NY State Senate Bill 2021-S6741A

Archive: Last 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 07, 2022	print number 6741a
Mar 07, 2022	amend (t) and recommit to budget and revenue
Jan 05, 2022	referred to budget and revenue
May 13, 2021	referred to budget and revenue

Bill Amendments

Original

A (Active)

co-Sponsors

2021-S6741 - Details

See Assembly Version of this Bill:: A8156
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§470 & 471-b, Tax L
Versions Introduced in Other Legislative Sessions:: 2023-2024: S4413, A3376, A8912
2025-2026: S2133, A5284

2021-S6741 - Summary

Provides that the tax on 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 premium cigars; defines "premium cigar".

2021-S6741 - Sponsor Memo

                                
 
BILL NUMBER: S6741

SPONSOR: RAMOS
 
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 amends § 470 of the tax law by adding a new subdivision 22
that establishes the definition of "premium cigar" to be consistent with
the FDA.

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:

Recent tax increases on cigars and premium cigars in New York has driven
the sale of these products to neighboring states where tax rates are
much lower. This has had severely negative effects on the sustainability
of over 200 premium cigar shops in New York that were already suffering
due to the COVID19 pandemic.

Capping the premium cigar tax rate at fifty cents per item would
discourage buyers from buying online as well as strengthen sales within
the State. Additionally, this would prove to be an effective measure to
help increase State revenues.

Establishing a tax cap at fifty cents per item will work to conform with
a number of other States and create an equally playing field for small
business retail tobacconists.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S6741 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6741
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 13, 2021
                                ___________
 
 Introduced  by  Sen.  RAMOS  -- 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"  HAS  THE SAME MEANING AS DEFINED BY THE FEDERAL
 FOOD AND DRUG ADMINISTRATION.
   § 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.
                                                            LBD11062-01-1

co-Sponsors

View additional co-sponsors

2021-S6741A (ACTIVE) - Details

See Assembly Version of this Bill:: A8156
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§470 & 471-b, Tax L
Versions Introduced in Other Legislative Sessions:: 2023-2024: S4413, A3376, A8912
2025-2026: S2133, A5284

2021-S6741A (ACTIVE) - Summary

2021-S6741A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6741A

SPONSOR: RAMOS
 
TITLE OF BILL:

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

 
TITLE OF BILL:

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

 
PURPOSE:

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

 
SUMMARY OF PROVISIONS:

Section 1 establishes the definition of "premium cigar" to be consistent
with the FDA.

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

Section 3 caps the amount of the tobacco products tax for premium cigars
at fifty cents per item.

Section 4 establishes the effective date.

 
JUSTIFICATION:

Tax rates on premium cigars in New York, coupled with the pandemic-fu-
eled shift to online purchasing, has driven the sale of these products
to neighboring states/online where tax rates are much lower (PA, 0%; NH,
0%; NJ, 30%; RI, 50 cents per; CT, 50 cents per).  This has had severely
negative effects on the sustainability of over 200 premium cigar shops
in New York that were already suffering due to the COVID-19 pandemic.

Capping the premium cigar tax rate at fifty cents per item would mini-
mize the cost advantage of buying online as well as strengthen sales
within the State. Additionally, this would prove to be an effective
measure to help increase state revenues.

Establishing a tax cap at fifty cents per item will work to conform with
a number of other states and create an equal playing field for small
business retail tobacconists.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

Premium cigars are 2.5% of the market for tobacco products, not includ-
ing cigarettes.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S6741A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6741--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 13, 2021
                                ___________
 
 Introduced by Sens. RAMOS, COONEY -- read twice and ordered printed, and
   when printed to be committed to the Committee on Budget and Revenue --
   recommitted  to the Committee on Budget and Revenue 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, in relation to excise taxes on 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" HAS THE SAME MEANING AS  DEFINED  BY  THE  FEDERAL
 FOOD AND DRUG ADMINISTRATION.
   §  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 PREMIUM CIGARS, snuff and
 little cigars shall be at the rate of seventy-five percent of the whole-
 sale price, and is intended to be imposed only once upon the sale of any
 tobacco products other than 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 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 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.
                                                            LBD11062-03-2

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Find your Senator and share your views on important issues.

Do you support this bill?

Senate Bill S6741A

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Actions

Bill Amendments

co-Sponsors

2021-S6741 - Details

2021-S6741 - Summary

2021-S6741 - Sponsor Memo

2021-S6741 - Bill Text download pdf

co-Sponsors

2021-S6741A (ACTIVE) - Details

2021-S6741A (ACTIVE) - Summary

2021-S6741A (ACTIVE) - Sponsor Memo

2021-S6741A (ACTIVE) - Bill Text download pdf

Comments

Do you support this bill?

Get Status Alerts for 2021-S6741A

Senate Bill S6741A

Share this bill

Sponsored By

Jessica Ramos

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Actions

Bill Amendments

co-Sponsors

Jeremy Cooney

2021-S6741 - Details

2021-S6741 - Summary

2021-S6741 - Sponsor Memo

2021-S6741 - Bill Text download pdf

co-Sponsors

Joseph P. Addabbo Jr.

Jeremy Cooney

Patrick M. Gallivan

Daphne Jordan

2021-S6741A (ACTIVE) - Details

2021-S6741A (ACTIVE) - Summary

2021-S6741A (ACTIVE) - Sponsor Memo

2021-S6741A (ACTIVE) - Bill Text download pdf

Comments