NY State Senate Bill 2021-S2753

Senate Bill S2753

2021-2022 Legislative Session

Increases the tax imposed on the sale of certain tobacco products and the retail sale of vapor products

download bill text pdf

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

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to budget and revenue
Jan 25, 2021	referred to budget and revenue

2021-S2753 (ACTIVE) - Details

See Assembly Version of this Bill:: A678
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§471-b & 1181, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A11123
2023-2024: S2425, A86

2021-S2753 (ACTIVE) - Summary

Increases the tax imposed on the sale of certain tobacco products from 75% to 129% and increases the tax imposed on the retail sale of vapor products from 20% to 48%; makes conforming changes.

2021-S2753 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2753

SPONSOR: HOYLMAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to increasing the tax imposed
on the sale of tobacco products and the retail sale of vapor products

 
PURPOSE:

This legislation will increase the tax imposed on the sale of tobacco
and vapor products.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends subdivision 471-b of the tax law to
increase the tax on tobacco products other than little cigars from 75%
of wholesale price to 129% of wholesale price. It also moves snuff from
a tax by weight model to a tax based on the wholesale price.

Section 2 of the bill amends Section 1181 of the tax law to increase the

tax on vapor products from 20% of receipts from the retail sale to 48%
of receipts from the retail sale of such products.

Section 3 of the bill establishes the effective date.

 
JUSTIFICATION:

Studies consistently show that regularly increasing taxes on tobacco
products is one of the most effective ways to reduce new tobacco initi-
ation and encourage cessation, particularly among youth and young adults
who are especially price conscious.

After the federal tobacco tax was increased in 2009, researchers from
the University of Illinois at Chicago found that a nationally represen-
tative survey of 8th, 10th, and 12th grade students showed that students
who reported using smokeless tobacco products dropped between 16% and
24%. The researchers estimated that there would have been approximately
135,000 - 203,000 more smokeless tobacco users among middle school and
high school students had the federal tax not been increased.

However, New York has not increased its tax rates on tobacco products
since 2010. To discourage tobacco usage, reduce health care costs, and
improve health outcomes for New Yorkers, this bill would increase the
tax on tobacco products from 75% of wholesale price to 129% of wholesale
price, and increase the tax on receipts from the retail sale of vapor
products from 20% to 48%. It would also move snuff from being taxed by
weight to being taxed by a percentage of its wholesale price, as other
tobacco products are, to keep up with inflation.

 
LEGISLATIVE HISTORY:

A.11123 of 2019-2020 (Rosenthal): Died in Ways & Means

 
FISCAL IMPLICATIONS:

To be determined. EFFECTIVE DATE:

This act shall take effect immediately.

2021-S2753 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2753
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 25, 2021
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- 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 increasing the  tax  imposed
   on the sale of tobacco products and the retail sale of vapor products

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 471-b of the tax law,  as  amended
 by  section 2 of part QQ-1 of chapter 57 of the laws of 2008, paragraphs
 (a) and (b) as amended by section 18  and  paragraph  (c)  as  added  by
 section  19  of part D of chapter 134 of the laws of 2010, is amended to
 read as follows:
   1. There is hereby imposed and shall be paid  a  tax  on  all  tobacco
 products  possessed in this state by any person for sale, except that no
 tax shall be imposed on tobacco products sold under  such  circumstances
 that  this  state  is  without  power to impose such tax, or sold to the
 United States, or sold to or by a voluntary unincorporated  organization
 of  the armed forces of the United States operating a place for the sale
 of goods pursuant to regulations promulgated by the  appropriate  execu-
 tive  agency  of the United States, to the extent provided in such regu-
 lations and policy statements of  such  an  agency  applicable  to  such
 sales.
   (a)  Such tax on tobacco products other than [snuff and] little cigars
 shall be at the rate of [seventy-five] ONE HUNDRED  TWENTY-NINE  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.
   (b)  [Such  tax on snuff shall be at the rate of two dollars per ounce
 and a proportionate rate on any fractional parts of an  ounce,  provided
 that  cans or packages of snuff with a net weight of less than one ounce
 shall be taxed at the equivalent rate of cans or packages  weighing  one
 ounce.  Such  tax shall be computed based on the net weight as listed by

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00802-01-1

 S. 2753                             2

 the manufacturer, and is intended to be imposed only once upon the  sale
 of any snuff.
   (c)]  Such  tax  on little cigars shall be at the same rate imposed on
 cigarettes under this article and is intended to be  imposed  only  once
 upon the sale of any little cigars.
   It  shall  be  presumed that all tobacco products within the state are
 subject to tax until the contrary is  established,  and  the  burden  of
 proof  that any tobacco products are not taxable hereunder shall be upon
 the person in possession thereof.
   § 2. Section 1181 of the tax law, as added by section 1 of part UU  of
 chapter 59 of the laws of 2019, is amended to read as follows:
   §  1181.  Imposition  of  Tax. In addition to any other tax imposed by
 this chapter or other law, there is hereby imposed  a  tax  of  [twenty]
 FORTY-EIGHT  percent  on receipts from the retail sale of vapor products
 sold in this state. The tax is imposed on the purchaser and collected by
 the vapor products dealer as defined in subdivision (b) of section elev-
 en hundred eighty of this article, in trust for and on  account  of  the
 state.
   § 3. This act shall take effect immediately.

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