S T A T E   O F   N E W   Y O R K
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                                 9015--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 19, 2009
                               ___________

Introduced  by  M.  of A. LIFTON, GABRYSZAK -- read once and referred to
  the Committee on Ways and Means -- recommitted  to  the  Committee  on
  Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the tax law, 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:
  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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11691-16-0

              

A. 9015--A                          2

  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 FOUR
POUNDS PER THOUSAND, PROVIDED THAT IF A PRODUCT  ALSO  MEETS  THE  DEFI-
NITION OF "CIGARETTE" UNDER THIS ARTICLE, IT SHALL BE TREATED AS A CIGA-
RETTE 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 I-1 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 I-1 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. This act shall take effect July 1, 2010.