This bill aims to create a Tobacco Tax Distribution Behavioral Health Fund in North Dakota, funded by collections from tobacco taxes. The fund is designated to enhance depression and anxiety behavioral health services through regional human service centers, with funding allocations based on the number of individuals served and prioritizing those in financial need. The bill also introduces new definitions for "alternative tobacco products" and "electronic smoking devices," while amending existing tax provisions related to various tobacco products, including the implementation of new excise taxes.

Key provisions include a 56% excise tax on the wholesale purchase price of electronic smoking devices and a 28% tax on alternative tobacco products. The bill modifies the allocation of tax revenues to direct funds from specific tobacco taxes into the behavioral health fund while ensuring a portion remains for the state general fund. It also establishes penalties for non-compliance with tax reporting and payment requirements, including a five percent penalty on unpaid taxes and interest for delays. The tax commissioner is granted authority to enforce these regulations and can waive penalties under certain circumstances. The provisions of this bill will take effect for taxable events occurring after June 30, 2025.

Statutes affected:
INTRODUCED: 57-36-01, 57-36-25, 57-36-26, 57-36-31, 57-36-32