senate Bill S4365

Amends certain definitions relating to tobacco products and changes the minimum pack sizes for tobacco products and the tax amount for tobacco products

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 22 / Mar / 2013
    • REFERRED TO HEALTH
  • 08 / Jan / 2014
    • REFERRED TO HEALTH

Summary

Amends certain definitions relating to tobacco products and changes the minimum pack sizes for tobacco products and the tax amount for tobacco products.

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Bill Details

See Assembly Version of this Bill:
A7106
Versions:
S4365
Legislative Cycle:
2013-2014
Current Committee:
Senate Health
Law Section:
Public Health Law
Laws Affected:
Amd §§1399-aa & 1399-gg, Pub Health L; amd §§470 & 471-b, Tax L

Sponsor Memo

BILL NUMBER:S4365

TITLE OF BILL: An act to amend the public health law and the tax law,
in relation to amending certain definitions relating to tobacco
products; and to amend the public health law and the tax law, in
relation to changing the minimum pack sizes for tobacco products and
the tax amount for tobacco products

PURPOSE:

To ensure that state definition of all tobacco products reaches all of
the new smokeless tobacco products and remain comprehensive so that
all products will not escape having to fully comply with all state
tobacco product tax laws.

SUMMARY OF PROVISIONS:

Section 1399-aa subdivision 5 of the public health law is amended: To
make sure that the state definition of "tobacco products" reaches all
new and novel smokeless tobacco products.

Section 1399-aa of the public health law is amended by adding a new
subdivision 14: Making all state "cigarette" definitions comprehensive
to fully comply with all state tobacco product laws.

Subdivisions 1, 2 and 2-a of section 470 of the tax law, subdivision 1
as amended by section 14 and subdivision 2 as amended by section 15 of
part D of chapter 134 of the laws of 2010 and subdivision 2-a as added
by chapter 552 of the laws of 2008, are amended: (i)To reflect the
changes to the definition of "cigarette" to make all definitions
comprehensive to fully comply with all state tobacco product laws.
(ii)To make all state "smokeless tobacco" and "tobacco product"
definitions comprehensive.

A new subdivision 2-c is added: To make sure the weight-based tax does
not apply to very-low-weight smokeless tobacco.

A new subdivision 2-d is added: "Moist snuff" is defined.

Subdivision 2 of section 1399-gg of the public health law is amended:
Set minimum pack sizes for all tobacco products.

Subdivision 1 of section 471-b of the tax law is amended: To avoid
sharply under-taxing new and novel tobacco products compared to
regular tobacco products, New York should tax all the different types
of tobacco products at the same or parallel high rates.

JUSTIFICATION:

New York collects more than $2 billion in tobacco taxes and related
revenue every year, but the state has consistently cut the amount
dedicated to the comprehensive, evidence-based Tobacco Control Program
that includes hard-hitting ads, effective cessation and prevention
services, smoke-free air laws to protect all workers from toxic
secondhand smoke, and an aggressive attack on point-of-sale marketing
in bodegas and elsewhere in our community. In New York, smoking still
costs 70 lives each day. Health care costs amount to $8.1 billion


annually, including more than $2 billion from Medicaid alone. Lost
wages and productivity linked to smoking are $6.05 billion a year.
The proposed legislation would further the state's tobacco cessation
efforts by raising much needed revenue, at the same time it seeks to
discourage advertising to the most vulnerable group of New Yorkers
which smokeless tobacco is marketed to - our children. The proposal
would:

*Raise the state tax on moist snuff to $3.63 per ounce and on other
tobacco products (OTPs) to 95% of wholesale price
*Establish minimum tax rates for each major type of OTP based on the
state cigarette tax
*Close tax loopholes that allow some cigarettes to be taxed as cigars
*Fix definitions that could allow some new types of tobacco products
to slip through the cracks and escape taxation

LEGISLATIVE HISTORY:

None.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4365

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 22, 2013
                               ___________

Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Health

AN ACT to amend the public health law and the tax law,  in  relation  to
  amending  certain  definitions  relating  to  tobacco products; and to
  amend the public health law and the tax law, in relation  to  changing
  the  minimum  pack  sizes  for tobacco products and the tax amount for
  tobacco products

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Subdivision 5 of section 1399-aa of the public health law,
as  amended  by  chapter  152  of the laws of 2004, is amended and a new
subdivision 14 is added to read as follows:
  5. "Tobacco products" means one or more cigarettes or  cigars,  bidis,
chewing  tobacco,  LOOSE TOBACCO, SINGLE-UNIT TOBACCO, powdered tobacco,
nicotine water or any other tobacco products AND ALSO INCLUDES ANY OTHER
PRODUCT CONTAINING TOBACCO OR NICOTINE THAT IS INTENDED OR  EXPECTED  TO
BE  CONSUMED  EXCEPT  FOR ANY SUCH PRODUCT THAT HAS BEEN APPROVED BY THE
U.S.  FOOD AND DRUG ADMINISTRATION FOR SALE AS A TOBACCO  USE  CESSATION
PRODUCT  OR  FOR  OTHER  MEDICAL PURPOSES AND IS BEING MARKETED AND SOLD
SOLELY FOR THAT APPROVED PURPOSE.
  14. "CIGARETTE" MEANS ANY ROLL FOR SMOKING MADE WHOLLY OR IN  PART  OF
TOBACCO  OR OF ANY OTHER SUBSTANCE, IRRESPECTIVE OF SIZE, SHAPE, APPEAR-
ANCE, PACKAGING, PRICING, MARKETING OR LABELING AND WHETHER OR NOT  SUCH
TOBACCO  OR  SUBSTANCE  IS FLAVORED, ADULTERATED OR MIXED WITH ANY OTHER
INGREDIENT, THE WRAPPER OR COVER OF WHICH IS MADE OF PAPER OR ANY  OTHER
SUBSTANCE  OR  MATERIAL  BUT  IS NOT MADE IN WHOLE OR IN PART OF TOBACCO
THAT IS LIKELY TO BE OFFERED TO, PURCHASED BY, OR CONSUMED BY  CONSUMERS
AS  A  CIGARETTE,  AS  DEFINED  ABOVE,  INCLUDING  ANY  ROLL FOR SMOKING
CONTAINING TOBACCO WRAPPED IN A SUBSTANCE CONTAINING TOBACCO THAT WEIGHS
NO MORE THAN FOUR AND A HALF POUNDS PER THOUSAND UNLESS IT IS WRAPPED IN
WHOLE TOBACCO LEAF AND DOES NOT HAVE AN INTERNAL FILTER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08228-02-3

