S T A T E   O F   N E W   Y O R K
________________________________________________________________________
                                 5820--A
                       2009-2010 Regular Sessions
                            I N  S E N A T E
                              June 8, 2009
                               ___________
Introduced  by  Sens.  KRUEGER,  OPPENHEIMER  --  read twice and ordered
  printed, and when printed to be committed to the Committee on Rules --
  recommitted to the Committee on Investigations  and  Government  Oper-
  ations  in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee
AN ACT to amend the tax law and chapter 235 of the laws of 1952,  re-en-
  titled  by  chapter 369 of the laws of 1959 "An act to enable any city
  of the state having a population of one million or more to adopt,  and
  amend  local  laws, imposing certain specified types of taxes on ciga-
  rettes, cigars and smoking tobacco which the legislature has or  would
  have  power and authority to impose, to provide for the review of such
  taxes, and to limit the application of such local laws",  in  relation
  to little cigars
  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
  Section 1. Subdivision 1 of section 470 of the tax law, as amended  by
section  1 of part MM-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
  1. "Cigarette." (a) Any roll for smoking made wholly  or  in  part  of
tobacco  or  of  any  other  substance  wrapped in paper or in any other
substance not containing tobacco, and (b)  any  roll  for  smoking  made
wholly or in part of tobacco wrapped in any substance containing tobacco
that, because of its appearance, the type of tobacco used in the filler,
or  its packaging and labeling, is likely to be offered to, or purchased
by, consumers as a cigarette described in paragraph (a) of this subdivi-
sion. [However, a roll will not be considered  to  be  a  cigarette  for
purposes  of paragraph (b) of this subdivision if it is not treated as a
cigarette for federal excise tax purposes under the  applicable  federal
statute in effect on April first, two thousand eight.]
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11691-13-0
              
             
                          
                S. 5820--A                          2
  S  2.  Subdivision  2  of  section  470  of the tax law, as amended by
section 1 of part MM-1 of chapter 57 of the laws of 2008, is amended  to
read as follows:
  2.  "Tobacco products." Any cigar, INCLUDING A LITTLE CIGAR, or tobac-
co, other than cigarettes, intended for consumption by smoking, chewing,
or as snuff.
  S 3. Section 470 of the tax law is amended by adding a new subdivision
2-b to read as follows:
  2-B. "LITTLE CIGAR." ANY ROLL FOR SMOKING MADE WHOLLY OR  IN  PART  OF
TOBACCO  IF SUCH PRODUCT IS WRAPPED IN ANY SUBSTANCE CONTAINING TOBACCO,
OTHER THAN NATURAL LEAF TOBACCO WRAPPER, AND WEIGHING NOT MORE THAN FOUR
POUNDS PER THOUSAND, PROVIDED THAT IF A PRODUCT  ALSO  MEETS  THE  DEFI-
NITION OF "CIGARETTE" UNDER THIS ARTICLE, IT SHALL BE TREATED AS A CIGA-
RETTE AND NOT AS A LITTLE CIGAR.
  S 4. Subdivision 19 of section 470 of the tax law, as added by section
1  of part MM-1 of chapter 57 of the laws of 2008, is amended to read as
follows:
  19. "Cigar." Any roll of tobacco wrapped in leaf  tobacco  or  in  any
substance  containing  tobacco (other than any roll of tobacco that is a
cigarette as defined in subdivision one of this section).   [However,  a
roll  will not be considered to be a cigar for purposes of this subdivi-
sion if it is not treated as a cigar for  federal  excise  tax  purposes
under the applicable federal statute in effect on April first, two thou-
sand eight.] "CIGAR" SHALL INCLUDE, EXCEPT WHERE EXPRESSLY EXCLUDED, ANY
LITTLE CIGAR.
  S  5.  Paragraph (a) of subdivision 1 of section 471-b of the tax law,
as amended by section 1 of part I1 of chapter 57 of the laws of 2009, is
amended to read as follows:
  (a) Such tax on tobacco products other than snuff  AND  LITTLE  CIGARS
shall be at the rate of forty-six percent of the wholesale price, and is
intended  to  be imposed only once upon the sale of any tobacco products
other than snuff AND LITTLE CIGARS.
  S 6.Subdivision 1 of section 471-b of the tax law is amended by adding
a new paragraph (c) to read as follows:
  (C) SUCH TAX ON LITTLE CIGARS SHALL BE AT THE  SAME  RATE  IMPOSED  ON
CIGARETTES  UNDER THIS ARTICLE, AS THIS ARTICLE MAY BE AMENDED FROM TIME
TO TIME, AND IS INTENDED TO BE IMPOSED ONLY ONCE  UPON THE SALE  OF  ANY
LITTLE CIGARS.
