This bill proposes the enactment of new tax regulations on various tobacco products, including cigars, alternative tobacco products, electronic smoking devices, and their substances, as well as amendments to existing definitions and tax collection procedures. Key insertions include a detailed definition of "alternative tobacco products," which encompasses noncombustible products containing nicotine intended for human consumption, and the establishment of separate tax rates: 32% on cigars, 28% on other tobacco products, and 28% on alternative tobacco products and electronic smoking devices. Additionally, the bill creates a Tobacco Tax Distribution Fund, which will allocate collected taxes to local public health units and organizations providing crisis hotline services.

The bill also amends existing sections of the North Dakota Century Code to clarify the transfer and allocation of tobacco tax revenue, including a new continuing appropriation for the Tobacco Tax Distribution Fund. Notably, it specifies that all moneys collected from these taxes will be deposited into the fund, which is dedicated to supporting health services. The effective date for the new tax provisions is set for taxable events occurring after June 30, 2025.

Statutes affected:
INTRODUCED: 57-36-01, 57-36-31, 57-36-32