S. 4365                             2

  S 2. Subdivisions 1, 2 and 2-a of section 470 of the tax law, subdivi-
sion 1 as amended by section 14 and subdivision 2 as amended by  section
15  of  part D of chapter 134 of the laws of 2010 and subdivision 2-a as
added by chapter 552 of the laws of 2008, are amended and two new subdi-
visions 2-c and 2-d are added to read as follows:
  1. "Cigarette." Any roll for smoking made wholly or in part of tobacco
or of any other substance, irrespective of size [or], shape, APPEARANCE,
PACKAGING, PRICING, MARKETING OR LABELING and whether or not such tobac-
co  or substance is flavored, adulterated or mixed with any other ingre-
dient, the wrapper or cover of which is  made  of  paper  or  any  other
substance  or  material  but  is not made in whole or in part of tobacco
THAT IS LIKELY TO BE OFFERED TO, PURCHASED BY, OR CONSUMED BY  CONSUMERS
AS  A  CIGARETTE,  AS  DEFINED  ABOVE,  INCLUDING  ANY  ROLL FOR SMOKING
CONTAINING TOBACCO WRAPPED IN A SUBSTANCE CONTAINING TOBACCO THAT WEIGHS
NO MORE THAN FOUR AND A HALF POUNDS PER THOUSAND UNLESS IT IS WRAPPED IN
WHOLE TOBACCO LEAF AND DOES NOT HAVE AN INTERNAL FILTER.
  2. "Tobacco products." Any cigar, including a little cigar, or  tobac-
co,  other  than cigarettes, [intended for consumption by smoking, chew-
ing, or as snuff] AND ALSO INCLUDES ANY OTHER PRODUCT CONTAINING TOBACCO
OR NICOTINE THAT IS INTENDED OR EXPECTED TO BE CONSUMED EXCEPT  FOR  ANY
SUCH  PRODUCT  THAT HAS BEEN APPROVED BY THE U.S. FOOD AND DRUG ADMINIS-
TRATION FOR SALE AS A TOBACCO USE CESSATION PRODUCT OR FOR OTHER MEDICAL
PURPOSES AND IS  BEING  MARKETED  AND  SOLD  SOLELY  FOR  THAT  APPROVED
PURPOSE.
  2-a.  "[Roll-your-own]  LOOSE  tobacco."  Any  tobacco  product  that,
because of its appearance, type, packaging or labeling, is suitable  for
use  and  likely to be offered to, or purchased by, consumers as tobacco
for making cigarettes.  LOOSE TOBACCO SHALL ALSO INCLUDE  PIPE  TOBACCO,
ROLL-YOUR-OWN TOBACCO AND ANY OTHER LOOSE TOBACCO USED FOR SMOKING.
  2-C.  "SINGLE-UNIT  TOBACCO  PRODUCTS." ANY TOBACCO PRODUCT, INCLUDING
FINELY CUT, GROUND OR POWDERED LOOSE TOBACCO OR BLEND CONTAINING TOBACCO
INTENDED FOR ORAL CONSUMPTION WITHOUT BEING COMBUSTED, OTHER THAN  CIGA-
RETTES  OR  CIGARS,  THAT  IS  OFFERED  IN  DISCRETE SINGLE-USE TABLETS,
LOZENGES, POUCHES, PILLS, OR OTHER SINGLE-DOSE OR SINGLE-USE  UNITS,  OR
IN PACKAGES OF SUCH SINGLE-USE UNITS.
  2-D.  "MOIST SNUFF."   FINELY CUT, GROUND OR POWDERED LOOSE TOBACCO OR
BLEND CONTAINING TOBACCO INTENDED FOR  ORAL  CONSUMPTION  WITHOUT  BEING
COMBUSTED THAT IS NOT A SINGLE-UNIT TOBACCO PRODUCT AS DEFINED IN SUBDI-
VISION TWO-C OF THIS SECTION.
  S  3.  Subdivision  2  of section 1399-gg of the public health law, as
added by chapter 513 of the laws of 2004, is amended to read as follows:
  2. No person engaged in the  business  of  manufacturing,  selling  or
otherwise  distributing  tobacco  products, herbal cigarettes, cigarette
wrapping papers, wrapping leaves or tubes, or any agent or  employee  of
such  person,  shall manufacture or cause to be manufactured for sale in
this state, or sell or distribute in this  state:  (a)  any  package  or
other  container  of cigarettes containing fewer than twenty cigarettes;
(b) any package of [roll-your-own] LOOSE tobacco  containing  less  than
[six-tenths]  SIXTY-FIVE HUNDREDTHS of an ounce of tobacco; [or] (c) ANY
PACKAGE OF CIGARS CONTAINING FEWER THAN FIVE CIGARS; (D) ANY PACKAGE  OF
SINGLE-UNIT  TOBACCO,  AS  DEFINED  IN SUBDIVISION TWO-C OF SECTION FOUR
HUNDRED SEVENTY OF THE TAX LAW, CONTAINING FEWER THAN TWENTY  PIECES  OF
SINGLE-USE UNITS; (E) ANY PACKAGE OF MOIST SNUFF CONTAINING LESS THAN AN
OUNCE  OF  TOBACCO;  OR  (F) any package or other container of cigarette
wrapping papers, wrapping leaves or tubes, that are or are held  out  to

