A02119 Summary:

BILL NOA02119
 
SAME ASNo Same As
 
SPONSORDinowitz (MS)
 
COSPNSRPaulin
 
MLTSPNSRMcDonough, Thiele
 
Amd §470, Tax L; amd §1399-aa, Pub Health L
 
Provides for the taxation of electronic cigarette cartridges as tobacco products.
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A02119 Actions:

BILL NOA02119
 
01/23/2023referred to ways and means
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A02119 Committee Votes:

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A02119 Floor Votes:

There are no votes for this bill in this legislative session.
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A02119 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2119
 
SPONSOR: Dinowitz (MS)
  TITLE OF BILL: An act to amend the tax law and the public health law, in relation to providing for the taxation of electronic cigarette cartridges   PURPOSE: This legislation would include electronic cigarette cartridges as a tobacco product in the tax law, and would subsequently subject them to the appropriate taxes for such items.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends subdivision 2 and adds subdivisions 22 and 23 to § 470 of the tax law to add to the definition of "tobacco products" an elec- tronic cigarette or c-cigarette and electronic cigarette cartridge or e-cigarette cartridge and provides definitions for those terms. Section 2 adds subdivision 19 to section 1399-aa of the public health law to add the definition of an electronic cigarette cartridge or e-ci- garette cartridge. Section 3 sets the effective date.   JUSTIFICATION: In recent years we have begun to address the litany of issues that have arrived with the rise in popularity of the electronic cigarette (e-ci- garette). Beginning with the ban on sales to minors, they are now banned from being used indoors in the City of New York, and legislation to do the same on a statewide level is being pursued. However, the issue of taxation has yet to be addressed and this legislation will do just that. Currently the Federal Food and Drug Administration (FDA) has yet to rule on how to regulate these products but many states and localities are moving ahead. New York will join Minnesota in classifying the cartridges that contain the nicotine and/or other chemicals that deliver the addic- tive drug that are found in cigarettes and other forms of tobacco products in a vaporized form. In December of 2010, the U.S. Court of Appeals for:the D.C. Circuit issued a decision stating that e-cigarettes and other products "made or derived from tobacco" should be regulated as tobacco products and that the FDA can regulate them under the Tobacco Control. Act. On April 25, 2011 the FDA announced it would not appeal that ruling, and has since been working toward forming a strategy to regulate e-cigarettes under the Tobacco Control Act. Those in the business of selling e-cigarettes market them as a safe alternative to traditional forms of smoking, i.e. cigarettes, cigarillos and many other smoking related ways of inhaling nicotine. The truth is that to date, the FDA is unaware of what is in the majority of these devices; those they have tested have been found to contain not only nicotine but also detectable levels of known carcinogens and toxic chem- icals. The FDA also found that "quality control processes used to manu- facture these products are inconsistent or non-existent" Additionally, while they are often marketed as a smoking cessation tool 'or a safer alternative, there is growing concern amongst tobacco' control organiza- tions that there is little noticeable difference in appearance when using these devices. This could lead to young teens being potentially lured by the e-cigarettes and ultimately find themselves addicted to nicotine, which could very well lead to smoking cigarettes. Adding these products to Section 470 of the tax law will bring these products in line with other tobacco products; they will be regulated and taxed in the same fashion as other tobacco products. As the State continues to fight to lessen the smoking population as a public health measure, allowing an addictive drug like nicotine to be sold without tax is simply counter intuitive.   PRIOR LEGISLATIVE HISTORY: 2021-22: A.3514 - Ways and Means / S.3045 Budget and Revenue 2019-20- A.3503 - Ways and Means / S.876 - Investigations and Government Operations 2017-18- A.1139 - Ways and Means / S.1089 - Investigations and Govern- ment Operations 2015-16- A.296'- Ways and Means / S.722 - Investigations and Government Operations 2013-14 - A.8594 - Held for Consideration in Ways and Means / S.6610 Investigations and Government Operations   FISCAL IMPLICATIONS: The State will receive significant new revenue by classifying these products as tobacco products; they will subsequently be taxed under existing law and new regulations promulgated by the Department of Taxa- tion and Finance as directed under this bill.   EFFECTIVE DATE: This act shall take effect on the 180th day after it shall have become a law; provided, however, that the Department of Taxation and Finance is authorized and directed to promulgate rules and regulations necessary for the implementation of this act on or before such date.
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A02119 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2119
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 23, 2023
                                       ___________
 
        Introduced  by  M. of A. DINOWITZ, PAULIN -- Multi-Sponsored by -- M. of
          A. McDONOUGH, THIELE -- read once and referred  to  the  Committee  on
          Ways and Means
 
        AN  ACT  to  amend the tax law and the public health law, in relation to
          providing for the taxation of electronic cigarette cartridges

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Subdivision 2 of section 470 of the tax law, as amended by
     2  chapter 728 of the laws of 2019, is amended and two new subdivisions  22
     3  and 23 are added to read as follows:
     4    2.  "Tobacco products." Any cigar, including a little cigar, or tobac-
     5  co, other than cigarettes, intended for consumption by smoking, chewing,
     6  vaporizing or as snuff, and shall  include  e-cigarette  cartridges  and
     7  electronic  cigarette  cartridges.  "Tobacco products" shall not include
     8  research tobacco products.
     9    22. "Electronic cigarette" or "e-cigarette." A battery-operated device
    10  that contains cartridges filled with a combination of  nicotine,  flavor
    11  and/or  chemicals  that  are  turned  into vapor which is inhaled by the
    12  user.
    13    23. "Electronic cigarette cartridge"  or  "e-cigarette  cartridge."  A
    14  replaceable  cartridge  that contains nicotine or other chemicals and is
    15  intended for use within an electronic cigarette or e-cigarette.
    16    § 2. Section 1399-aa of the public health law is amended by  adding  a
    17  new subdivision 19 to read as follows:
    18    19.  "Electronic cigarette cartridge" or "e-cigarette cartridge" means
    19  a replaceable cartridge that contains nicotine or other chemicals and is
    20  intended for use within an electronic cigarette or e-cigarette.
    21    § 3. This act shall take effect on the one hundred eightieth day after
    22  it shall have become a law; provided, however, that  the  department  of
    23  taxation  and finance is authorized and directed to promulgate rules and
    24  regulations necessary for the implementation of this act  on  or  before
    25  such date.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01009-01-3
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