NY State Senate Bill 2023-S4413A

Current 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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to budget and revenue
Apr 18, 2023	print number 4413a
Apr 18, 2023	amend (t) and recommit to budget and revenue
Feb 08, 2023	referred to budget and revenue

Bill Amendments

Original

A (Active)

co-Sponsors

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2023-S4413 - Details

See Assembly Version of this Bill:: A8912
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§470 & 471-b, Tax L
Versions Introduced in 2021-2022 Legislative Session:: S6741, A8156

2023-S4413 - Summary

Provides that the 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; defines "premium cigar"; provides for the repeal of such provisions upon expiration thereof.

2023-S4413 - Sponsor Memo

                                 
BILL NUMBER: S4413

SPONSOR: RAMOS
 
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:

2022: S.6741-A (Ramos)/A.8156-A (Woerner)

 
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.

2023-S4413 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4413
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 8, 2023
                                ___________
 
 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  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.
                                                            LBD06291-01-3

co-Sponsors

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2023-S4413A (ACTIVE) - Details

See Assembly Version of this Bill:: A8912
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§470 & 471-b, Tax L
Versions Introduced in 2021-2022 Legislative Session:: S6741, A8156

2023-S4413A (ACTIVE) - Summary

2023-S4413A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4413A

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the tax law, in relation to excise taxes on premium
cigars; and providing for the repeal of such provisions upon expiration
thereof

 
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".

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.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

Section 1 establishes the definition of "premium cigar" as wrapped in
whole leaf tobacco; containing one hundred percent leaf tobacco binder;
made manually combining wrapper, filler, and binder; having no filter,
tip, or non-tobacco mouthpiece and capped by hand; and weighing no more
than six pounds per one thousand units. Section 4 establishes the effec-
tive date and provides for repeal upon the expiration of three years.

 
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 to a
number of other states and create an equal playing field for small busi-
ness retail tobacconists.

 
LEGISLATIVE HISTORY:

2022: S.6741-A (Ramos)/A.8156-A (Woemer)

 
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 and shall expire and be deemed
repealed 3 years after such date.

2023-S4413A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4413--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 8, 2023
                                ___________
 
 Introduced  by  Sens.  RAMOS, ADDABBO, ASHBY, COMRIE, COONEY, FERNANDEZ,
   GALLIVAN, MARTINEZ, ORTT, PARKER,  RIVERA,  SEPULVEDA,  STEC  --  read
   twice  and  ordered  printed,  and when printed to be committed to the
   Committee on Budget and Revenue -- 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;  and  providing for the repeal of such provisions upon expira-
   tion thereof
 
   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." A CIGAR THAT:
   (A) IS WRAPPED IN WHOLE LEAF TOBACCO; AND
   (B) CONTAINS A ONE HUNDRED PERCENT LEAF TOBACCO BINDER; AND
   (C) IS MADE BY MANUALLY COMBINING THE WRAPPER, FILLER, AND BINDER; AND
   (D) HAS NO FILTER, TIP, OR NON-TOBACCO MOUTHPIECE  AND  IS  CAPPED  BY
 HAND; AND
   (E) WEIGHS MORE THAN SIX POUNDS PER ONE THOUSAND UNITS.
   §  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 and shall  expire  and  be
 deemed repealed 3 years after such date.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD06291-02-3

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Senate Bill S4413A

Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

Bill Amendments

co-Sponsors

2023-S4413 - Details

2023-S4413 - Summary

2023-S4413 - Sponsor Memo

2023-S4413 - Bill Text download pdf

co-Sponsors

2023-S4413A (ACTIVE) - Details

2023-S4413A (ACTIVE) - Summary

2023-S4413A (ACTIVE) - Sponsor Memo

2023-S4413A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4413A

Share this bill

Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

Bill Amendments

co-Sponsors

2023-S4413 - Details

2023-S4413 - Summary

2023-S4413 - Sponsor Memo

2023-S4413 - Bill Text download pdf

co-Sponsors

2023-S4413A (ACTIVE) - Details

2023-S4413A (ACTIVE) - Summary

2023-S4413A (ACTIVE) - Sponsor Memo

2023-S4413A (ACTIVE) - Bill Text download pdf

Comments