This bill establishes a Tobacco Tax Distribution Behavioral Health Fund in North Dakota, funded by tobacco tax collections, to support depression and anxiety behavioral health services through regional human service centers. The allocations from this fund will prioritize individuals in financial need and are based on the number of individuals served. Additionally, the bill introduces a new excise tax on electronic smoking devices and alternative tobacco products, set at fifty-six percent of the wholesale purchase price, while amending existing tax provisions for cigarettes and other tobacco products.

The legislation also updates definitions and tax rates for various tobacco products, including a new definition for "alternative tobacco products," and removes previous provisions regarding the allocation of revenue to the general fund, redirecting those funds to the new behavioral health fund. Distributors of these products are required to remit tax proceeds quarterly, with penalties established for late filings or payments. The bill's provisions 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