered by the person during the ordering process to establish that the person is over the age of 21 years.

Sec.

Each holder of a license issued pursuant to section 3.6 of this act shall include the license information on the Internet website of the licensee.

Licenses issued under section 3.6 of this act are nontransferable, except that upon prior written notice to the Department the location of the premises for which the license was issued may be changed.

Each license issued by the Department pursuant to section 3.6 of this act is valid only for the calendar year for which it is issued and must be renewed annually.

The Department shall charge an annual license fee of $650 for a license as a remote retail seller of cigars and pipe tobacco.

a license as a remote retail seller of cigars and pipe 3.

If a license is issued pursuant to section 3.6 of this act at any time during the year other than on January 1, except for the renewal of a delinquent license pursuant to subsection 5, the licensee shall pay a proportionate part of the annual fee for the - *AB471_R1* – 6 – remainder of the year, but not less than 25 percent of the annual license fee.

3.85.

1.

After notice to the licensee and a hearing as prescribed by the Department, the Department may suspend or revoke a license if the licensee:

- 83rd Session (2025) – 7 – (a) Fails to file a report or certification required by this chapter or files an incomplete or inaccurate report or certification required by this chapter;

(b) Fails to pay any tax owed upon cigars or pipe tobacco req(c) Sells in this State, purchases or possesses any cigars or pipe tobacco in violation of any provision of this chapter;

(d) Imports into or exports from this State any cigars or pipe tobacco in violation of any provision of this chapter;

or (e) Otherwise violates, or causes or permits to be violated, the provisions of this chapter or any regulation adopted thereunder.

2.

Except as otherwise provided in subsection 4, the Department, upon a finding that the licensee has knowingly or negligently failed to comply with any provision of this chapter or any regulation adopted by the Commission, may:

(a) Impose on the licensee a civil penalty pursuant to NRS 370.523;

(b) In the case of a first violation of a provision of this chapter or any regulation adopted by the Commission, suspend the license of the licensee for not more than 60 consecutive calendar days;

(c) In the case of a second or subsequent violation of the same provision of this chapter or any regulation adopted by the Commission, suspend the license of the licensee for not more than consecutive calendar days or permanently revoke the license of the licensee;

or (d) Take any combination of the actions authorized by paragraphs (a), (b) and (c).

shall not purchase or sell cigars or pipe tobacco to be sold during the period of suspension or revocation:

(a) On the premises in this State occupied or controlled by the person;

or (b) From any premises located outside this State if the cigars or pipe tobacco are purchased or sold for distribution in this State.

4.

The expiration, transfer, surrender, continuance, renewal or extension of a license issued pursuant to this chapter does not bar or abate any disciplinary proceedings or action.

5.

The Department shall permanently revoke the license of any licensee who knowingly or negligently:

(a) Sells or otherwise disposes of cigars or pipe tobacco that are in the constructive possession of the Department;

or (b) Is convicted of any felony relating to the manufacture, distribution or sale of cigars or pipe tobacco.

- 83rd Session (2025) – 8 – 6.

In determining the penalty to be imposed on a licensee for a violation of paragraph (a) of subsection 1, the Department shall consider:

(a) The documented reporting and discipline record of the months;e with the Department from the immediately preceding 24 (b) The timeliness of the licensee in correcting any inaccurate information included in a report or certification required by this chapter;

(c) The efforts of the licensee to provide an explanation of the reason for any inaccurate information included in a report or certification required by this chapter or the basis for the omission of information from such a report or certification;

(d) Any remedial measures initiated by the licensee to prevent future violations of a similar nature;

and (e) Any other mitigating factors offered by the licensee or aggravating or mitigating factors identified by the Department.

7.

For the purposes of this section, a report or certification required by this this chapter is:

(a) Inaccurate if the report or certification does not correctly record factual information or there is a discrepancy in the information included in the report or certification and the factual information.

(b) Incomplete if the report or certification does not include all necessary or responsive information.

8.

The Department shall adopt regulations establishing a procedure for the suspension and revocation of any license issued purSec.

- 83rd Session (2025) – 9 – 2.

3.required by subsection 1 whenever a licensed remote retail seller has maintained a satisfactory record of payment of excise taxes or deferred payments, respectively, for a period of 5 consecutive years.

The Department may waive the requirement of the bond required by subsection 1 whenever a licensed remote retail seller has maintained a satisfactory record of payment of excise taxes or deferred payments, respectively, for a period of 5 consecutive years.

