This bill proposes the creation of new tax regulations on various tobacco products, including cigars, alternative tobacco products, electronic smoking devices, and their respective 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, alternative tobacco products, and electronic smoking devices, all based on the wholesale purchase price. 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 definitions of various tobacco-related terms and to outline the collection and allocation of tax revenues. Notably, it specifies that all tax revenues collected will be directed to the state treasury, with a portion designated for the newly established Tobacco Tax Distribution Fund. 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