NY State Senate Bill 2023-S78

Current Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to budget and revenue
Jan 04, 2023	referred to budget and revenue

2023-S78 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§470 & 471-b, Tax L
Versions Introduced in 2021-2022 Legislative Session:: S4820

2023-S78 (ACTIVE) - Summary

Provides that the tax on cigars and premium cigars shall be at the rate of seventy-five percent of the wholesale price or fifty cents, whichever is less, and is intended to be imposed only once upon the sale of any cigars or premium cigars; makes related provisions.

2023-S78 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S78

SPONSOR: GALLIVAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to excise taxes on cigars and
premium cigars

 
PURPOSE:

To establish the rate of the tobacco products tax exclusively for premi-
um cigars or cigars at seventy-five percent of the wholesale price or
fifty cents, whichever is less.

 
SUMMARY OF PROVISIONS:

Section 1 establishes a definition of "premium cigar" under section 470
of the tax law.

Section 2 makes necessary technical amendments to paragraph (a) of
subdivision 1 of § 471-b the tax law.

Section 3 amends subdivision 1 of § 471-b of the tax law governing the
imposition of a tobacco products tax by adding a new paragraph (d)
capping the amount of said tax for premium cigars and cigars at fifty
cents per item.

Section 4 establishes the effective date.

 
JUSTIFICATION:

Small business is the backbone of New York's economy. The recent
increase in the tobacco products tax, as codified pursuant to the FY
2021 State budget, on cigars and premium cigars in particular, has nega-
tively affected hundreds of independent retail tobacconist shops across
New York by driving consumers of such products to other outlets outside
the State or to locations not subject to the State's taxing authority.

This new tobacco products tax rate is also likely to have an adverse
effect on the expected increase in tax revenue as consumers shop else-
where. Moreover, this new tobacco products tax is inconsistent with the
tax rate imposed by contiguous states. Recently, the State of New Jersey
capped its tobacco products tax on cigars at fifty cents per item.

Establishing a rate cap on the products tax as proposed by this legis-
lation will conform such tax with an ever growing number of States doing
the same and is essential to maintaining a level playing field for small
business retail tobacconists.

 
LEGISLATIVE HISTORY:

2021-22: S.4820 Referred to Budget and Revenue

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S78 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    78
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to excise taxes on  cigars  and
   premium cigars

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Section 470 of the tax law is  amended  by  adding  a  new
 subdivision 22 to read as follows:
   22.  "PREMIUM  CIGAR."  MEANS  ANY ROLL OF TOBACCO FOR SMOKING THAT IS
 WRAPPED IN WHOLE TOBACCO LEAF;  CONTAINS  A  ONE  HUNDRED  PERCENT  LEAF
 TOBACCO  BINDER;  CONTAINS  AT LEAST FIFTY PERCENT (OF FILLER BY WEIGHT)
 LONG LEAF TOBACCO; IS HANDMADE OR HAND ROLLED; HAS NO FILLER, NONTOBACCO
 TIP OR NONTOBACCO MOUTHPIECE; DOES  NOT  HAVE  A  CHARACTERIZING  FLAVOR
 OTHER  THAN TOBACCO; CONTAINS ONLY TOBACCO, WATER AND VEGETABLE GUM WITH
 NO OTHER INGREDIENTS OR ADDITIVES; AND WEIGHS MORE THAN SIX  POUNDS  PER
 ONE THOUSAND UNITS.
   §  2.  Paragraph (a) of subdivision 1 of section 471-b of the tax law,
 as amended by section 18 of part D of chapter 134 of the laws  of  2010,
 is amended to read as follows:
   (a)  Such  tax  on tobacco products other than CIGARS, PREMIUM CIGARS,
 snuff and little cigars shall be at the rate of seventy-five percent  of
 the  wholesale  price,  and is intended to be imposed only once upon the
 sale of any tobacco products other than CIGARS,  PREMIUM  CIGARS,  snuff
 and little cigars.
   §  3.  Subdivision  1  of  section  471-b of the tax law is amended by
 adding a new paragraph (d) to read as follows:
   (D) SUCH TAX ON CIGARS OR PREMIUM CIGARS  SHALL  BE  AT  THE  RATE  OF
 SEVENTY-FIVE PERCENT OF THE WHOLESALE PRICE OR FIFTY CENTS, WHICHEVER IS
 LESS,  AND  IS  INTENDED  TO  BE  IMPOSED ONLY ONCE UPON THE SALE OF ANY
 CIGARS OR PREMIUM CIGARS.
   § 4.  This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD00556-01-3

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Senate Bill S78

Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

2023-S78 (ACTIVE) - Details

2023-S78 (ACTIVE) - Summary

2023-S78 (ACTIVE) - Sponsor Memo

2023-S78 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S78

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Sponsored By

Patrick M. Gallivan

Current Bill Status - In Senate Committee Budget And Revenue Committee

2023-S78 (ACTIVE) - Details

2023-S78 (ACTIVE) - Summary

2023-S78 (ACTIVE) - Sponsor Memo

2023-S78 (ACTIVE) - Bill Text download pdf

Comments