Means any noncombustible product containing nicotine or any other substance that employs a heating element, power source, - *AB471_R1* – 7 – electronic circuit or other electronic, chemical or mechanical means, regardless of the shape or size thereof, that can be used to produce vapor from nicotine or any other substance in a solution , [or other form,] the use or inhalation of which simulates smoking.

(a) An electronic cigarette, cigar, cigarillo, pipe, hookah, or vape pen, or a similar product or device;

andandigarillo, pipe, hookah, or vape (b) The components of such a product or device, whether or not sold separately, including, without limitation, vapor cartridges or other container of nicotine or any other substance in a solution or other form that is intended to be used with or in an electronic cigarette, cigar, cigarillo, pipe, hookah, or vape pen, or a similar product or device, atomizers, cartomizers, digital displays, clearomizers, tank systems, flavors, programmable software or other similar products or devices.

- 83rd Session (2025) – 10 – (a) Regulated by the United States Food and Drug Administration pursuant to subchapter V of the Federal Food, Drug, and Cosmetic Act, 21 U.S.C.

(b) Subject to the excise tax on cannabis or cannabis products pursuantpur(c) toPurchased NRSby 372A.200a person who holds a current, valid medical cannabis establishment license pursuant to 372A.380,chapter inclusive.678B of NRS.

(c) Purchased by a person who holds a current, valid medical cannabis establishment license pursuant to chapter 678B of NRS.

3.] means any tobacco of any description, any vapor product, any alternative nicotine product or any product made or derived from tobacco, other than cigarettes.

- *AB471_R1* – 8 – 6.

7.(a) Means any person who:

“Wholesale dealer of other tobacco products” [means] :

1.[(a)] (1) Maintains a place of business in this State, purchases other tobacco products from the manufacturer or a wholesale dealer and possesses, receives, sells or otherwise disposes of such other tobacco products to wholesale dealers or retail dealers within this State;

Means[(b)] (2) Does not maintain a place of business in this State and sells or otherwise disposes of other tobacco products by any personmeans who:[, including, without limitation, through an Internet website,] to wholesale dealers [,] or retail dealers [or ultimate consumers] within this State;

(a)or Maintains[(c)] a(3) placeManufactures, ofproduces, businessfabricates, inassembles, thisprocesses, State,labels purchases other tobacco products from the manufacturer or afinishes wholesale dealer and possesses, receives, sells or otherwise disposes of such other tobacco products to wholesale dealers or retail dealers within this State;State.

(b) Does not maintaininclude a placeremote ofretail businessseller, inas thisdefined Statein andsection sells3 or otherwise disposes of other tobacco products by any means [, including, without limitation, through an Internet website,] to wholesale dealers [,] or retail dealers [or ultimate consumers] within this State;act.

or- (c)83rd Manufactures,Session produces,(2025) fabricates,– assembles,11 processes,– labels[7.] or8. finishes other tobacco products within this State.

2.

Does not include a remote retail seller, as defined in section 3 of this act.

[7.

] 8.

(a) Except as otherwise provided in paragraph (b), the price for which other tobacco products are sold to a wholesale dealer of other tobacco products, valued in money, whether paid in money or otherwise,any withoutof anythe following:y discount or other reduction on account of (1) Trade discounts, cash discounts, special discounts or deals, cash rebates or any ofother reduction from the following:regular sales price;

(1) Trade discounts, cash discounts, special discounts or deals, cash rebates or any other reduction from the regular sales price;

- *AB471_R1* – 9 – Sec.

370.447 Each person licensed as a wholesale dealer of other tobacco products shall keep on hand at all times other tobacco products of a wholesale value of at least $5,000 [.] at each location in this State at which the wholesale dealer maintains a place of business.

Each report submitted pursuant to this section [on or after August 20, 2001,] must be accompanied by the tax owed pursuant to - 83rd Session (2025) – 12 – NRS 370.450 for other tobacco products on which that tax was imposed during the previous month.

370.490of 1.other tobacco products a credit of the amount of the tax paid 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 that may no longer be sold.

The Department shall allow to a wholesale dealer of other tobacco products a credit of the amount of the tax paid 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 that may no longer be sold.

12.5.

NRS 370.523 is hereby amended to read as follows:

370.523 In addition to any other penalty authorized by law:

1.

The Department may impose on each person who violates any of the provisions of this chapter a civil penalty of:

(a) Not more than $1,000 for the first violation of a provision;

and(b) Not more than $5,000 for each subsequent violation of the same provision.

2.

Each violation of any provision of this chapter is considered a separate violation.

3.

