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 be based on the number of individuals served, with a focus on those in financial need. The bill introduces new definitions for "alternative tobacco products" and "electronic smoking devices," and it amends existing tax regulations, including a new excise tax on electronic smoking devices and alternative tobacco products set at fifty-six percent of the wholesale purchase price. It also updates tax rates and collection procedures for various tobacco products while removing the allocation of revenue to the general fund, redirecting it instead to the new behavioral health fund.

Furthermore, the bill outlines the responsibilities of distributors to remit taxes quarterly, with the option for monthly returns upon request, and establishes penalties for late filings or payments, including a five percent penalty or a minimum of five dollars, plus interest for delays. The tax commissioner is granted the authority to waive penalties under certain circumstances. All tax returns must be filed by the fifteenth day of the month following the reporting period, and penalties collected will be managed like other receipts under the relevant chapter of the law. 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