A00086 Summary:

BILL NOA00086
 
SAME ASSAME AS S02425
 
SPONSORRosenthal L
 
COSPNSR
 
MLTSPNSR
 
Amd §§471-b & 1181, Tax L
 
Increases the tax imposed on the sale of certain tobacco products from 75% to 129% and increases the tax imposed on the retail sale of vapor products from 20% to 48%; makes conforming changes.
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A00086 Actions:

BILL NOA00086
 
01/04/2023referred to ways and means
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A00086 Committee Votes:

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A00086 Floor Votes:

There are no votes for this bill in this legislative session.
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A00086 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A86
 
SPONSOR: Rosenthal L
  TITLE OF BILL: An act to amend the tax law, in relation to increasing the tax imposed on the sale of tobacco products and the retail sale of vapor products   PURPOSE: This legislation will increase the tax imposed on the sale of tobacco and vapor products.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends subdivision 471-b of the tax law to increase the tax on tobacco products from 75% of wholesale price to 129% of wholesale price and changing calculation of the tax on snuff. Section 2 amends Section 1181 of the tax law to increase the tax on vapor products from 20% of receipts from the retail sale to 48% of receipts from the retail sale of such products. Section 3 of the bill establishes the effective date.   JUSTIFICATION: Studies consistently show that regularly increasing taxes on tobacco products is one of the most effective ways to reduce new tobacco initi- ation and encourage cessation, particularly among youth and young adults who are especially price conscious. After the federal tobacco tax was increased in 2009, researchers from the University of Illinois at Chicago found that a nationally represen- tative survey of 8th, 10th, and 12th grade students showed that students who reported using smokeless tobacco products dropped between 16% and 24%. The researchers estimated that there would have been approximately 135,000 - 203,000 more smokeless tobacco users among middle school and high school students had the federal tax not been increased. However, New York has not increased its tax rates on tobacco products since 2010. To discourage tobacco usage, reduce health care costs, and improve health outcomes for New Yorkers, this bill would increase the tax on tobacco products from 75% of wholesale price to 129% of wholesale price, and increase the tax on receipts from the retail sale of vapor products from 20% to 48%. It would also move snuff from being taxed by weight to being taxed by a percentage of its wholesale price, as other tobacco products are, to keep up with inflation.   LEGISLATIVE HISTORY: 2021-22: A.678 - Referred to Ways and Means; S.2753 - Referred to Budget and Revenue 2019-20: A.11123 - Referred to Ways and Means   FISCAL IMPLICATIONS: Undetermined.   EFFECTIVE DATE: This act shall take effect immediately.
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A00086 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           86
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 4, 2023
                                       ___________
 
        Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
          Committee on Ways and Means
 
        AN ACT to amend the tax law, in relation to increasing the  tax  imposed
          on the sale of tobacco products and the retail sale of vapor products

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 1 of section 471-b of the tax law,  as  amended
     2  by  section 2 of part QQ-1 of chapter 57 of the laws of 2008, paragraphs
     3  (a) and (b) as amended by section 18  and  paragraph  (c)  as  added  by
     4  section  19  of part D of chapter 134 of the laws of 2010, is amended to
     5  read as follows:
     6    1. There is hereby imposed and shall be paid  a  tax  on  all  tobacco
     7  products  possessed in this state by any person for sale, except that no
     8  tax shall be imposed on tobacco products sold under  such  circumstances
     9  that  this  state  is  without  power to impose such tax, or sold to the
    10  United States, or sold to or by a voluntary unincorporated  organization
    11  of  the armed forces of the United States operating a place for the sale
    12  of goods pursuant to regulations promulgated by the  appropriate  execu-
    13  tive  agency  of the United States, to the extent provided in such regu-
    14  lations and policy statements of  such  an  agency  applicable  to  such
    15  sales.
    16    (a)  Such tax on tobacco products other than [snuff and] little cigars
    17  shall be at the rate of [seventy-five] one hundred  twenty-nine  percent
    18  of the wholesale price, and is intended to be imposed only once upon the
    19  sale of any tobacco products other than [snuff and] little cigars.
    20    (b)  [Such  tax on snuff shall be at the rate of two dollars per ounce
    21  and a proportionate rate on any fractional parts of an  ounce,  provided
    22  that  cans or packages of snuff with a net weight of less than one ounce
    23  shall be taxed at the equivalent rate of cans or packages  weighing  one
    24  ounce.  Such  tax shall be computed based on the net weight as listed by

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00682-01-3

        A. 86                               2

     1  the manufacturer, and is intended to be imposed only once upon the  sale
     2  of any snuff.
     3    (c)]  Such  tax  on little cigars shall be at the same rate imposed on
     4  cigarettes under this article and is intended to be  imposed  only  once
     5  upon the sale of any little cigars.
     6    It  shall  be  presumed that all tobacco products within the state are
     7  subject to tax until the contrary is  established,  and  the  burden  of
     8  proof  that any tobacco products are not taxable hereunder shall be upon
     9  the person in possession thereof.
    10    § 2. Section 1181 of the tax law, as amended by chapter 92 of the laws
    11  of 2021, is amended to read as follows:
    12    § 1181. Imposition of tax. In addition to any  other  tax  imposed  by
    13  this  chapter  or  other  law, there is hereby imposed a tax of [twenty]
    14  forty-eight percent on receipts from the retail sale of  vapor  products
    15  sold in this state. The tax is imposed on the purchaser and collected by
    16  the vapor products dealer as defined in subdivision (b) of section elev-
    17  en  hundred  eighty  of this article, in trust for and on account of the
    18  state. The taxes imposed under this section shall not apply to adult-use
    19  cannabis products subject to tax under article twenty-C of this chapter.
    20    § 3. This act shall take effect immediately.
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