S. 4365                             3

be  suitable  for  use  or  used as devices to wrap tobacco for smoking,
containing fewer than twenty sheets, leaves or tubes.
  S  4.  Subdivision  1  of  section 471-b of the tax law, as amended by
section 2 of part QQ-1 of chapter 57 of the laws of 2008, paragraphs (a)
and (b) as amended by section 18 and paragraph (c) as added  by  section
19  of  part D of chapter 134 of the laws of 2010, is amended to read as
follows:
  1. There is hereby imposed and shall be paid  a  tax  on  all  tobacco
products  possessed in this state by any person for sale, except that no
tax shall be imposed on tobacco products sold under  such  circumstances
that  this  state  is  without  power to impose such tax, or sold to the
United States, or sold to or by a voluntary unincorporated  organization
of  the armed forces of the United States operating a place for the sale
of goods pursuant to regulations promulgated by the  appropriate  execu-
tive  agency  of the United States, to the extent provided in such regu-
lations and policy statements of  such  an  agency  applicable  to  such
sales.
  (a)  Such tax on tobacco products [other than snuff and little cigars]
shall be at the rate of [seventy-five] NINETY-FIVE percent of the whole-
sale price OR THE MINIMUM RATES AS INDICATED IN PARAGRAPH (B), (C), (D),
(E) OR (F) OF THIS SUBDIVISION, WHICHEVER IS HIGHER, and is intended  to
be  imposed  only once upon the sale of any tobacco products [other than
snuff and little cigars].
  (b) Such MINIMUM tax on MOIST snuff shall be  at  the  rate  of  [two]
THREE  dollars  AND SIXTY-THREE CENTS per ounce and a proportionate rate
on any fractional parts of an ounce[, provided that cans or packages  of
snuff  with  a  net  weight of less than one ounce shall be taxed at the
equivalent rate of cans or packages weighing one ounce]. Such tax  shall
be  computed  based on the net weight as listed by the manufacturer, and
is intended to be imposed only once upon the sale of any MOIST snuff.
  (c) Such tax on little cigars shall be at the  same  rate  imposed  on
cigarettes  under  this  article and is intended to be imposed only once
upon the sale of any little cigars.
  (D) SUCH MINIMUM TAX ON SINGLE-UNIT TOBACCO PRODUCTS SHALL BE  AT  THE
SAME RATE IMPOSED ON CIGARETTES UNDER THIS ARTICLE AND IS INTENDED TO BE
IMPOSED ONLY ONCE UPON THE SALE OF ANY SINGLE-DOSE OR SINGLE-UNIT TOBAC-
CO PRODUCTS.
  (E)  SUCH  MINIMUM TAX ON ANY LOOSE TOBACCO MEANT FOR SMOKING SHALL BE
EQUAL TO THE AMOUNT OF THE TOTAL TAX ON  A  PACK  OF  TWENTY  CIGARETTES
UNDER THIS ARTICLE PER 0.65 OUNCES WITH A PROPORTIONATE TAX ON ANY OTHER
WEIGHTS,  BASED  ON  THE NET WEIGHT DETERMINED BY THE MANUFACTURER. SUCH
TAX IS INTENDED TO BE IMPOSED ONLY ONCE  UPON  THE  SALE  OF  ANY  LOOSE
TOBACCO.
  (F)  SUCH  MINIMUM  TAX  ON CIGARS, OTHER THAN LITTLE CIGARS, SHALL BE
EQUAL TO THE AMOUNT OF THE TOTAL TAX ON  A  PACK  OF  TWENTY  CIGARETTES
UNDER  THIS ARTICLE WITH A PROPORTIONATE TAX ON PACKAGES WITH FEWER THAN
FIVE CIGARS AND IS INTENDED TO BE IMPOSED ONLY ONCE UPON THE SALE OF ANY
CIGARS.
  It shall be presumed that all tobacco products within  the  state  are
subject  to  tax  until  the  contrary is established, and the burden of
proof that any tobacco products are not taxable hereunder shall be  upon
the person in possession thereof.
  S 5. This act shall take effect immediately.

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