Any person who fails to pay any tax imposed pursuant to the provisions of NRS 370.090 to 370.327, inclusive, or 370.440 to 370.503, inclusive, or sections 1.1 to 3.9, inclusive, of this act within the time prescribed by law or regulation shall, in addition to the tax due:

(a) For a first such failure, pay a penalty of 10 percent of the tax due but unpaid, in addition to the tax.

In addition to the penalty, the Department may suspend or revoke the license of the licensee who failed to pay the tax.

(b) For a second such failure in a 24-month period, pay a penalty of 25 percent of the amount of tax due but unpaid.

In - 83rd Session (2025) – 13 – license of the licensee who failed to pay the tax.d or revoke the (c) For a third and each subsequent such failure in a 24-month period, pay a penalty of 25 percent of the amount of tax due but unpaid.

In addition to the penalty, the Department shall suspend or revoke the license of the licensee who failed to pay the tax.

Sec.

Sec.Secs.

14.14-19.

15.

(Deleted by amendment.) Sec.

16.

(Deleted by amendment.) - *AB471_R1* – 10 – Sec.

17.

(Deleted by amendment.) Sec.

18.

(Deleted by amendment.) Sec.

19.

(Deleted by amendment.) Sec.

It is unlawful for a person to knowingly sell or distribute cigarettes, cigarette paper, products containing, made or derived from tobacco, vapor products, alternative nicotine products or products containing, made or derived from nicotine to a person under the age of 21 years through the use of a computer network, tel2.honEvery person who sells or distributes cigarettes, cigarette paper, products containing, made or derived from tobacco, vapor products, alternative nicotine products or products containing, made or derived from nicotine to an ultimate consumer in this State through the use of a computer network, telephonic network or other electronic network.network shall:

2.

Every person who sells or distributes cigarettes, cigarette paper, products containing, made or derived from tobacco, vapor products, alternative nicotine products or products containing, made or derived from nicotine to an ultimate consumer in this State through the use of a computer network, telephonic network or electronic network shall:

(b) Obtain the full name, date of birth and residential address of the purchaser and perform an age verification through an independent, third-party age verification service that compares information available from [public records] a commercially available database, or aggregate of such databases, that are regularlypurposes usedof by governmental agencies and businesses to verify age and identity,identity verification to the personalpersonalr the information entered by the person during the ordering process [that establishes] to establish that the person is over the age of 21 years.

- 83rd Session (2025) – 14 – (a) A civil penalty in an amount not more than $1,000 for each violation;

and (b) The suspension or revocation of the license of the person by the Department of Taxation, if the person is licensed pursuant to chaptercha5.er 370Any violation of NRS.subsection 2 constitutes a deceptive trade practice for the purpose of NRS 598.0903 to 598.0999, inclusive.

5.

Any violation of subsection 2 constitutes a deceptive trade practice for the purpose of NRS 598.0903 to 598.0999, inclusive.

For the purposes of this section, any sale of cigarettes, cigarette paper, products containing, made or derived from tobacco, - *AB471_R1* – 11 – vapor products, alternative nicotine products or products containing, made or derived from nicotine to a natural person in this State who does not intend to resell the item constitutes a sale to an ultimate consumer.

Sec.

3.3.

(2)imposed Lessshall thanbe 30 cents for each premium cigar,cigar.]r, the tax imposed shall be 30 cents for each premium cigar.] 2.

The tax is imposed on a remote retail seller only if, during the current calendar year or the immediately preceding calendar year:

(a) The cumulative gross receipts of the remote retail seller from remote retail sales of cigars or pipe tobacco, or both, by the remote retail seller to ultimate consumers in this State exceed $100,000;

or - 83rd Session (2025) – 15 – (b) The remote retail seller makes 200 or more separate remote retail sales of cigars or pipe tobacco, or both, to ultimate consumers in this State.

4.

[4.[5.

20.7.

1.

There is hereby appropriated from the State associated costs, including computer equipment and software and overtime, associated with carrying out the provisions of this act the following sums:

For the Fiscal Year 2025-2026..................................$206,369 For the Fiscal Year 2026-2027..................................$206,253 2.

Any balance of the sums appropriated by subsection 1 remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 of the respective fiscal years by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 18, 2026, and September 17, 2027, respectively, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 18, 2026, and September 17, 2027, respectively.

Sec.

Sections 1 to 20, inclusive, of this act,act become effective:

Section 20.520.7 of this act becomes effective July 1, 2027.2025.

Section 3.320.5 of this act expiresbecomes byeffective limitationJuly on1, June 30, 2027.

H~~~~~ 25 - *AB471_R1*83rd Session (2025)