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

                                  8052

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               May 1, 2009
                               ___________

Introduced by M. of A. LIFTON -- read once and referred to the Committee
  on Ways and Means

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.]
  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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11691-02-9

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  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
THREE POUNDS PER THOUSAND, PROVIDED THAT IF A  PRODUCT  ALSO  MEETS  THE
DEFINITION  OF  "CIGARETTE" UNDER THIS ARTICLE, IT SHALL BE TREATED AS A
CIGARETTE 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
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

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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 THREE 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, 2009.