  S 7. Paragraph (i) of subdivision (a) of section 471-c of the tax law,
as amended by section 2 of part I1 of chapter 57 of the laws of 2009, is
amended to read as follows:
  (i)  Such  tax  on tobacco products other than snuff AND LITTLE CIGARS
shall be at the rate of forty-six percent of the wholesale price.
  S 8. Paragraph (b) of subdivision 1 of section 1 of chapter 235 of the
laws of 1952, re-entitled by chapter 369 of the laws of 1959 "An act  to
enable  any city of the state having a population of one million or more
to adopt, and amend local laws,  imposing  certain  specified  types  of
taxes  on  cigarettes,  cigars and smoking tobacco which the legislature
has or would have power and authority to  impose,  to  provide  for  the
review  of such taxes, and to limit the application of such local laws,"
as amended by chapter 252 of the laws of 1963,  is  amended  and  a  new
paragraph (d) is added to read as follows:
  (b)  The rate of such tax on cigars OTHER THAN LITTLE CIGARS shall not
exceed one cent on each SUCH cigar sold at a  price  of  not  less  than
seven  cents  and  not  more  than fifteen cents; two cents on each SUCH
cigar sold at a price of not less than sixteen cents and not  more  than
S. 5820--A                          3
twenty-nine cents; and three cents on each SUCH cigar sold at a price of
thirty  cents  or  more.  Where  more than one cigar OTHER THAN A LITTLE
CIGAR is sold, whether or not in a package, box or container,  such  tax
shall be applied to each SUCH cigar on the basis of the price applicable
to each SUCH cigar. The tax ON CIGARS OTHER THAN LITTLE CIGARS shall not
be  applicable  to  SUCH  cigars sold at a price less than seven cents a
cigar.
  (D) THE RATE OF SUCH TAX ON LITTLE CIGARS SHALL NOT EXCEED THE RATE OF
TAX IMPOSED ON CIGARETTES UNDER PARAGRAPH (A) OF  THIS  SUBDIVISION,  AS
SUCH  PARAGRAPH  MAY  BE AMENDED OR IN EFFECT FROM TIME TO TIME OR UNDER
ANY SUCCESSOR PROVISION IMPOSING SUCH A TAX ON CIGARETTES.
  S 9. Subdivision 2 of section 1 of chapter 235 of the  laws  of  1952,
re-entitled  by  chapter  369  of the laws of 1959 "An act to enable any
city of the state having a population of one million or more  to  adopt,
and amend local laws, imposing certain specified types of taxes on ciga-
rettes,  cigars  and  smoking tobacco which the legislature has or would
have power and authority to impose, to provide for the  review  of  such
taxes,  and  to limit the application of such local laws", as amended by
section 5 of part MM-1 of chapter 57 of the laws of 2008, is amended  to
read as follows:
  (2)  As  used  herein, the term "cigarette" shall mean and include (a)
any roll for smoking made wholly or in part of tobacco or of  any  other
substance  wrapped  in  paper  or  in any other substance not containing
tobacco, and (b) any roll for smoking made wholly or in part of  tobacco
wrapped in any substance containing tobacco that, because of its appear-
ance,  the  type  of  tobacco  used  in the filler, or its packaging and
labeling, is likely to be offered to, or purchased by,  consumers  as  a
cigarette  described  in paragraph (a) of this subdivision.  [However, a
roll will not be considered to be a cigarette for purposes of  paragraph
(b)  of this subdivision if it is not treated as a cigarette for federal
excise tax purposes under the applicable federal statute  in  effect  on
April  first, two thousand eight.] The term "cigar" does not include any
cigarette as defined in this subdivision.   AS  USED  HEREIN,  THE  TERM
"LITTLE  CIGAR"  SHALL MEAN AND INCLUDE ANY ROLL FOR SMOKING MADE WHOLLY
OR IN PART OF TOBACCO IF  SUCH  PRODUCT  IS  WRAPPED  IN  ANY  SUBSTANCE
CONTAINING  TOBACCO, OTHER THAN NATURAL LEAF TOBACCO WRAPPER, AND WEIGHS
NOT MORE THAN FOUR POUNDS PER THOUSAND, PROVIDED THAT IF A PRODUCT  ALSO
MEETS  THE  DEFINITION  OF  "CIGARETTE"  UNDER THIS SECTION, IT SHALL BE
TREATED AS A CIGARETTE AND NOT AS A LITTLE CIGAR.
  S 10. This act shall take effect July 1, 2010.