senate Bill S6610

2013-2014 Legislative Session

Relates to the taxation of electronic cigarette cartridges

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Archive: Last Bill Status - In Committee


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

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Feb 12, 2014 referred to investigations and government operations

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S6610 - Bill Details

See Assembly Version of this Bill:
A8594
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §470, Tax L; amd §1399-aa, Pub Health L

S6610 - Bill Texts

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Provides for the taxation of electronic cigarette cartridges as tobacco products.

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BILL NUMBER:S6610

TITLE OF BILL: An act to amend the tax law and the public health law,
in relation to providing for the taxation of electronic cigarette
cartridges

PURPOSE: This legislation would include electronic cigarette
cartridges as a tobacco product in the tax law, and would subsequently
subject them to the appropriate taxes for such items.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends subdivision 2 of section 470 of the tax law, as
amended by section 15 of part D of chapter 134 of the laws of 2010 by
adding two new subdivisions 20 and 21 that add the definition of an
electronic cigarette or c-cigarette, as well as electronic cigarette
cartridge or e-cigarette cartridge.

Section 2 amends section 1399-aa of the public health law by adding a
new subdivision 14, which adds the definition of an electronic
cigarette cartridge or e-cigarette cartridge.

Section 3 sets the effective date.

JUSTIFICATION: In recent years we have begun to address the litany of
issues that have arrived with the rise in popularity of the electronic
cigarette (e-cigarette). Beginning with the ban on sales to minors,
they are now banned from being used indoors in the City of New York,
and legislation to do the same on a statewide level is being pursued.
However, the issue of taxation has yet to be addressed and this
legislation will do just that. Currently the Federal Food and Drug
Administration (FDA) has yet to rule on how to regulate these products
but many states and localities are moving ahead. New York will join
Minnesota in classifying the cartridges that contain the nicotine
and/or other chemicals that deliver the addictive drug that are found
in cigarettes and other forms of tobacco products in a vaporized form.

In December of 2010, the U.S. Court of Appeals for the D.C. Circuit
issued a decision stating that e-cigarettes and other products "made
or derived from tobacco" should be regulated as tobacco products and
that the FDA can regulate them under the Tobacco Control Act. On April
25, 2011 the FDA announced it would not appeal that ruling, and has
since been working toward forming a strategy to regulate e-cigarettes
under the Tobacco Control Act.

Those in the business of selling e-cigarettes market them as a safe
alternative to traditional forms of smoking, i.e. cigarettes,
cigarillos and many other smoking related ways of inhaling nicotine.
The truth is that to date, the FDA is unaware of what is in the
majority of these devices; those they have tested have been found to
contain not only nicotine but also detectable levels of known
carcinogens and toxic chemicals. The FDA also found that "quality
control processes used to manufacture these products are inconsistent
or non-existent." Additionally, while they are often marketed as a
smoking cessation tool or a safer alternative, there is growing
concern amongst tobacco control organizations that there is little
noticeable difference in appearance when using these devices. This


could lead to young teens being potentially lured by the e-cigarettes
and ultimately find themselves addicted to nicotine, which could very
well lead to smoking cigarettes.

Adding these products to Section 470 of the tax law will bring these
products in line with other tobacco products; they will be regulated
and taxed in the same fashion as other tobacco products. As the State
continues to fight to lessen the smoking population as a public health
measure, allowing an addictive drug like nicotine to be sold without
tax is simply counter intuitive.

PRIOR LEGISLATIVE HISTORY: This is a new bill

FISCAL IMPLICATIONS: The State will receive significant new revenue by
classifying these products as tobacco products; they will subsequently
be taxed under existing law and new regulations promulgated by the
Department of Taxation and Finance as directed under this bill.

EFFECTIVE DATE: This act shall take effect on the 180th day after it
shall have become a law; provided, however, that the Department of
Taxation and Finance is authorized and directed to promulgate rules
and regulations necessary for the implementation of this act on or
before such date.

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

                                  6610

                            I N  S E N A T E

                            February 12, 2014
                               ___________

Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law and the public health law,  in  relation  to
  providing for the taxation of electronic cigarette cartridges

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

  Section 1. Subdivision 2 of section 470 of the tax law, as amended  by
section  15 of part D of chapter 134 of the laws of 2010, is amended and
two new subdivisions 20 and 21 are added 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,
VAPORIZING  or  as  snuff,  AND SHALL INCLUDE E-CIGARETTE CARTRIDGES AND
ELECTRONIC CIGARETTE CARTRIDGES.
  20. "ELECTRONIC CIGARETTE" OR "E-CIGARETTE." A BATTERY-OPERATED DEVICE
THAT CONTAINS CARTRIDGES FILLED WITH A COMBINATION OF  NICOTINE,  FLAVOR
AND/OR  CHEMICALS  THAT  ARE  TURNED  INTO VAPOR WHICH IS INHALED BY THE
USER.
  21. "ELECTRONIC CIGARETTE CARTRIDGE"  OR  "E-CIGARETTE  CARTRIDGE."  A
REPLACEABLE  CARTRIDGE  THAT CONTAINS NICOTINE OR OTHER CHEMICALS AND IS
INTENDED FOR USE WITHIN AN ELECTRONIC CIGARETTE OR E-CIGARETTE.
  S 2. Section 1399-aa of the public health law is amended by  adding  a
new subdivision 14 to read as follows:
  14.  "ELECTRONIC CIGARETTE CARTRIDGE" OR "E-CIGARETTE CARTRIDGE" MEANS
A REPLACEABLE CARTRIDGE THAT CONTAINS NICOTINE OR OTHER CHEMICALS AND IS
INTENDED FOR USE WITHIN AN ELECTRONIC CIGARETTE OR E-CIGARETTE.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that  the  department  of
taxation  and finance is authorized and directed to promulgate rules and
regulations necessary for the implementation of this act  on  or  before
such date.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13623-02-4

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