S T A T E O F N E W Y O R K
________________________________________________________________________
6255
I N S E N A T E
January 9, 2014
___________
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when
printed to be committed to the Committee on Health
AN ACT to amend the public health law, in relation to including elec-
tronic cigarettes within the definition of smoking; and to amend the
tax law, in relation to exempting electronic cigarettes from taxation
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 8 of section 1399-n of the public health law,
as amended by chapter 13 of the laws of 2003, is amended to read as
follows:
8. "Smoking" means the burning of a lighted cigar, cigarette, ELEC-
TRONIC CIGARETTE, pipe or any other matter or substance which contains
tobacco.
S 2. Section 471 of the tax law is amended by adding a new subdivision
1-a to read as follows:
1-A. ELECTRONIC CIGARETTES SHALL BE EXEMPT FROM THE PROVISIONS OF THIS
SECTION.
S 3. Section 471-a of the tax law, as amended by section 5 of part D
of chapter 134 of the laws of 2010, is amended to read as follows:
S 471-a. Use tax on cigarettes. There is hereby imposed and shall be
paid a tax on all cigarettes used in the state by any person, except
that no tax shall be imposed (1) if the tax provided in section four
hundred seventy-one of this article is paid, (2) on the use of ciga-
rettes which are exempt from the tax imposed by said section, [or] (3)
on the use of four hundred or less cigarettes, brought into the state
on, or in the possession of, any person, OR (4) ON THE USE OF ELECTRONIC
CIGARETTES. Such tax on cigarettes shall be at the rate of four dollars
and thirty-five cents for each twenty cigarettes or fraction thereof,
provided, however, that if a package of cigarettes contains more than
twenty cigarettes, the rate of tax on the cigarettes in such package in
excess of twenty shall be one dollar and eight and three-quarters cents
for each five cigarettes or fraction thereof. Within twenty-four hours
after liability for the tax accrues, each such person shall file with
the commissioner a return in such form as the commissioner may prescribe
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11823-02-3
S. 6255 2
together with a remittance of the tax shown to be due thereon. For
purposes of this article, the word "use" means the exercise of any right
or power actual or constructive and shall include but is not limited to
the receipt, storage or any keeping or retention for any length of time,
but shall not include possession for sale. All other provisions of this
article if not inconsistent shall apply to the administration and
enforcement of the tax imposed by this section in the same manner as if
the language of said provisions had been incorporated in full into this
section.
S 4. 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 SHALL NOT BE IMPOSED UPON ELECTRONIC CIGARETTES.
S 5. The opening paragraph of subdivision (a) of section 471-c of the
tax law, as amended by section 2 of part I-1 of chapter 57 of the laws
of 2009, is amended to read as follows:
There is hereby imposed and shall be paid a tax on all tobacco
products used in the state by any person, except that no such tax shall
be imposed (1) if the tax provided in section four hundred seventy-one-b
of this article is paid, or (2) on the use of tobacco products which are
exempt from the tax imposed by said section, or (3) on the use of two
hundred fifty cigars or less, or five pounds or less of tobacco other
than roll-your-own tobacco, or thirty-six ounces or less of roll-your-
own tobacco brought into the state on, or in the possession of, any
person, OR (4) ON THE USE OF ELECTRONIC CIGARETTES.
S 6. This act shall take effect immediately.