S T A T E O F N E W Y O R K
________________________________________________________________________
5820--A
2009-2010 Regular Sessions
I N S E N A T E
June 8, 2009
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Introduced by Sens. KRUEGER, OPPENHEIMER -- read twice and ordered
printed, and when printed to be committed to the Committee on Rules --
recommitted to the Committee on Investigations and Government Oper-
ations 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 and chapter 235 of the laws of 1952, re-en-
titled by chapter 369 of the laws of 1959 "An act to enable any city
of the state having a population of one million or more to adopt, and
amend local laws, imposing certain specified types of taxes on ciga-
rettes, cigars and smoking tobacco which the legislature has or would
have power and authority to impose, to provide for the review of such
taxes, and to limit the application of such local laws", 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.]
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11691-13-0
S. 5820--A 2
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:
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 I1 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 I1 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. Paragraph (b) of subdivision 1 of section 1 of chapter 235 of the
laws of 1952, re-entitled by chapter 369 of the laws of 1959 "An act to
enable any city of the state having a population of one million or more
to adopt, and amend local laws, imposing certain specified types of
taxes on cigarettes, cigars and smoking tobacco which the legislature
has or would have power and authority to impose, to provide for the
review of such taxes, and to limit the application of such local laws,"
as amended by chapter 252 of the laws of 1963, is amended and a new
paragraph (d) is added to read as follows:
(b) The rate of such tax on cigars OTHER THAN LITTLE CIGARS shall not
exceed one cent on each SUCH cigar sold at a price of not less than
seven cents and not more than fifteen cents; two cents on each SUCH
cigar sold at a price of not less than sixteen cents and not more than
S. 5820--A 3
twenty-nine cents; and three cents on each SUCH cigar sold at a price of
thirty cents or more. Where more than one cigar OTHER THAN A LITTLE
CIGAR is sold, whether or not in a package, box or container, such tax
shall be applied to each SUCH cigar on the basis of the price applicable
to each SUCH cigar. The tax ON CIGARS OTHER THAN LITTLE CIGARS shall not
be applicable to SUCH cigars sold at a price less than seven cents a
cigar.
(D) THE RATE OF SUCH TAX ON LITTLE CIGARS SHALL NOT EXCEED THE RATE OF
TAX IMPOSED ON CIGARETTES UNDER PARAGRAPH (A) OF THIS SUBDIVISION, AS
SUCH PARAGRAPH MAY BE AMENDED OR IN EFFECT FROM TIME TO TIME OR UNDER
ANY SUCCESSOR PROVISION IMPOSING SUCH A TAX ON CIGARETTES.
S 9. Subdivision 2 of section 1 of chapter 235 of the laws of 1952,
re-entitled by chapter 369 of the laws of 1959 "An act to enable any
city of the state having a population of one million or more to adopt,
and amend local laws, imposing certain specified types of taxes on ciga-
rettes, cigars and smoking tobacco which the legislature has or would
have power and authority to impose, to provide for the review of such
taxes, and to limit the application of such local laws", as amended by
section 5 of part MM-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
(2) As used herein, the term "cigarette" shall mean and include (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 appear-
ance, 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 subdivision. [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.] The term "cigar" does not include any
cigarette as defined in this subdivision. AS USED HEREIN, THE TERM
"LITTLE CIGAR" SHALL MEAN AND INCLUDE 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 WEIGHS
NOT MORE THAN FOUR POUNDS PER THOUSAND, PROVIDED THAT IF A PRODUCT ALSO
MEETS THE DEFINITION OF "CIGARETTE" UNDER THIS SECTION, IT SHALL BE
TREATED AS A CIGARETTE AND NOT AS A LITTLE CIGAR.
S 10. This act shall take effect July 1, 2010.